At BlockDown 2021, cryptocurrency user EllioTrades and co-author of the Superfarm NFT Project joined a discussion on the value of non-volatile tokens with Edmund Schuster, Associate Professor of Law at the London School of Economics.

By definition, NFTs are unique pieces of digital content that are delivered and transmitted over the Internet using blockchain technology, which is the core technology of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). As a major advantage of NFT, the blockchain guarantees digital scarcity and authenticity of digital collectibles, but some experts believe that this is not strictly necessary.

Schuster, a skeptic of NFT, has argued that there is no technical reason why the world needs NFT, suggesting that non-blockchain digital group lens solutions can achieve exactly the same properties.

“If there is no clear explanation as to why you need this particular technology, I think it’s hype or excitement about the technology itself, not what we’re talking about. This is excitement, in my opinion, roughly by definition.” Professor noted.

Schuster drew attention to the problem of trust in ecosystems to collect data about games and argued that using the blockchain alone would not make the data collection system very different from the central database.

He said, “If you have to trust the party that organizes the game to use the token, it doesn’t matter if you have a blockchain-protected version or a database managed by the same people.”

NFT Bear also stated that “the blockchain component is an unnecessary complexity” due to the counterparty risks associated with the potential depreciation of digital acquisitions due to the opportunistic behavior of issuing firms. Shuster gave an example of how game creators were giving players more powerful special weapons, rendering ancient weapons no longer valuable.

According to NFT, EllioTrades, blockchain technology is essential for securing digital assets. “When you have a digital asset, a digital asset, and unprotected on the blockchain, time has shown that that digital asset will at some point become a target for theft. Information cannot be protected without a decentralized network that provides this protection. This is why the blockchain is so important,” EllioTrades notes.

EllioTrades highlighted the importance of decentralization provided by blockchain technology and stated that virtual ownership in NFTs and in cryptography in general cannot be confiscated from users.

NFT Bull said the technology gives token holders a better quality of life as well as more freedom to interact, including lending, leasing and other complex activities associated with decentralized finance.

Source: CoinTelegraph