Can A Lawyer Work Digitally? | Is The Digital Lawyer Have The Future?

Digital Lawyer

The digitization process in the legal sector has been going on for some time. The measures surrounding COVID-19 have accelerated. Training courses are now given digitally, refresher courses can be followed online, procedural documents are emailed to the court, and consultations with clients can be via a video connection.

Could a digital lawyer work as a true digital nomad globally while having a law firm in the United States on paper? And if a lawyer could work completely digitally, what would be the consequences? We figured it out today in this article.

Can A Digital Lawyer Save Time, Money, And Energy?

The digitization of society creates opportunities for Digital lawyers to change the traditional way of working at a law firm. For example, in the United States, there is an Online Law Firm. This initiative offers fully digital legal services and collaborates with experienced lawyers who optimize digital innovations and resources. This saves money, time, and energy. The office is always open, and the lawyers can be reached via WhatsApp.

Is The Client Waiting For a Digital Lawyer?

The digital law firm, is that what the litigant is waiting for? Perhaps, the high costs of a traditional law firm can deter the litigants. A Lawyer expects that there will be hardly any calls with clients in five years and that discussions will be conducted online. The intake interview can disappear: the client fills in the data, possibly after an online consultation via chat or an online face-to-face conversation.

The advantage of this is that the process is faster and costs less. If the intake interview is canceled, the client is mainly concerned with the lawyer's service, accessibility, and pricing. Clients look for lawyers who can solve their problems at short notice for a competitive and transparent fee. The work of a lawyer thus seems to grow towards adding value in a place where the client needs it.

Can a Digital Lawyer Work Anywhere In The World?

If you set up the work process completely digitally, can you work anywhere? The intake discussion no longer needs to occur if the client fills in the data himself, follow-up discussions occur via telephone or video, and procedural documents are exchanged digitally. The refresher training can be followed online. The digital mailroom can process any mail. Only some procedures require oral proceedings in court.

A lawyer's work is changing because legal thinking is partly shifting to determining the strategy, reaching the target group online, and using legal tech properly. While a few years ago, you would search for information in the library. You can now find professional information much faster online, thanks to the possibilities offered by a legal search engine such as Legal Intelligence. You search the legal sources online; you no longer have to go to the office, which is essential for working completely online.

Because a lot of (legal) work can be done online, the way of working is changing. This could mean that more and more online law firms will be added in the short term. The question is whether an online law firm is suitable for every case. Think of more complex matters such as international takeovers on which an entire team of lawyers works. In that case, you as a team probably want to meet regularly at one physical location.

Is The Digital Lawyer Have The Future?

Suppose you work as a lawyer at a firm working on optimizing work processes. You will only be deployed for the work that requires your substantive knowledge. A ticketing system gives you direct insight into the digital file. If you have any questions, you can email the client, and the answers to substantive questions can be found via a legal search engine. And when you have completed the work, press send. To what extent do you have contact with the client?

Do you want to go so far that you no longer have personal contact with the client, and wouldn't the lawyer's work turn into almost assembly line work that requires high-quality knowledge but no different soft skills? And is it possible to build a relationship of trust online? 

If we look at a situation in which the relationship of faith is the starting point, such as psychotherapy, an online treatment does not influence the result. But suppose a client is suspected of murder. Would you like the meetings to occur via an online connection, or would you rather meet at a (secret) location? What do you think about the digital lawyer, now and in the future?

Dropshipping: What Should Dropshipper And Customer Pay Attention To?

Dropshipping: What Should The Dropshipper Legally Pay Attention To, And What Rights Does The Customer Have?

Dropshipping has grown in popularity in recent years. It is an attractive way for a novice entrepreneur to earn money quickly. On the other hand, the customer can benefit from low prices. However, things often go wrong with this way of doing business, and the dropshipper has to adhere to too many legal consumer rules. What are these rules, and what is the customer entitled to if something goes wrong?

What Is Dropshipping?

Dropshipping is when a seller (often a webshop) has the products shipped directly from the supplier to the customer. The dropshipper thus acts merely as an intermediary. This party does not have to keep stock and can save much money.

Often the dropshipper buys products for a very low price from a wholesaler from abroad (often China), after which the product is sold to the customer at a much higher price. In this way, the dropshipper can quickly earn money without too many actions and staff. For this reason, it attracts many people to start a business. However, as you will read further here, some risks are involved.

