Deed

== Non-fungible tokens as deeds ==

=== Background of use-case ===
[[Blockchain|Blockchain technology]] has emerged with the potential to innovate and support the function of deeds in specific contexts. By design, blockchains contain an immutable [[ledger]] of transactions, recording transfers of information among users. Within this system, a particular type of transferable object, known as a [[Non-fungible token|non-fungible token (NFT)]], can be created. These NFTs are unique, verifiable, and protected against arbitrary tampering, thanks to the immutable nature of the blockchain. By incorporating [[metadata]] (additional information embedded in the object), NFTs can be tailored to reference and represent a wide range of assets in both digital and physical worlds. The blockchain’s immutability, proof of transfer and data transparency (information on the blockchain is generally publicly available to view) provide functions akin to those of a notary, such as ensuring the integrity and permanence of records. However, it is important to recognize that it does not replicate the full scope of legal authority and personal verification typically associated with notarial services. Nevertheless, proposals exist to further develop blockchain infrastructure, potentially expanding its use as a notarial mechanism in certain applications.<ref>*{{Cite web |title=ERC-721: Non-Fungible Token Standard |url=https://eips.ethereum.org/EIPS/eip-721 |access-date=2023-11-27 |website=Ethereum Improvement Proposals |language=en}}
*{{Cite web |last=Pinto |first=Rohan |title=Council Post: A Blockchain-Based Digital Notary: What You Need To Know |url=https://www.forbes.com/sites/forbestechcouncil/2019/11/12/a-blockchain-based-digital-notary-what-you-need-to-know/ |access-date=2023-11-27 |website=Forbes |language=en}}
*{{Cite journal |last1=Kleinaki |first1=Athina-Styliani |last2=Mytis-Gkometh |first2=Petros |last3=Drosatos |first3=George |last4=Efraimidis |first4=Pavlos S. |last5=Kaldoudi |first5=Eleni |date=2018-01-01 |title=A Blockchain-Based Notarization Service for Biomedical Knowledge Retrieval |journal=Computational and Structural Biotechnology Journal |volume=16 |pages=288–297 |doi=10.1016/j.csbj.2018.08.002 |issn=2001-0370|doi-access=free |pmid=30181840 |pmc=6120721 }}
*{{Cite journal |last1=Dias Menezes |first1=Leonardo |last2=de Araújo |first2=Luciano Vieira |last3=Nishijima |first3=Marislei |date=2023-08-01 |title=Blockchain and smart contract architecture for notaries services under civil law: a Brazilian experience |url=https://doi.org/10.1007/s10207-023-00673-3 |journal=International Journal of Information Security |language=en |volume=22 |issue=4 |pages=869–880 |doi=10.1007/s10207-023-00673-3 |issn=1615-5270 |pmc=9961299 |pmid=37360929}}
*{{Cite web |date=2022-05-09 |title=Notarize documents on the Ethereum Blockchain {{!}} AWS Database Blog |url=https://aws.amazon.com/blogs/database/notarize-documents-on-the-ethereum-blockchain/ |access-date=2023-11-27 |website=aws.amazon.com |language=en-US}}
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=== Use-case in practice ===
The [[New York State Bar Association]] has stated that blockchain technology can be employed "to hold and secure records to land deeds"<ref>{{Cite web |last=Jennifer |date=2022-10-24 |title=The Business of Law: On the Verge of Disruption |url=https://nysba.org/the-business-of-law-on-the-verge-of-disruption/ |access-date=2023-11-27 |website=New York State Bar Association |language=en-US}}</ref> John Morton, attorney at [[Pillsbury Winthrop Shaw Pittman]] told ''Fortune Magazine'' that NFTs "operate "in many respects exactly like a deed would in real estate transactions"<ref>{{Cite web |title=How crypto could help regular people become real estate tycoons |url=https://fortune.com/2021/05/20/real-estate-crypto-nfts-what-is-an-nft-tokenization-non-fungible-token-houses/ |access-date=2023-11-27 |website=Fortune |language=en}}</ref>

=== Legality around NFTs as deeds (or similar property rights vehicles) ===
It is important to note that while instances like the house sales in South Carolina and Florida demonstrate the practical application of NFTs functioning like land deeds in real estate, the legal framework surrounding such transactions remains in a state of development. As of now, the use of blockchain and NFTs to serve a deed-like purpose, as in real estate, operates in a legal gray area, with no direct legal statutes explicitly supporting or regulating this method of property transfer. This emerging field continues to evolve, with legal experts, industry stakeholders, and legislators examining the implications and potential need for regulatory measures. The future of NFTs as a deed or similar vehicle of property rights, therefore, represents a dynamic intersection of technology, law, and property rights, warranting close observation and study as it progresses.<ref>*{{Cite journal |last=Fairfield |first=Joshua |date=2022 |title=Property as the law of virtual things |journal=Frontiers in Research Metrics and Analytics |volume=7 |doi=10.3389/frma.2022.981964 |issn=2504-0537 |doi-access=free |pmid=36091970 |pmc=9458901 }}
*{{Cite journal |last=Fairfield |first=Joshua A. T. |date=2022 |title=Tokenized: The Law of Non-Fungible Tokens and Unique Digital Property |url=https://heinonline.org/HOL/Page?handle=hein.journals/indana97&id=1313&div=&collection= |journal=Indiana Law Journal |volume=97 |pages=1261}}
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