NFT Phenomenon

       The Non-fungible token phenomenon or known as NFT is currently popular in Indonesian society after a young man named Ghozali, one of the NFT account owners, sold his selfie photo and made a profit of 1.7 million. What exactly is an NFT? NFT is a digital asset that can be used to trade artwork, images, videos, music, games, and so on. Purchasing digital assets through NFTs is done using digital money or what is called cryptocurrency. This NFT has been integrated with a system that is not easy to hack and can record all transaction information. This system is called a digital ledger or Blockchain technology. Blokchain is a type of distributed technology which can track asset ownership, record content data in the form of images and videos created by creators, and sales history very accurately. 

    Nowadays, NFTs are not only used for buying and selling things, but can also be used for auctions, including artworks. An auction is a buying and selling activity that is open to the public with bids that reach the highest price. Auction activities using NFTs are currently a new phenomenon that occurs in the digital era. Auctions through Non-fungible Tokens are quite easy to do, namely by bidding through a website or platform that has been provided. This certainly makes it easier for art activists to monetize their artwork even though there can be a fairly high fee for each offer. The artwork sold can be in the form of digital assets or included in its physical form. The application of auctions through NFTs is also a form of appreciation for works of art because it is not limited by distance, meaning that the whole world can make purchases through this digital asset. 

     Unfortunately, in Indonesia, the use of digital money is still prohibited by the government. However, the government still allows NFT assets to be used as investment instruments and commodities that are traded on long-term exchanges and sold at high prices. This could be because the value of this digital asset is still very volatile, meaning that it can have very drastic gains and losses and is difficult to predict. In addition, NFTs are also at risk of inflation and are prone to being used as a means of money laundering and terrorism financing. The next thing we need to be aware of is that the blockchain technology in NFTs cannot sort out whether the artwork produced is truly original to the owner or not. As a result, not a few works belonging to other people are uploaded without the permission and knowledge of the original owner.

Reference sources: 

Aini. Syifa Barokah. 2023. Lelang Aset Digital Melalui Non-Fungible Token dalam Perspektif Hukum Ekonomi Syariah. Jurnal Kajian Hukum Ekonomi Syariah, 1 (2). 107-117. 

https://www.liputan6.com/crypto/read/4863147/bukan-rp-13-miliar-ternyata-segini-keuntunganghozali-dari-jual-nft 

https://www.kominfo.go.id/content/detail/12388/bi-peringatkan-agar-tidak-jualbelikan-uangdigital/0/berita https://malline.id/cryptocurrency/567922022/sejarah-dan-jenis-nft/ 

Muhammad. Fahrurozi. 2021. Weighing the Urgency of a More Comprehensive Regulation on Non-fungible tokens (NFT). Jurnal Hukum Nasional Vol 52 (2) 189-207.