A guide to Non-Fungible Tokens (NFTs), 2023 - Flipbook - Page 3
T
he internet continues to expand its prominence in
everyday life, with the most recent evolution of this
being the so-called “Web 3.0”, a new iteration of the internet
which is based on blockchain technology.
Out of this technology, a new class of assets has begun to emerge, the
“cryptoasset” or “digital asset”. As of yet, there are no fixed definitions for this
emerging asset class due to its rapid development. The Law Commission has
identified five sub-categories of digital asset, with “crypto-tokens” being the
only one it recommends as constituting a new form of personal property right.
Nonfungible tokens (NFTs) are a type of “crypto-token” as categorised by the
Law Commission but may also be referred to as “cryptoassets” or “digital
assets” due to the flexibility of these terms. These new assets boomed in
popularity in 2021.
This short guide is intended as an introduction to NFTs, with a background to
the technology. It examines the legal and commercial implications of NFTs,
dealing with intellectual property (IP) issues, regulation, smart contracts and
consumer rights. It also addresses points to be considered when encountering
contentious matters involving NFTs. Regulation of NFTs in gambling is not
covered, and nor is taxation of NFTs.
Authors:
Simon Fitzpatrick, Head of
Litigation & Arts
Fred Clark, Associate
+44 (0)20 7079 8162
fclark@boodlehatfield.com
+44 (0)20 7079 8113
sfitzpatrick@boodlehatfield.com
Rosie Adcock, Associate
Ruby Dyce, Associate
+44 (0)20 7079 8291
+44 (0)20 7079 8271
radcock@boodlehatfield.com
rdyce@boodlehatfield.com
This guide was reproduced from Practical Law with permission of the publishers. For
further information visit www.uk.practicallaw.thomsonreuters.com
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