1、 Prepared by Perkins Coie LLPs Blockchain Group*2 Introduction 3 What Are NFTs?13 The NFT Ecosystem 15 Overview of Key Legal and Regulatory Issues Regarding NFTs 27 Conclusion 2 INTRODUCTION Non-fungible tokens(NFTs)have been widely adopted by the sports,arts,music,gaming,fashion,and other industrie

2、s.1 Behind the hype is a fast-developing ecosystem of technical and commercial innovation that is embracing the promise of bridging physical world concepts of uniqueness and scarcity with the digital world.The NFT market has seen enormous growth in recent years,with sales of NFTs reaching$25 billion

3、 in 2021 by one estimate,2 and this is only expected to grow as creators and brands craft their plans for the metaverse in which NFTs are expected to play a critical role.Similar to other new and evolving technologies and concepts in the blockchain industry,there is not a uniform definition of the t

4、erm“non-fungible token.”There are fundamental characteristics,however,that are common to most NFT projects in the marketplace today and on which participants in this ecosystem tend to agree.In essence,an NFT is(1)a unique digital token recorded on a distributed ledger,such as a blockchain;(2)linked

5、to an object,such as a digital image,video,or record;that(3)enables the holder to demonstrate its rights with respect to the linked object.For example,an NFT linked to a digital artwork may enable its holder to access,perform,and display the digital artwork on an exclusive or nonexclusive basis.NFTs

6、 have already resulted in groundbreaking changes to how digital assets are transferred,authenticated,recorded,and stored,and in how users interact with such assets.As with all forms of technical innovation,these changes pose unique legal challenges and questions to participants in this ecosystem.Who