The Dropshipper Is Liable And Responsible For The Product

Although the dropshipper is only an intermediary and does not see the product being shipped to the customer, this party is legally responsible and liable. For dropshipping, the same rules apply to parties that sell products from their stock. This entails many obligations.

Therefore, the dropshipper is responsible for a good delivery of the product, and this is exactly where this way of selling often goes wrong. The supplier delivers, and the dropshipper does not influence this. This can lead to complications, especially if the supplier is a party in a distant country. 

A lot can happen that delays the delivery; the dropshipper does not influence this. This is why it is very important to make clear agreements about the delivery in advance with the supplier. For example, agree with which carrier the product will be sent, the delivery time, and what should be done if the product is damaged on route. Do not forget to state the delivery times to the consumer clearly.

Do you want to go dropshipping, and do you need help with the contractual agreements with a potential supplier? A lawyer can help you with this. He knows exactly which aspects must be recorded in the agreement.

Dropshipping and Infringement of Intellectual Property Rights

Another thing the dropshipper should pay close attention to is that no intellectual property rights are violated. Again, the dropshipper is responsible for the product that ends up with the customer. That is why absolutely no counterfeit products may be sold. Anyone who does so infringes, for example, the trademark or design right. A trademark owner can then hold the dropshipper liable, leading to hefty compensation.

The dropshipper can never be completely sure that the supplier is not sending counterfeit products. For this reason, it is essential to contractually establish a guarantee with the supplier that no products will be shipped that infringes another's intellectual property right. It is also wise to record the consequences if the supplier does not comply with this guarantee (for example, a fine). 

In addition, it must also be agreed that the dropshipper will not infringe any intellectual property rights of the supplier if the former wants to place photos of the products on their site, for example.

Would you like to know more about which intellectual property rights you should consider when dropshipping? Or do you have a legal dispute because you sold counterfeit products? Then you would do well to be linked to a lawyer who specializes in intellectual property law.

The Customer's Right Of Withdrawal

In principle, the customer has nothing to do with the fact that they have bought a product that has been delivered via dropshipping. Therefore, This has the same consumer rights as a 'normal' direct from a manufacturer or producer. In particular, the right of withdrawal is an important part of this. 

The right of withdrawal means that the customer has 14 days after receipt to change his mind and return the purchase. Therefore, the webshop must refund the amount within 14 days after the withdrawal, whatever the reason for the return. There is an exception to the right of withdrawal for certain products. Think, for example, of custom-made products or items that cannot be returned for hygienic reasons.

Example

Alina bought a speaker through a drop shipping web store. A week after receiving it, she changed her mind; because she saw a better one in an electronics store that she preferred. The web store informs her that they do not accept returns because their supplier does not do this either. Alina does not have to accept this. As a consumer, she has a right of withdrawal, also with dropshipping.

It is not difficult to imagine that there are some snags in returning a product after dropshipping. The webshop must then take back products that they have never owned. Even if the (foreign) supplier does not return products, the dropshipper must do so. The risk is that it will get stuck with all kinds of products, while the attractive thing about dropshipping is not having any stock. Therefore, make good agreements with a supplier on this point as well.

Dropshipping And Warranty

Customers who purchase certain goods are entitled to a warranty. If a product does not work (well) or does not meet the description on the site, the consumer can have it repaired or replaced. It follows European regulations that the customer can demand this up to two years after purchase. 

The dropshipper must therefore be well prepared for this. Again, this can be done by making good agreements with the supplier regarding the warranty. But even if the supplier doesn't take back products, the dropshipper still has to do it. The supplier can take the products back and order a new one from the supplier. This makes it wise for the dropshipper to have storage space for the returned products.

How A Lawyer Can Serve The Dropshipper And The Consumer

It should be clear that the dropshipper must be well aware of the legal rules regarding the sale of the products. Many complications can arise in the process, and the consumer has a strong legal position. 

A lawyer can help put together good and complete contracts with suppliers to avoid problems. For example, when it comes to a legal process, a lawyer is indispensable to limit the damage because counterfeit products have been sold.

As a consumer, have you been disadvantaged by an online store that engages in dropshipping? A lawyer can even take further action to get what you are entitled to.

Cryptocurrencies: What Should You Know About Cryptocurrencies?

What Are Cryptocurrencies?

