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by PretzelPirate 1905 days ago
The confusion comes from how NFTs that represent images have become so popular right now (I believe it’s because it’s the easiest use case of an NFT and people want to make a quick buck).

NFTs themselves are just a cryptographic representation of something unique. It can be a token that says “you own this image”, but it can also be an in-game virtual item, a software license, a digital trading card, etc...

There is some level of centralization in many cases. For example, a trading card game will likely own the contract that can mint cards and own the art for the cards. Other services can read that contract to see what cards you own and use that data inside their own game logic (though probably not the images due to legal reasons).

This would already be useful for something like Magic the Gathering where unofficial online services exist to play by whatever rules you want. The last time I used one, you just put your deck list in so everyone used the rarest cards. They may have evolved now to check your Magic Online account, but you can’t do that as easily in Magic Arena.

Assuming the creators don’t limit your freedom in their smart contract, you can also buy, sell, or trade the NFT to whoever and for whatever you want unlike a centralized service which wouldn’t enable access to an open market outside of the game’s ecosystem.

2 comments

Here’s the thing - if it relies on a central authority to say “this is the genuine article” why do you even need a blockchain? A PGP certificate or X.509 is arguably “a cryptographic representation of something unique”

EDIT even something like a domain name - which is arguably a better example as only one of such a thing can actually exist in that only one owner can derive the value from it.

An NFT on the blockchain can be verifired crytographically that it is the "original", it can't be duplicated, and you can transfer it to anyone if you have the private key and the gas.

A token off the blockchain controlled by a centralized group could transfer ownership without a key at all. They could issue the same one to more than one party and duplicate it. Someone else could claim to own the record and they could decide you don't anymore, they get to decide who it is sold to. Or prohibit you from transferring it at all.

The real world item that the token refers to is by definition “a token off the blockchain”.
What if two people have access to the private key? How do we prove who owns it?
I don't like NFTs, but the point of putting it on the blockchain is that it's globally available, verifiable, and immutable. Many versions of a PGP-signed message could exist and be passed around.
My point isn’t that the token itself is globally verifiable but that the asset it refers to actually is ...
Because then it’s not on the blockchain. Yes, I could sell you a txt record, saying you own this hash, which represents a jpg, but then it’s not blockchain.

Honestly, I don’t know.

Maybe it’s because the blockchain is immutable? Like, I could change that txt record because I’m evil or something. That makes sense to me, in terms of technology.

Someone is trying it your way: https://signed.work/

The problem is that these signatures cannot be traded anymore, since no one is tracking who owns which editions. I can sell my signature to you, and then sell it to someone else tomorrow. The artist intended to mint 100 "prints", but suddenly 1000 people claim to own one.

No but the point is, when you’re talking about physical artefacts you can in theory issue as many tokens as you like ... it’s still down to a central authority to certify.
That's the other reason I hate NFT. The only plausible use case is as a terrible DRM key.
Or, a better DRM key... at least you could transfer it without permission.
Not really. Access to the content referred to by the NFT happens at the whim of the platform. That gives them the ultimate leverage. In this case, transfer doesn't amount to much if the "object" is rendered useless.
Still no worse than some hash key that can be invalidated in the next version with a blacklist. At least a DRM key is something that NFTs are somewhat suited for.

For fuckery, there are still cracks.