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Vleppo, Tokel makes NFT smart contracts legally enforceable

By Carine Lee

03:38, 22 July 2022

Classical statue and NFT symbol on a pink background
Vleppo, Tokel makes NFT smart contracts legally enforceable – Photo: Shutterstock

Web3 firms Vleppo, a blockchain business solutions firm, and Tokel, a token platform, have recently made a breakthrough in making smart contracts legally enforceable around the world.

Vleppo, a Malaysian founded firm, said it has developed a blockchain contract management system (CMS) that enables non-fungible token (NFT) owners to create a digital contract that has the NFT’s on-chain identification (ID) embedded directly in the contract.

OpenSea, touted to be the largest NFT marketplace, uses smart contracts and they accept cryptocurrencies such as ETH, SOL, USDC and DAI in their transactions.

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What is a smart contract?

Smart contracts are used in NFT marketplaces enabling buyers and sellers to conduct transactions with each other, without requiring one party to trust the other.

It is s defined as a computerised transaction protocol which automatically executes the terms of a contract when certain conditions are met.

Smart contracts, stored within a blockchain such as Ethereum, allow for the contract to be executed without the need for intermediaries.

As smart contracts do serve their purpose, there are, however, concerns about the actual legal enforceability of smart contracts in relation to NFTs.


0.60 Price
+3.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


0.13 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872


66,743.50 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


171.52 Price
+0.660% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

Giving ‘legal clarity’

Vleppo said the solution finally addresses the concern of NFT owners and blockchain industry about the “lack of clarity on the legal enforceability of smart contracts as related to NFTs”.

It added that there should be a clear understanding that there is a legal contract between the buyer and seller.

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Elements of a contract such as offer and acceptance – need to be satisfied in order for a contract to be considered enforceable, which smart contracts cannot do.

This is where natural contract (real human interaction), which according to Vleppo is expensive, steps in to confirm that the elements of contract are met to make it legally enforceable.

“By comparison, a digital contract or smart contract executed in the Vleppo CMS, where the ID of the NFT is embedded into the blockchain record of the contract, ensures that the link between the NFT and underlying contract cannot be broken,” Vleppo said.

Vleppo added that the solution is blockchain-agnostic, as it is compatible with NFTs on any blockchain, including Ethereum, Polygon (MATIC), and Solana.

Markets in this article

1.0247 USD
0 0.000%
Ethereum / USD
3512.09 USD
2.4 +0.070%
Solana / USD
171.5167 USD
1.1114 +0.660%
0.55997 USD
0.00822 +1.550%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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