Welcome to This Week In Cardano

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Hi Cardano Community,

Welcome to This Week In Cardano - your daily Newsletter covering the major updates in the Cardano Ecosystem!

This is what we have for you today:

• 🎨 The Debate Surrounding Charles Hoskinson's NFT Profile Picture

•  🚀 Future of NFTs

• 💎 Gem of the Day

This Week In Cardano

Your Daily Newsletter covering all major events happening in the Cardano Ecosystem

Unpacking the Debate Surrounding Charles Hoskinson's controversial NFT Profile Picture

Last day, a heated discussion erupted within the Cardano ecosystem about the use of non-fungible tokens (NFTs) as profile pictures.

It all started when Charles Hoskinson decided to use an NFT as his profile picture on social media without actually purchasing it. This decision sparked a debate about the ethical implications of using someone else's NFT artwork without buying it. As the conversation unfolded, it became clear that there are different viewpoints on the issue and that it is an important topic that requires careful consideration.

This is what happened

When Charles Hoskinson received a tweet with a link to an NFT that had been created based on him, he used it as his profile picture on both Facebook and Twitter.

Charles often used NFTs as his profile picture to bring attention to smaller artists and projects in the NFT community. He hass a million followers on Twitter and 300,000 subscribers on YouTube, so he figured it would be great exposure for the "JAR Heads NFTs" project.

The artist behind the "JAR Heads NFTs" project was grateful for the attention Charles brought to their work, and the NFT sold for 10,000 Ada.

However, not everyone was pleased with Charles's actions.

Some people accused him of misappropriating the artwork, and the incident sparked a debate about the ethical implications of using someone else's NFT as a profile picture. The "right click" phenomena with NFTs had suddenly become a hot topic, and people were questioning whether it was ever okay to use someone else's NFT.

This event raises the question of what exactly you are buying when you purchase an NFT.

Understanding what you're buying when you are buying an NFT

From a technical standpoint, NFTs on Cardano are essentially the same as native assets. However, to qualify as a true NFT, a native asset must have unique identifying characteristics and a mechanism to prevent duplication.

But it's important to note that purchasing an NFT does not automatically transfer ownership of the intellectual property rights associated with the image or content depicted in the NFT.

NFTs and the lack of clarity regarding legal rights

NFTs are a relatively new technology, and there are still many questions and issues that need to be addressed when it comes to the legal rights and contracts involved in their sale and use.

As of now, there are no established standards, certifications, or guidelines around the rights and responsibilities of NFT sellers and buyers. Without having such a can help to ensure a clear and fair process for all parties involved. It is also important to understand the distinction between the original IP and the NFT itself, as the sale of an NFT may not necessarily include the rights to the underlying IP.

The lack of transparency and established standards in the NFT space leaves buyers vulnerable to projects that may not provide the level of support they expect, or even disappear altogether (also known as a "rug pull").

Welcome to the concept of Real-Fi NFTs

In his recent video, Charles presents the idea of Real-Fi NFTs.

So what makes Real-Fi NFTs different from the current NFTs?

Real-Fi NFTs differ from current NFTs in that they have features that make them more integrated with real-world use cases and financial infrastructure.

These features include :

Standards: Standardization of NFTs can lead to greater interoperability and durability.

Certification: Certification can increase credibility and trustworthiness of NFTs.

Identity: Decentralized identifiers can establish ownership and identity for NFTs.

Governance: Clear and transparent governance can ensure fairness and stability for NFT holders.

Metadata: Verifiable metadata provides context and information about an NFT.

Regulation: A clear legal framework and agency can ensure the legitimacy and provide a mechanism for dispute resolution.

Conclusion:

NFT space is still relatively new and evolving, and there are currently no established standards.

For its further maturation and integration with real-world use cases, It is important for the NFT space to establish standards that are objective, transparent, and transferable in order to establish the blockchain as a reliable source of truth.

The Cardano-NFT community has the opportunity to lead the industry in creating these standards and templates, which can be adopted by other NFT projects and have legal agency and durability across different blockchain platforms.

Interested in sponsoring this Newsletter?

💎 Gem of the Day 🧵

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.#016: