Celso Maziteli Neto and Simon Sun, S.J.D. candidates at Maurer School of Law, recently participated in the World Interdisciplinary Network for Institutional Research (WINIR) pre-conference Workshop titled “Technology and Institutional Change,” hosted in Catania, Italy, on 9/19. They presented their research on the topic of “A Law and Economic Analysis of Virtual Real Estate Recordation,” along with Ph.D. candidates form various institutes.
Their presentation focused on the dynamics of the Metaverse, where users acquire NFTs (Non-Fungible Tokens) linked to virtual real estate parcels. Blockchain technology enables the creation of immutable records representing ownership of these assets. However, despite Metaverse platforms promoting “true ownership” of NFTs, they often grant users precarious access to digital assets, creating what the presenters refer to as an “illusion of ownership.” These platforms retain the authority to terminate user accounts or deny access to NFTs, conflicting with the concept of in rem property rights.This “illusion of ownership” presents significant challenges within the Metaverse, particularly with the emerging trend of virtual mortgage financing and securitization. Regulators must carefully assess and manage associated risks to safeguard the stability of the financial market.
This workshop was part of the main WINIR conference on “Institutional Innovation and Evolution: Challenges to the Modern World Order,” which spanned a week.
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