[barnabee]

Contracts are a PITA! If you can write one, once, probably based on a completely standard template and then never talk to a lawyer, sign a transfer of ownership, worry about where that ownership info is stored and updating the information when it changes, etc. because the initial contract deferred all that to the owner of the NFT which can be bought and sold with a couple of clicks, I’d call that a massive improvement! Even if a contract is still needed somewhere, the friction is gone.

[Macha]

You can't escape the contracts though.

What happens in that initial sale? The owner declares that whoever possesses the NFT owns the good? Under laws like the first sale doctrine, they can't prevent the subsequent owner passing the legal ownership seperate to the NFT so ownership of the NFT still means nothing legally.

Well how about they take a leaf out of the software industry book, and instead of selling you ownership of the thing the NFT represents, they sell you a transferrable non-revocable exclusive license that requires in its terms that transfers of the license and transfers of the NFT happen in tandem. Well now the future buyers _are_ dealing with contracts.

[djyaz1200]

I agree you can't escape having some contracts but I think the NFT supporters would say that the NFT functions like the deed to a property.

A problem NFT appears to be an attempt to solve is all the parasitic people, organizations and rules that govern the transfer of assets. These lawyers, title clerks, law firms, title companies, auction houses and governments extract significant rent from asset transfer marketplaces. This rent is a cost to market participants but the larger cost is limiting the liquidity and size of the overall market.

Like imagine if the title to a car was an NFT instead of a piece of paper. I think NFT might just be a complete scam but it might have utility in disintermediating markets.