In the last few weeks, NFT technology has been on the agenda of the press and social media. NFTs (Non Fumgible Token) simply transform digital artworks and other collectibles into one-of-a-kind and verifiable assets that can be traded on the blockchain. However, NFTs are everywhere. Digital artist Beeple sold his latest work in NFT for more than $ 69 million. Twitter’s founder Jack Dorsey’s first tweet earned $ 2.9 million in the same way. Everyone from Tesla CEO Elon Musk to toilet paper company Charmin has tried to find a place for themselves in the NFT market. From Turkey to the NFT with madness and laughter Datça Municipality it was included in Saba Tümer. However, like any technology emerging, NFT has its drawbacks. The most prominent of these are the damage it causes to the environment with the high amount of electrical energy it consumes and its vulnerability to intellectual property theft because it is not a central authority. Some critics think that NFTs are a bubble waiting to explode. Here are the unspoken problems of NFTs … Prepared by: Ayşegül Dahi / ntv.com.tr
Nigerian artist Osinachi, who sold the portrait of the basketball player Kobe Bryant, which he created with pieces he created using Microsoft Word, for $ 28,777, said, “So far, through my work. “I couldn’t say I could put food on my table. Digital art really changed that.”
However, not everyone has had such a positive experience as Osinachi. Earlier last month, digital artist Corbin Rainbolt, who frequently shared his work on Twitter, saw at least two of his works being sold as NFT without his consent. He has blocked NFT accounts he finds, but doesn’t know if there are more. Rainbolt, who predominantly made digital pictures of prehistoric life forms and shared them on social media, deleted most of his recent work from Twitter and republished it with a watermark to prevent replay. “I know a lot about paleontology and painting, but the inner workings of this crypto art are a complete mystery to me,” Rainbolt said.
Rainbolt’s incident highlights one of the main problems with NFTs: Anyone can request a digital photo or picture as if it were their own by adding an NFT, even if it’s not theirs. While all transactions on the blockchain are publicly recorded in an immutable digital ledger, people do not need to add their real name or identity to those transactions, making them vulnerable in case of theft of artists’ works.
Rebecca Silverhart, an intellectual property lawyer at Toronto-based law firm Heer Law, said: “In general, when you try to enforce any legal right, not just an intellectual property right, you need to know who to sanction against The main problem with blockchain is that most users are anonymous. For this reason, it is very difficult to apply sanctions in case of any legal violation ”.
On the other hand, the main challenge with NFTs, according to experts, is that the blockchain is inherently decentralized. This means that anyone can create an NFT or cryptocurrency with very little oversight. So, as Rainbolt points out, there is no central authority to apply for complaints, and figuring out what laws might apply to blockchain-related disputes is incredibly complex.
On the other hand, the issue of theft of NFTs themselves is also a big problem. Last month, several users on Twitter reported that their accounts on the Nifty Gateway platform were hacked and thousands of dollars worth of NFTs were stolen.
Nifty Gateway said there was “no indication” that the platform was compromised and that it was in contact with “a small number of users” affected. This highlights another important aspect of NFTs: They have the potential to be hacked as much as email or any other online account.
Eric Cole, the cybersecurity officer of Barrack Obama, former president of the United States, said, “There’s nothing protecting you from NFTs or blockchain theft. People hear such words and they think it’s a magical level of security, but ultimately to store money. You must have a bank account, you must also have an NFT account to store NFTs, and if you do not maintain this password, all bets will be closed.Due to the immutable nature of the blockchain ledger and the lack of a central authority that manages it, every transaction is effectively permanent, even theft transactions. “If someone logs into your NFT account and transfers them to someone else, there is nothing you can do about it. There is no bank you can call, there is no central authority,” he said.
Even before the artwork was compromised, Rainbolt had a more fundamental issue with NFTs: The damage they did to the environment… Rainbolt said, “I don’t like NFTs and cryptocurrencies almost entirely for their environmental cost, Lack of transparency and tolerance for art theft, mine “It’s pretty bad for me, but given the massively disproportionate carbon footprint required to extract this material, it’s not ethically possible to agree with it.”
Cryptocurrency mining and trading uses large amounts of electricity, and many environmental activists warn about the ecological costs of NFTs. According to one estimate, Ethereum, the cryptocurrency for which NFTs are traded, currently consumes the equivalent of electricity used by all of Ireland in a year, but it is difficult to find an accurate estimate of the environmental impact of NFTs in particular. “In my opinion, you are buying in the NFT system, you profit disproportionately from the ecological collapse,” Rainbolt said.
On the other hand, proponents of NFTs argue that the use of large amounts of electrical energy is temporary. Ethereum is expected to transition to a new system that will significantly reduce its energy consumption. Some small NFT markets have already started using a similar model.
Joanie Lemercier, a digital artist who criticizes major NFT platforms, said, “There are some solutions at the moment. To be honest, too much anger is a bit upsetting at the moment. People target artists and embarrass them. I don’t think this is a very good idea,” said Joanie Lemercier.