Deconstructing NFTs as Decentralized Digital Property

As one of the many applications of the blockchain, non-fungible tokens (NFTs) are artificially unique digital assets that can be used in a variety of situations and, according to many, are set to revolutionise the digital world and mark a milestone in the evolution of markets in the so called Web 3.0. As objects of property, routed in the blockchain, NFTs promise to replace many institutions of the traditional legal order, including property and contracts in the way we are used to think of. The announced digital disruption will create a convergence in ownership that so far comparative legal scholars failed to observe in state legislation. Against this view, we propose a critical reassessment of tokens, by deconstructing NFTs as digital property and characterise them rather as objects in possession. We believe that, under a variety of use cases, possession better qualifies the relationship between the owner and the NFT and is consistent with a view of digital assets that are not dependent on a specific legal system, while allowing an acceptable degree of legal protection in case of interference with the owner’s prerogatives.