Non-fungible tokens (NFTs), smart contracts and contracts : the need for legal and technology assurances

Abstract

Non-Fungible Tokens are often referred to as a technological manner to keep track of ‘ownership’ of various digital or physical assets. However, the reality is that, ‘ownership’ is defined by the law of the land, and NFTs are seen to be challenging what such ownership really means. NFTs, thus are, not only a complex technological ‘ownership’ solution but, a more complex techno-legal one that also raises many questions — especially in light of technological failure. Herein we pose that technology assurances should be considered to mitigate problems where possible, and other legal assurances can kick in where the technology cannot close such gaps. In this paper we first introduce NFTs including their technical and legal complexities and their relation to smart and legal contracts. We thereafter provide an overview of the technology, an analysis of their potential as legal contracts and then make the case for the need for legal and technology assurances.