As ruled by the New York Court, court notices can now be served as NFTs. This is an extremely interesting move forward for the NFT space as a whole. It is certainly one of the most interesting new use cases for NFTs. Already, the late firm ‘Hollan & Knight’ served a defendant in a hacking case with a temporary restraining order through an NFT.
Now, based on a new ruling by the New York court system, court notices can now be served via an NFT. We have already seen the first case on this front and it may be the first of many. Some claim that this case could have a lot of historical value based on the first-time nature of what happened.
The first case was the LCX case, the cryptocurrency exchange that was hacked for almost $8 million. To clarify, LCX’s representatives served the defendant, who is remaining anonymous, with a temporary restraining order that was issued on-chain using an ERC-721 NFT.
LCX stated that this method “was approved by the New York Supreme Court. It is an example of how innovation can provide legitimacy and transparency to a market that some believe is ungovernable.”
While it is unsure what this will hold for future court notices. Although unlikely, it is unconfirmed whether or not these tokens will be sellable by the parties who distribute and use them in court. One Twitter user said that they “hope it’s a soul bound”. To clarify, this would mean that the NFT could not be sold on. It would only be made available to a set amount of people. This would be if the original holder loses wallet information, for example.
If this is not the case, and if in the future these court NFTs are not Soulbound tokens, then just imagine how big some of these sales from major court cases could be…
source: NFT Evening