PDF Publication Title:
Text from PDF Page: 013
transparency of ownership benefits regulators [expert #6]. However, to bridge the gap between the physical and the digital world, additional components such as intelligent sensors are necessary [expert #7, #8]. Yet, using NFTs poses several challenges. As they are nothing more than a standardized piece of software code executed on a blockchain, they are highly dependent on the properties of the underlying blockchain protocol. As one expert explained, “anything you can do with NFTs is enabled by Ethereum, and everything you cannot do is not enabled by Ethereum” [expert #1]. One of the most notable challenges of Ethereum is its limited scalability (Eberhardt and Tai, 2018). However, we found that solutions that overcome this challenge already exist, such as using state channels (Coleman et al., 2018). If this issue is resolved, NFTs should be extremely scalable, as tests revealed that a single contract can handle 2128 NFTs without problems (Entriken et al., 2018). Another challenge is the design dilemma of privacy vs. permissionless blockchain (Corten, 2017). Multiple researchers have shown that privacy is not guaranteed as it is possible to make sense out of pseudonymous data on public blockchains, where transparency and public access is a key feature (Tschorsch and Scheuermann, 2016). Yet, development of new promising technologies such as zero-knowledge proofs (ZKP) is ongoing and will solve this issue in the future (Koens, Ramaekers and Van Wijk, 2018). ZKP is a cryptographic method allowing to proof to another party certain properties without revealing them (e.g. proving that you’re of a certain age, without revealing your actual age) (Koens et al., 2018). Early proof that privacy is feasible for NFTs has been achieved by a dedicated team of the firm EY, which used ZKPs in combinations with NFTs to facility private equity transactions (Khatri, 2018). Further, NFTs lack easy accessibility for retail users as they are a backend component and do not provide a user-friendly interface [expert #1]. The requirement of paying gas for each function call, which is priced in Ether complicates the use of blockchain-based systems even for experienced users (Rimba et al., 2018). Thus, users are required to purchase cryptocurrency upfront to pay transaction fees, even in case the business model would generally not charge the retail users (Cai et al., 2018). However, a recent EIP (Ethereum Improvement Proposal) called “Gas Stations Network”, enabling smart contracts to pay the gas costs instead of the user, shows that this problem can be resolved (Weiss et al., 2018). Not only the price of gas fluctuates but also the price of the cryptocurrency Ether is highly volatile (Rimba et al., 2018). This makes it very hard for retail users to calculate costs based on fiat currencies such as USD. A potential way to overcome this challenge is to use decentralized stablecoins such as Dai, that try to resemble the value of fiat currency and thus free users from the currency risk and mental effort of fluctuating exchange rates (Ito and O’Dair, 2019). Another important challenge for the use of blockchain-based systems in general is limited legal enforceability (Christidis and Devetsikiotis, 2016). While token owner can rely on authenticity, legal ownership and consumption of the rights represented by NFTs are a different matter [expert #3, #7]. For a blockchain-based system to be truly trustless, legal correctness and legitimacy within the current institutional environment are required (Hawlitschek, Notheisen and Teubner, 2018). Further, as NFTs are a very young phenomenon, people who understand NFTs are very scarce and the language used in the blockchain space is very technical and generally not well understood by the public [expert #1, #5, #9]. During the construction of the artifact, we revealed a typical issue for NFTs regarding the creation of tokens. Unlike for fungible tokens, for NFTs it is not possible to create many tokens right away. Minting NFTs one by one is cumbersome and inefficient since it requires lots of computational power and thus high gas costs occur. One solution we found and applied is to create the tokens only when demanded and paid for by buyers. This strategy is called “user-mintable” tokens (Stehlik and Vogelsang, 2018). Another challenge is the two-stepped process of approving transactions before the actual transaction can happen (Entriken et al., 2018). While a solution that is commonly used is to transfer NFTs temporarily to a marketplace contract that takes care of the transactions, this approach has some disadvantages. The fact that token ownership is temporarily transferred away from the owner poses a problem for some use cases and security can be negatively affected. What is more, every additional transfer costs gas and reduces efficiency. Further, the nature of smart contracts generally makes it easy to extend the system with new features. However, upgrading existing smart contracts bears multiple technical and operational risks and costs money. Relying on development frameworks like OpenZeppelin and Truffle significantly simplifies upgrade procedures and reduces risks. Summing up, NFTs enable new beneficial ways to digitally represent digital and physical assets. Yet, many challenges remain to be solved. NFTs are based on blockchain technology which is still in its infancy and not yet ready for a mass market of retail users, who demand simplicity, user-friendly interfaces and legal clarity. These demands cannot be solved by NFTs but need to be addressed on the level of the underlying Fortieth International Conference on Information Systems, Munich 2019 13 Non-Fungible Tokens as Event TicketsPDF Image | NFTs in Practice
PDF Search Title:
NFTs in PracticeOriginal File Name Searched:
wi-1045.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
| CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com | RSS | AMP |