Typically, disputes will end up going through the courts — but this can have mixed success.
It’s easy to forget that NFTs remain a nascent technology, and this means that legal systems still lack understanding about how they work. This may mean that the nuance surrounding digital assets may get missed during civil action… but those in the lawsuit will still have to contend with hefty legal bills.
Mattereum — a new protocol that delivers transferable proofs of digital ownership — aims to do things differently. It offers its customers the legal technical capability to create Trustable NFTs for their physical assets, and legally binding mechanisms for dispute resolution that can be enforced in over 160 jurisdictions around the world. Such smart contracts establish a bond between ownership of the NFT and ownership of the physical asset, whether it’s six bottles of red wine, a luxury car or a rare instrument.
While it may appear that this approach takes more time at first, it can have advantages. Offering valid authenticity documentation can significantly increase an asset’s value — and boost the likelihood of a sale. It also creates a solid legal framework for the future.