It’s really nice what you’re trying to explain here, but it completely ignores all the disadvantages I mentioned earlier. The term ‘NFT’ has no practical use, because by definition decentralization also tolerates abuse: after all, there is no centralized system that assesses the use of NFTs, and if there is, NFTs no longer have a right to to exist.
The LTO apparently assumes that NFTs are unique, or more specifically, that the content will never be off the blockchain. They also assume that purses are 100% secure against any abuse that may ever take place.
All the mentioned functionality already exists. NFTs simply add an unnecessary layer of complexity, while removing a lot of security because the concept is trying to move completely outside of legislation or enforcement.
Their mission is extremely idealistic and naive: NFTs will never work unless they are recognized and approved by everyone, not just the NFT community, but this is contrary to the decentralized nature of the NFTs. See (again) my example of buying a house with an NFT, but that applies just as well to digital content.
Also remember (again) that an NFT is nothing more than a purchase receipt, and not the purchase itself. The actual content of an NFT is not part of the NFT you purchase, nor with the LTO concept (this is simply not possible from a practical point of view). Also keep in mind that embossing NFTs is also completely outside the law: People can steal content you create and emboss like NFT without you being able to do anything about it.
Again: the whole concept is of no practical use. It is a paradox in itself. It says it provides security for ownership when it can not.
Buying and owning something does not start and stop with a purchase contract, but unfortunately it is also something that many NFT supporters do not seem to understand.
EDIT: By the way: That LTO thing sounds super shady now that I’m reading your piece and their page again. Especially this:
The NFTs therefore run on the private layer of LTO
If I understand correctly, they are by definition not decentralized NFTs, because there seems to be a layer of centralization … You can not get your cake and eat it too, because the content really does not fit on a blockchain and is protected at the same time
The example LTO mentions with Magic the Gathering is also quite misleading. You do not need the original cards to play that game: Proxies that you print yourself also work. If you want to do it digitally, you still need a framework to play it, such as the servers of the company that maintains the underlying game code. It does not work through NFTs. So why should this be mentioned at all as a leading example or inspiration? It makes no sense. Digital possession of that kind of thing is not necessary at all, because you can digitally copy the item as much as you want. Literally, the only ones who would benefit from NFTs are those who want to make money (quickly) with them, not those who actually want to use the content.
It seems that LTO is also just an outlet trying to promote artificial, digital scarcity, and that they also want to make a lot of money on it (you need their platform, after all). PLEASE do not fall for the NFT hype.
EDIT2: Funny example: What if someone tries to make open source like NFT? Let this sink in for a while
You could make a completely decentralized trading card game with cards that can level up (dynamic content) changing art, etc. Or there is a tall polygon model of your favorite racing driver that a game is built around, the one that beats the driver in a GP season wins the high polygon model as NFT and can run in it from now on.
I would mention this separately because it is in line with what I said above about the game code itself. In what environment do you want to be able to do this? Because here again, the concept encounters a major obstacle: the only way to validate the NFTs is to only use them in a centralized gaming environment where this happens. You can not organize such environments in a decentralized way because you want to be able to use that card or driver in a game that you play with others, so others need to be able to see and validate that content (because they do not want you to cheat with the card). Then NFT is worth nothing again, because within the environment, everyone in that environment must be able to see and validate NFT, and outside that environment, it does not benefit you. And if the environment runs locally: Well, why use an NFT for that map if everything is running locally and not validated? Agree that you do not want to impose artificial, digital scarcity in a local gaming environment for obvious reasons.
It just has no practical use. Like I said, literally the only people who like to promote NFTs are the people who think they can make a lot of money from it.
[Reactie gewijzigd door Khrome op 21 december 2021 22:21]