Cryptocurrencies are digital currencies that use cryptography. The first and best-known crypto is bitcoin, and there are now thousands of coins.

Nowadays, everyone has cryptos - from your neighbor to the market around the corner. But what exactly is it? And what can you do with it? Time to dive in!

What Should You Know About Cryptocurrencies?

1. What are cryptocurrencies?

2. What types of cryptocurrencies exist?

3. How do you get cryptocurrencies?

4. What should you pay attention to when you start with cryptocurrencies?

5. What can you do with cryptocurrencies?

6. When to invest in cryptocurrencies?

7. Which cryptocurrencies to buy?

8. Long and short term

9. Risks of cryptocurrencies

10 Are cryptocurrencies safe?

1. What Are Cryptocurrencies?

Cryptocurrencies are digital currencies that use cryptography. Many of these coins have their blockchain.

A blockchain sounds complicated, but the principle is simple. It is a digital ledger where you can find all transactions and balances of users. All information is stored chronologically in blocks. Those blocks are cryptographically linked.

How does that work? Compare a blockchain with a freight train. A block in the blockchain contains a wagon of information. Do you want to change information from an older block? Then you have to disconnect the whole train.

Most cryptos are decentralized to a greater or lesser extent. That means anyone can participate, and no one is in charge. Take bitcoin. Anyone may process, check, receive and send transactions.

That is a big difference from the money you are used to, such as the Dollar $. The American Central Bank prints the money, and commercial banks check and process the transactions. Cryptocurrencies give that power back to the individual.

2. What Types of Cryptocurrencies Exist?

Bitcoin is the first crypto, but coins come in all shapes and sizes. There are now thousands of cryptos, each with its focus and function. However, you can divide most cryptos into categories. So what should you think about it?

Payment Method

Bitcoin started as a decentralized alternative to money such as the euro and the dollar. This crypto is used as a means of payment or to store digital value. Plenty of other cryptocurrencies also focuses on payments, like Ethereum, Litecoin, Ripple, and Dash.

Applications

In addition to payments, cryptocurrencies can also have other functions. The Ethereum team has the ambitious goal of building a world computer on the blockchain. Instead of money, applications should be decentralized. Such a different focus! Cardano and Solana are other examples of cryptocurrencies targeting decentralized applications (dApps).

Scalability

Due to the popularity of cryptocurrencies, it is sometimes busier on the blockchain than at a Snollebollekes concert. Transactions going from left to right put a lot of pressure on the Ethereum blockchain. That is why there are also crypto projects that relieve other cryptos. An example of this is Polygon (formerly Matic).

Another solution is to split a blockchain into multiple side blockchains. This is what Polkadot does. An additional advantage: every side-chain can be adjusted as desired!

Metaverse

The metaverse is a collective term for digital worlds in which you can walk around and talk to others. Crypto can play an important role in this. With cryptocurrencies, you buy and sell digital pieces of land or accessories. Well-known examples of metaverse coins are Decentraland, The Sandbox, and Axie Infinity.

NFTs

If you're interested in cryptocurrencies, you've probably heard of NFTs. These are tokens that represent a unique object. That could be anything - you can think of it as crazy as there is an NFT of it.

Artwork, football pictures, or even houses can be an NFT. With this unique token, you can prove that you are the owner of these objects. This is recorded on a blockchain, for example, that of Ethereum. Popular crypto projects dealing with NFTs include Enjin Coin and Origin Protocol.

Stablecoins

Stablecoins are a bit of an odd one out. These are coins with a value linked to a traditional currency, such as the euro or the dollar.

Traders use stable coins to trade faster, among other things. It's like this: suppose you trade on a cryptocurrencies exchange, and you expect a decline. Then you can sell your cryptocurrencies for stable coins and hold them in the exchange. Has the bottom been reached? Then you use your stable coins again to buy cryptocurrencies.

Well-known examples of stable coins are Tether (USDT) and BUSD. Both are worth the same as the dollar. Do you use the cryptocurrencies app Binance? The USDT/BUSD in your locker is just real dollars. But you can also use those very quickly if you see a beautiful moment!

Decentralized Finance

The demand for crypto is growing, and that requires tailor-made products. Do you want to trade, borrow or lend cryptocurrencies, and do you not trust a third party? Then you can do this decentrally, from person to person. Decentralized Finance DeFi is the collective name for projects that offer this type of service. Popular DeFi coins include Uniswap, SushiSwap, Aave, and Synthetix Network.

