Chapter 4: Traceability in digital ownership
One of the major factors influencing a wide range of processes in our lives is the way financial and economic systems work. Value and means of storing value have changed over the last 20 years drastically with the growth and market adoption of blockchain and cryptocurrencies. People have understood the value of consensus, one based on transparency and traceability.
The digital creators’ world has been affected by this throughout the last decades, mainly due to the fact that in most cases, a third-party provider managing the relationship between a buyer and a seller has always been present. Adding another layer in the relationship between digital content and a buyer must happen in a transparent context in order to facilitate the growth and trust in the system, which until recently was not possible. However, the NFT technology is now becoming the favorite method of enhancing this relationship where both parties are comfortable with the process, experience, and outcome of buying or selling a digital asset.
The problem of traceability is solved by blockchain with transactions openly available to be tracked or understood. However, digital ownership is still challenging because traceability is still difficult to understand by the mass communities. Digital assests ownership has been problematic as more and more traders and owners are facing issues with ill-intended people trying to copy or steal their assets. It has become very common for artists to have copy-cats, where the community can be missinformed.
Traceability and digital ownership are still problematic in the NFT industry, and companies are working around the world to make the creation and trading processes accessible, transparent and safe for everyone involved.