Discussion on the Security and Transparency of Chair

Chair is the world's first DEX for utility NFTs, where KOLs tokenize their rights and benefits into NFT assets, then trade and auction them. At present, dozens of KOLs have reached cooperation with Chair.

For blockchain projects, security and transparency are the issues that users are most concerned about. This article discusses how Chair addresses these issues from the perspective of technology and law.

From a technical perspective

Security audit by CertiK

Chair is built by a professional team of blockchain experts. According to the latest news, Chair's contract code has passed the security audit of CertiK, the world's leading blockchain and smart contract audit company. No major vulnerabilities have been found. The audit report can be found on the official websites of CertiK and Chair.

CertiK audits blockchain applications and smart contracts through standardized formal verification, and has secured a number of well-known projects including Binance.

Smart contract

All NFT sales or circulation processes on the Chair platform are managed by smart contracts. Smart contracts automatically execute transactions using rigorous algorithms without interference from human factors once the preset conditions are met. NFT creators can set various attributes of their own NFT through smart contracts. Once all NFT attributes are written into the smart contract and put on the chain, you don’t need to worry about breach of contract by either party of the transaction. Compared to traditional sales, the creator of an NFT can attach more contract terms previously difficult to achieve. The NFT creator can also choose to add a permanent royalty code to his NFT. This means that he can not only earn all the income from the first sale of the NFT, but also receive the royalties from every future transaction. Under the supervision of smart contracts, all transactions will no longer require guarantees from a third party, and the entire process will be completely decentralized and transparent.

IPFS storage

IPFS is a new type of distributed hypermedia transmission protocol based on content addressing. It is trying to create a faster, safer, and more open next-generation Internet, and realize a global file storage system with permanent storage and availability of data in the Internet.

Permanence and immutability are among NFT's core values. Chair stores all data of the platform on the IPFS network, and all content is defined and stored based on the content itself. So if something is tampered with, there will be a mismatch when trying to verify the content and knowing that it is wrong. This can ensure the tracking and control of digital assets.

From a legal perspective

NFT + digital assets

Yao Qian believes that "digital assets in the true sense should be native assets that contain full information and are displayed and transferred in digital form."

An NFT comes with all the attributes of digital assets. Chair’s NFTization of “rights and benefits” is the process of converting them into digital assets. In the near future, financial assets, digital identities and rights may all be NFTized into digital assets gradually.

NFT + virtual property

Article 127 of the General Principles of the Civil Law stipulates: "Where the law has provisions on the protection of data and network virtual property, follow those provisions."

Considering the nature of NFT products, they are controlled by the holders to a large extent. It is undisputed that NFT products are virtual property that should be protected by law.

NFT + copyright

"The transfer of the ownership of the original work of fine art and other artwork is not regarded as the transfer of the copyright of the work, but the exhibition rights of the original work of art shall be enjoyed by the original owner." So we can draw the conclusion that there is no binding between copyright and entity. Whether in the real world or on the blockchain, content creators don’t need to worry about copyright risks when selling their works. As a freely definable carrier of works, NFT can restrict the ownership of copyright by writing data on the chain. For example, the creator can authorize the owner of the NFT to for behavior such as making peripheral products. But in most cases, there is no difference in essence between the purchase of an NFT and the purchase of a physical work, except for the content carrier. This also verifies the legality of trading NFTs on the Chair platform.