3. How Do You Get Cryptocurrencies?

Owning cryptocurrency is simple! Download the handy all-in-one app Binance, and you can get started in three simple steps, within 1 minute and from 1 dollar.

     A. How does it work in short?

     B. Download Binance and open a free account.

     C. Deposit from 10 Dollars to get started trading.

     D. Start trading Cryptocurrencies!

4. What Should You Pay Attention To When You Start With Cryptocurrencies?

You now know the basics, but how do you start with crypto? Below we give you some general tips. We recommend that you understand the basics fundamentals of crypto first.

New to the wonderful world of cryptocurrencies? Start small, for example, with 10 Dollars. You can always build up.

Determine your strategy. A popular strategy is Dollar Cost Averaging (DCA). Periodically invest a fixed amount in cryptocurrencies, for example, 50 dollars per month in bitcoin.

5. What Can You Do With Cryptocurrencies?

The short answer: a lot. Of course, this also differs per cryptocurrency. Below we give you some common use cases of cryptocurrencies.

Pay

You can use cryptocurrencies to pay for products and services. The best-known example of this is home delivery. They have been accepting bitcoin as a payment method for years. And actually, almost every restaurant in the United States is connected. Secretly you can pay indirectly at many restaurants with bitcoin!

Do you want to pay with cryptocurrencies in other places in other countries? Then you have to search well. Fortunately, there are more and more locations where you can go with your crypto coins.

Investing

In addition to paying, you can also trade in cryptocurrencies. You can compare that to the stock market. You try to make as much profit as possible by buying or selling at the right times.

That is how it works with cryptocurrencies. For example, do you see that bitcoin is falling, but ethereum is rising? Then you exchange your bitcoin for usdt/busd and buy ethereum for it. And if the crypto market is in a dip, you can also exchange your cryptos back for usdt/busd.

With the handy crypto Binance, you can trade at lightning speed. With a small disclaimer: the market is young and very volatile. Therefore, only invest what you are willing to lose and always do your research.

Save

With cryptocurrencies, you can achieve nice returns if you trade well. But did you know that you can also save with it? For example, the value of bitcoin continues to rise in the long run. Therefore, more and more investors buy cryptocurrencies to hold them for a long time. That generally yields more than your savings account.

Due to inflation, your dollars are worthless and less every year, even if you may not notice it so quickly. By saving in crypto coins, you can maintain or increase the value of your savings. That is not financial advice, by the way, because you can also lose money with cryptocurrency. Here too, the following applies: read carefully before investing.

6. When To Invest In Cryptocurrencies?

There are thousands of cryptocurrencies, and dozens of coins are added every day. How do you see the forest through the crypto trees? At Binance, you trade in more than 55 popular cryptos. Of course, we do not give you financial advice, but we list many good coins mentioned in this article.

7. When To Buy Cryptocurrencies?

The best moment? That's today. No kidding, determining the right moment is incredibly difficult. Ideally, you want to buy at the bottom and sell at the top. But there's more luck in that than wisdom! However, there are tools that you can use to strike at the right point. 

8. Long or Short Term?

If you invest in cryptocurrency, you must have a strategy. Ask yourself some questions first. Do you want to be busy trading a lot or a little? Do you want quick results, or is your focus more on building wealth in the long term?

Day trading is popular if you have a focus on the short term. Day trading means that you trade actively daily: you buy at a low price and sell at a high point. But the risk, if you trade a lot, is that it is difficult to determine the bottom or the top.

Buy and hold is a great strategy if you have a long-term focus. You don't have to worry about daily price movements. However, the disadvantage is that it can sometimes take longer before getting a nice profit.

9. What Are The Risks Of Cryptocurrencies?

Investing is always a risk. Crypto is no exception. So what do you have to think about?

Volatility

The cryptocurrency price sometimes moves up and down more than a rodeo bull at the fair. This volatility is also known as volatility. Expect 10 or 20 percent movements in a day, both up and down. This is a risk but, at the same time, an opportunity.

Regulation

Cryptocurrency is a new development. Governments sometimes find cryptocurrency difficult to place. Is it a means of payment or an investment? Do you have to charge tax on it, and how?

For example, some countries charge a high tax on profits from crypto trading, like India's Imposed 30% Tax on Proceeds of Digital Assets. Or take China, which has banned bitcoin mining. Such developments in many countries can have a negative effect on cryptocurrencies.

