Like all cryptocurrencies, this type of crypto active has a particular characteristic that, most times, limits investment by individuals.
This feature is none other than the regulatory and security framework surrounding this new form of digital art; This is because, being decentralized, it does not clarify the legal support that supports them. Visit bitcode-ai.live and download the app for a new bitcoin investing strategy.
Security when buying an NFT
It’s incredible how everything related to non-fungible tokens (NFTs) has taken a sudden turn; even more than a year to date, more and more artists are joining this trend.
It makes us think of the security that surrounds the purchase process as a marketing operation and the fact of creating a digital work of art that can have a property title.
What it does not touch is 100% digital.
It is a fact that NFTs, even being purely digital works of art, give their creators authenticity and certification of ownership. It is like copyright; only the creator is supposed to be the one who designs it.
One of the critical aspects is that, thanks to the fact that the works are digital, the possibility of plagiarism or even fraud with some NFT can be easily traced.
Artists have jumped on board with this new way of displaying art, allowing them to auction it at a higher price, which doesn’t bother but satisfies the creators of digital assets.
Although the Blockchain platform and the applications that allow the design and creation of NFTs offer transparency and authentication in operations with this type of crypto active, there are still many legal loopholes; everything is a compliment.
Remember that we are working around crypto assets and that, like cryptocurrencies, they suffer highly variable fluctuations. One day, the work of art’s value may be equivalent to a fortune; the next day, it can be for half of your acquisition cost.
Existence of legal vacuum in NFTs
When we talk about a legal vacuum, we mean that there is more talk about NFTs now, and many questions about legal support revolve around them.
That there is a legal vacuum is true, but not that nothing offers us the protection of digital photographs.
Creating a legal framework that allows the regulation and protection of users during commercial transactions, avoiding theft, and the rules that trading platforms and the creation of NFTs must have are increasingly necessary.
It is not intended to create a regulatory entity; it is to create a legal base where artists can avoid future problems regarding intellectual property and copyright of the works made.
Regulation for Non-Fungible Tokens
Currently, with all the movement of artists around the creation and commercialization of NFTs, the lack of rules or regulations that regulate the exchange and authorship of digital works has generated a critical controversy.
To date, one of the legal tools used to defend against any irregular act on NFTs in each country’s Criminal and Civil Code is based on the articles referring to copyright and Intellectual Property laws.
Let us remember that everything that the digital and cryptographic market is offering is new, so those involved must be the ones who organize and create the rules and laws that provide greater security for this type of operation.
Anyone who wants to invest in cryptocurrencies and crypto assets must weigh the pros and cons of this type of investment.
The security and confidence that a market can generate are essential when investing; the volatility of these digital assets is not a secret to anyone; his high profits are not a lie either.
This type of operation must have, besides the rules of each platform, that exposes and creates NFTs. This regulatory framework offers greater security and protection to the author and buyer of digital assets.
They establish the guidelines to be followed before, during, and after the exchange, auction, purchase, or sale of digital art paintings.