web3/concepts/nft.md

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# Non Fungible Token
A type of [smart contracts](smart-contracts.md) that associates a tradable [crypto asset](cryptoasset.md) with a unique piece of data, often a url to hosted image representing some abstract or perceived notion of ownership in [art](art.md) or [sign value](sign-value.md). Since the tokens have "unique" data associated with the token it is non-fungible unlike other crypto assets which aspire to be a fungible [private money](private-money.md).
NFTs at their most basic conceptual core are a hyperlink or URL that is itself sold as a tradeable asset where the connection between the concepts of the URL and the [ficticious commodity](ficticious-commodity.md) is generated by the [Tinkerbell effect](tinkerbell-effect.md).
NFTs have been critizied as having a payout structure similar to a [pyramid scheme](pyramid-scheme.md) or [multilevel marketing scheme](mlm.md).
NFTs have been critizied as being a [bubble](bubble.md).
NFTs have no [use value](use-value.md).
NFTs have no [fundamental value](fundamental-value.md).
NFTs are a [speculative asset](speculation.md).
NFTs have no [income cashflows](income-cashflows.md).
## Duplication
#todo
## Plagiarism
#todo
## Multiple-chains
#todo
## Link Rot
NFTs have been critized as having no relationship to the underlying artwork and being subject to link-rot.
## Redefinition of Ownership
#todo
## Tinkerbell Effect
#todo
## References
* Olson, Dan. 2022a. Line Goes Up The Problem With NFTs. https://www.youtube.com/watch?v=YQ_xWvX1n9g.
* *NFTs, Cryptocurrencies and Web3 Are Multilevel Marketing Schemes for a New Generation - WSJ. n.d. Accessed 14 March 2022. https://www.wsj.com/articles/nfts-cryptocurrencies-and-web3-are-multilevel-marketing-schemes-for-a-new-generation-11645246824.
* Low, Kelvin F K. 2021. The Emperors New Art: Cryptomania, Art & Property. Art & Property. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3978241.
* Aharon, David Y., and Ender Demir. 2021. NFTs and Asset Class Spillovers: Lessons from the Period around the COVID-19 Pandemic. Finance Research Letters, 102515. https://doi.org/10.1016/j.frl.2021.102515.
* Ante, Lennart. 2021. Non-Fungible Token (NFT) Markets on the Ethereum Blockchain: Temporal Development, Cointegration and Interrelations. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3904683.
* Bodó, Balázs, Alexandra Giannopoulou, João Quintais, and Péter Mezei. 2022. The Rise of NFTs: These Arent the Droids Youre Looking For. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4000423.
* Çağlayan Aksoy, Pınar, and Zehra Özkan Üner. 2021. NFTs and Copyright: Challenges and Opportunities. Journal of Intellectual Property Law & Practice 16 (10): 111526. https://doi.org/10.1093/jiplp/jpab104.
* Casale-Brunet, S., P. Ribeca, P. Doyle, and M. Mattavelli. 2021. Networks of Ethereum Non-Fungible Tokens: A Graph-Based Analysis of the ERC-721 Ecosystem. ArXiv Preprint ArXiv:2110.12545. http://arxiv.org/abs/2110.12545.
* Diehl, Stephen. 2021. The Tinkerbell Griftopia. 19 November 2021. https://www.stephendiehl.com/blog/tinkerbell.html.
* Dowling, Michael. 2021. Fertile LAND: Pricing Non-Fungible Tokens. Finance Research Letters, 102096. https://doi.org/10.1016/j.frl.2021.102096.
* Fairfield, Joshua. 2021. Tokenized: The Law of Non-Fungible Tokens and Unique Digital Property. Indiana Law Journal, 199. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3821102.
* Frye, Brian L. 2021. After Copyright: Pwning NFTs in a Clout Economy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3971240.
* *———. n.d. How to Sell NFTs Without Really Trying. Harvard Journal of Sports and Entertainment Law, Forthcoming. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3930430.
* Gibson, Johanna. 2021. The Thousand-and-Second Tale of NFTS, as Foretold by Edgar Allan Poe. Queen Mary Journal of Intellectual Property 11 (3): 24969. https://doi.org/10.4337/qmjip.2021.03.00.
* Guadamuz, Andres. 2021. The Treachery of Images: Non-Fungible Tokens and Copyright. SSRN Electronic Journal 16 (12): 136785. https://doi.org/10.2139/ssrn.3905452.
* Kim, Soyeon. 2020. Fractional Ownership, Democratization, and Bubble Formation - The Impact of Blockchain Enabled Asset Tokenization. 26th Americas Conference on Information Systems, AMCIS 2020, 05. https://aisel.aisnet.org/amcis2020/adv_info_systems_research/adv_info_systems_research/19/.
* Kong, De-Rong, and Tse-Chun Lin. 2021. Alternative Investments in the Fintech Era: The Risk and Return of Non-Fungible Token (NFT). SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3914085.
* Mackenzie, Simon, and Diāna Bērziņa. 2021. NFTs: Digital Things and Their Criminal Lives. Crime, Media, Culture, 17416590211039796. https://doi.org/10.1177/17416590211039797.
* Mazur, Mieszko. 2021. Non-Fungible Tokens (NFT). The Analysis of Risk and Return. SSRN Electronic Journal. October. https://doi.org/10.2139/ssrn.3953535.
* Nadini, Matthieu, Laura Alessandretti, Flavio Di Giacinto, Mauro Martino, Luca Maria Aiello, and Andrea Baronchelli. 2021. Mapping the NFT Revolution: Market Trends, Trade Networks, and Visual Features. Scientific Reports 11 (1). https://doi.org/10.1038/s41598-021-00053-8.
* Solimano, Andrés. 2021. The Evolution of Contemporary Arts Markets. https://doi.org/10.4324/9781003215127.
* Tonelli, Emily. 2022. Internet Guru Tim OReilly: Crypto and NFTs Are “Pretty Serious Speculative Bubble”. Decrypt. 10 February 2022. https://decrypt.co/92676/internet-guru-tim-oreilly-crypto-nfts-serious-speculative-bubble.
* Whitaker, Amy. 2021. Economics of Visual Art: Market Practice and Market Resistance. Cambridge University Press. https://doi.org/10.1017/9781108649919.
## External References
* [Web3 is Going Great](https://web3isgoinggreat.com)
* [Line Goes Up - The Problem with NFTs](https://www.youtube.com/watch?v=YQ_xWvX1n9g)
* [The NFTBay](https://thenftbay.org)