But regulation can also be an opportunity. Will there be clear laws and regulations? Then that gives legitimacy to the crypto sector. That can be a motivation for some investors to invest.

Scams

Where there is money to be made, there are always pirates on the coast. Platforms that promise you sky-high returns may be fake and only after your money. Do you want to invest in bitcoin? Then make sure that you do this with a reliable platform. For example, a reliable World Well Known Biggest Exchange is Binance US. 

10. Are Cryptocurrencies Safe?

In general, most major cryptocurrencies are safe. Coins are secured by blockchain technology. To hack a blockchain, you need more than half of the total computing power of a network.

The bigger a network is, the harder it is to hack. Think of Bitcoin, ethereum, and Binance Coin (BNB) coins. So it is virtually impossible to attack a cryptocurrency network, especially when it comes to large coins.

Know What You Spend

We recommend that you only invest an amount in cryptocurrency that you are willing to lose. Cryptocurrency prices are very volatile. You can make a lot of money, but you can also lose it. At the same time, we believe that crypto is one of the most attractive investments you can make.

If you want to buy cryptocurrencies, do your research. Read news articles, view technical analysis and find out how crypto works. And who knows, you might convince your relatives at the next dinner!

Law Career: 4 Tips How To Become Successful As A Female Lawyer

It is difficult enough to become a successful lawyer these days. There is such high competition for lawyers and few vacancies available for new lawyers. Those competing for positions offered by highly selective employers must be graduates from high-level law schools with excellent CGPAs and strong internship portfolios.

In addition, they usually require recommendations from law professors and former employers. Of course, those who want to become full-fledged lawyers rather than just law graduates must also pass the state exam. All of these bring years of challenges. But there are even more issues presented to females interested in pursuing law careers.
As with most fields across the country - especially in male-dominated fields the law profession is riddled with sexism. Female lawyers are often not taken as seriously as their male colleagues, both by their employees and their potential clients.

In addition, talented people can be directed to specialties they are not interested in, as those specialties are considered traditionally feminine. That said, let's examine some tips created for female lawyers. The more females are ready to take on the challenges presented to them as female lawyers, the easier it will be to succeed. Here are the 4 Tips How To Become Successful As A Female Lawyer. 

1 - Network

The network is essential that all lawyers are ready to network, and this starts quite early in a lawyer's career. When young females firstly enter law school, they need to build good relationships with their professors.

Someone who starts as your classmate can become an influential professional in just a few years. It is vital for female lawyers, who are often isolated from their male colleagues due to sexism and must make strong connections to succeed in the long run.

While female lawyers should work with other female lawyers, it is a good idea for female law students and young lawyers who are just starting to look for mentors. Many experienced female lawyers are willing to mentor young female lawyers, making sure they have everything they need in terms of resources.

If you are in the early stages of your law guardianship, you should consider this when choosing a law school. Which law schools have female professors who specialize in your field? Which law schools have a strong crop of female alums? Keep this in mind when making your final decision.

2 - Challenge Yourself

As a female lawyer, you already regularly have to deal with external challenges. While many external challenges are beyond your control, you can control how you respond. That said, the challenges for lawyers may be a little different from the challenges presented to those in other fields. For example, young lawyers may want to volunteer their services to challenge pro bono cases.

Additionally, suppose you're trying to challenge yourself while still in law school. In that case, you may want to focus on the internships you're applying for. Some internships are more challenging than others, and you need to make sure your resume shows that you're not afraid of a complex case. In addition, those still in law school should research several specialties before deciding what type of law to practice.

3 - Wisely Choose Your Specialty

As mentioned, many female lawyers are forced to specialize in types of law in which they are not interested. It is often done because those law specialties may be more associated with female lawyers. But the reality is those female lawyers can exercise any law, just as male lawyers would be. The great thing about trying out different specialties during law school is that you can feel more confident in your final decision.

Not all female lawyers will be drawn to types of law specialties that may be more emotional than other types of law. Incidentally, the reasons why women prefer certain specialties over others may differ. Some people believe in making a social difference and becoming a human rights lawyer. Others may be more interested in pursuing more lucrative specialties. 

For example, divorce law is very lucrative; with between 40% and 50% of all marriages ending in divorce in the United States, there is much employment among female lawyers in this field. It's acceptable for lawyers, women or otherwise, to pursue more lucrative fields. Studying law requires a lot of time, money, and education. You have to make sure that you do what you can to take advantage of it in every way possible.

4 - Expect To Be Underestimated

Exercising the law as a female has a significant advantage and a disadvantage. The competition often underestimates female lawyers. The law often revolves around debating and competing with others, whether the person across the aisle is a prosecutor or the representative of your ex. Clients. While it may be hard to accept being underestimated as a lawyer, you can take those who underestimate you and turn their flaws into your strengths.

For example, many older lawyers don't want to be seen as unkind to women or overly harsh on them. That means they might make it easy for you as a female lawyer initially. They may not make that mistake more than once after you beat them, but you should take advantage of the time they underestimate you.

There is no denying that female lawyers face more challenges than male lawyers do not experience. Female lawyers will almost certainly face sexism, and for that matter, they may feel frustrated and underestimated throughout their careers. But with these tips in mind, at least female lawyers can prepare for these challenges. With preparation, you can be ready for the worst challenges and ensure you succeed.

NFT Legal | What Are The Legal Issues With NFT (Non-Fungible Tokens)

NFT Legal  

Suppose you've been keeping up with technology news lately. In that case, you may have stumbled upon the latest hype in the world of distributed ledgers and cryptocurrencies: the rise of the non-Fungible token (NFT). 

It's an exciting development. For example, the World Economic Forum expects 10% of global GDP to be stored on the blockchain in six years.

The digital artwork Beeple was sold for $ 69.3 million. A virtual card of "Homer Pepe" (a mix of Homer Simpson and Pepe the Frog on a digital playing card) recently sold for $320,000. Nike has filed a patent that allows consumers to scan whether unique sneakers are genuine. The world is getting acquainted with NFTs. What are they, and what is legally interesting about these digital tokens?

What is an NFT?

NFT makes it possible to confirm the authenticity and (alleged) ownership of digital data (and any physical objects linked to it) using digital certificates. NFT stands for Non-Fungible Tokens. It is a method of tokenizing assets.

A token is a programmable digital unit of value stored on a blockchain. There are different types of tokens, and they can represent anything from coins to stocks, from goods to loyalty points.

Tokenization is, therefore, an act of recording a digital unit of value on the blockchain. The tokens can represent different things and adhere to different rules. Popular standards (the set of rules defined by the developer on which the nature of the token depends) for tokenization are the ERC-20 standard and the ERC-721 standard.

These standards can be used for different types of goods. ERC20 can be utilized for replaceable tokens or fungible tokens. Fungible goods are, by definition, exchangeable. It doesn't matter which specific item you buy or sell – Euros are convertible, just like silver, gold, oil, or grain. It doesn't matter which grain or euro coin you have: every item represents the same value.

The ERC-721 standard, on the other hand, is used for non-replaceable tokens, non-fungible tokens. Non-fungible goods are therefore not replaceable. The goods are unique. Think of a silver necklace or a painting, a signed book, or a football picture with the signature of the football player. It cannot be replaced by the unique creativity it has, or represented, or precisely by the unique signature it bears. The value is not in the item itself but in the uniqueness and authenticity it represents.

Goods tokenized with an NFT are thus digitally guaranteed uniqueness and authenticity. The NFT contains a cryptographic hash function. The blockchain can check the code so that the unique identity and ownership of the NFT can be determined.

The idea behind the NFT is that of scarcity. Non-replaceable, digital works can thus be traded with the notion that the value of the items lies in their uniqueness. Anyone can still trade the football tickets or copy the painting, but there is one unique digital version of that. The rarer the NFT, the more value. So just like the signature on the football ticket, the NFT itself is the signature of the content creator, making it scarce, unique, and valuable. At least, that's the thought.

Copied Digital Files

And that brings a lot of new possibilities that, at least in theory, can trigger a new revolution. Not just for registered property, real estate, or shares. But for basically every possible asset or digital file.

For example, digital files are, in principle, infinitely reproducible. A song, movie, image, in-game items, piece of text, or source code: it can all be copied. But who owns that digital data? Does the digital file belong to one owner, and the rest is an illegal copy of it? Or is it all self-contained data, owned by everyone? And what if you want to transfer a digital file – how do you know that the transferring party owns it and is authorized to transfer it?

This cannot be said with 100% certainty based on the digital file itself. This can be met with NFTs. NFTs can make digital files artificially scarce. A digital file can become 'unique and make it non-replaceable.

NFT Against Counterfeit Goods

But NFTs can also offer a solution in the offline world. Artworks, designer clothes, unique sneakers, collectibles. NFTs can be used to assess whether it is genuine or counterfeit. It infringes on trademark rights, design rights, copyrights, or patent rights.

Does an NFT provide a digital certificate of ownership and authenticity or just a receipt?

NFTs thus offer a kind of digital certificate based on the blockchain. Digital and physical objects can be verified for authenticity and ownership.

However, an NFT is not a digital title for the original. It does not give any actual ownership claim. It's just a receipt, a digital receipt, that you own a signed version of something—not the real thing itself. So while the idea behind the NFT is scarcity, this is just an illusory scarcity.

After all, whoever is the creator of the digital file tokenized in NFT might also make more copies of the work and sell these 'unique' versions. Although it dilutes the value of the NFT, if that copy has already been sold, it has no consequences for the original maker. In other words, more unique versions of the same resource can be created.

Anyone could tokenize a Picasso painting or an expensive pair of sneakers that you don't own with NFT. That doesn't mean you own the tokenized object in question. You only hold the digital certificate that you have linked to it. In short: perhaps you are not buying a unique item, but only a unique receipt.

Nevertheless, this offers countless possibilities. Not only for art, collectibles, or registered property but in fact, everything can be recorded digitally. NFT can also provide a particularly welcome solution for counterfeiting by rightsholders.

NFT Platforms

However, NFTs are not without risks. NFTs can be purchased and created online through platforms such as OpenSea, Rarible, SuperRare, Mintable, ThetaDrop, and KnownOrigin. As a holder of an NFT, you depend on the relevant platform for the sale of products. This is immediately referred to as vendor lock-in.

And that brings me to another problem. The networks are technical infrastructures and prone to hackers, corruption, scams, bugs, and human error. As with cryptocurrencies, various possible problems can lead to losing access to the NFT.

What if an NFT platform is "flat"? What if an NFT company steals your Ethereum and cannot be found? What if you save an NFT incorrectly? What if you have lost access to your wallet? What if your wallet has been hacked?

Moreover, the question is how rare a (digital) object actually is since it may be the only NFT on one blockchain but can also be tokenized on another blockchain.

Ownership Verification

If you ask me, there are still some challenges to making NFTs commonplace. As far as I'm concerned, one of the most important issues is verifying ownership. Based on the NFT alone, you cannot be sure that the object actually belongs to the person offering it on the aforementioned NFT platforms (or elsewhere).

I expect there will still be some claims related to the healing of objects by linking them to an NFT without that party actually being the owner of the actual object.

Money Laundering

Another problem, which also plays a role with cryptocurrency, is money laundering. The amount obtained can be justified by creating an NFT and buying or selling it with an anonymous wallet, despite the fact that the NFT was made with black money.

In short: NFTs seem like an excellent new development. However, I still see some legal snags before they could actually become commonplace.

What Are The Possibilities of Blockchain and Crypto Assets?

Blockchain And Crypto Assets

Blockchain and crypto assets have become an integral part of our digital economy. Utilizing the blockchain's distributed ledger, we have a technology that enables secure transactions, even between parties that do not know and do not trust each other. Trusted third parties such as banks or civil-law notaries have become superfluous.

 

Blockchain also provides excellent opportunities in terms of security and automation. Bitcoin is the best-known implementation on the blockchain as a virtual currency or cryptocurrency. We are also familiar with other crypto assets, such as Monero, Stablecoins, CBDCs, Privacy coins, governance tokens, utility tokens, and NFTs. In this Article see the possibilities of crypto assets and blockchain, and we keep a close eye on developments.

 

Blockchain And Crypto Legislation

 

Legislation is often not present, or only to a limited extent. Therefore, many parties involved in blockchain or crypto assets seek help setting up structures for companies or organizations in the tokenization of capital or wonder whether they need registration or license.

 

Exchange services and providers of custodial wallets may be subject to specific regulations, such as anti-money laundering legislation. 

 

Legal Qualification of Crypto Assets

 

How crypto-assets are legally qualified is of great importance in determining whether, and if so, how they can be transferred, encumbered, seized, or executed. Under contract law, the bitcoin system ("Bitcoin" instead of bitcoins) can be seen as an – implicit – multi-party agreement, the content of which is determined by the technology. It is likely that this also applies to other crypto assets.

 

From a property law perspective, bitcoins can be seen as a piece of software to which the MIT open source license applies. Others think that bitcoin resembles a 'thing' or an absolute 'property right.'

 

We have argued in the literature that bitcoins are a relative property right. The case law is not unambiguous. For example, bitcoins are regarded as a medium of exchange and ether as a good. On the other hand, bitcoins are considered to have characteristics of a property right. This qualification means that a claim for bitcoin payment in bankruptcy is eligible for verification.

 

Many people think differently about this; for example, it is argued that bitcoins are incorporeal goods. In Some Countries, the transfer of bitcoins takes place exclusively under contract law. In some countries, legislation is reportedly preparing to give cryptocurrencies property law status.

 

Another approach is to equate not so much the cryptocurrency itself but the carrier of cryptocurrencies (in which claims are embodied) with securities (bearer paper). But, so many wallets and so many crypto assets, so many approaches. The last egg has not yet been laid.

 

KYC For Crypto Wallets And Exchanges

 

Apart from the qualification of cryptocurrencies, some concrete laws and regulations can apply to cryptocurrencies. For example, anonymous transactions on crypto exchanges are prohibited under anti-money laundering rules.

 

Crypto wallets are also required to have a KYC ("Know your customer") policy. Because personal data is processed and many other anti-money laundering obligations may also apply.

 

Additional obligations also apply in some countries, such as a mandatory license from the local authorities and internal supervisory obligations. In addition, it may be mandatory to draw up a prospectus. 

NFT | What is NFT | What Are the Opportunities and Legal Challenges in NFTs

Non-Fungible Tokens - NFT

Bitcoin and many other digital currencies are becoming popular as we enter digitalized society. Many hold that cryptocurrencies will ultimately replace the traditional paper currency notes.

However, Bitcoin is the flagship cryptocurrency, another increasingly dominant commodity is NFT, which means the non-fungible token that is almost like a digital form of a collectable. 

Non-fungible Token (NFT) is now at the top of the topic among the digital world, soon after its introduction to the fastly developing and changing whole digital world. 

Background - NFT

NFTs came into the market in 2012, but it's grown and became popular in the crypto community in 2017 when Dapper Labs company started selling NFTs linked to unique cartoons digital cats known as Crypto-Kitties. At that time, people went crazy for these pretty digital kitties. 

What is NFT?

NFTs are blockchain that is based upon units of value or "tokens", which have a unique ID linked to an underlying digital asset. It's a cryptographic token that describes something that cannot be changed. NFT is a digital asset representing real-world objects such as music, videos, art, and in-game items. Ethereum blockchain is most commonly used for an NFT, but it is also held on many others blockchains. 

It is composed of software code in a "smart contract". The smart contract consists of details of the underlying physical or digital assets to which the NFT relates and the rights and rules attached to the NFT.

What Are the Opportunities and Legal Challenges in NFTs 

The digital assets known as "Non-fungible Tokens" (generally known as "NFTs") have gained significant public attention. They are presently one of the hottest topics amongst tech companies and legal advisors. There is no doubt that NFTs generate massive opportunities and can revolutionize whole industries such as the industry of:

 

• Art
• Media
• Entertainment
• Sports.

 

NFTs create new opportunities and markets for innovators, investors, brands, musicians, artists, and consumers. However, a wide range of legal challenges and issues can come into play depending on the intent of the parties involved and the structure of the asset.

NFTs Given that now lay the base for ownership rights and a new class of assets, a careful and thorough analysis of the underlying legal challenges is required from those who issue and sell/trade the tokens and those who will buy obtain them.

Here is includes Key Legal Challenges and Issues include how NFTs can be categorized: 

 

• Anti-money laundering
• Sanctions implications
• Intellectual property rights
• Cybersecurity concerns and;
• State laws governing virtual currencies. 

Finally, it remains to be perceived whether the NFT boom of 2021 will continue in 2022. If the NFT is here to stay, its use will assuredly lead to numerous interesting legal challenges.

Therefore, we suggest that NFT buyers and issuers must follow these developments thoroughly, as many regulators already have taken note of the growth of NFTs. We also expect the upcoming interesting copyright-related disputes to arise in the future that will give further clarity on how to deal with NFTs.