Many business owners have long since discovered the possibilities of using Blockchain technology to automate and simplify a number of business processes.
However, the world does not stand still and new opportunities for using this technology and earning money are emerging, for example, through the creation of an NFT token, or non-fungible token. Which is now regularly in the news. With some of them being sold at auctions for huge sums.
A recent high-profile example is the release by Sir Tim Berners-Lee, the inventor of the World Wide Web, of a small number of NFTs containing part of the source code of his original internet invention in the form of a fancy time-stamped file. The files come with animated visualizations and a digital poster of the code. Let’s take a closer look at what an NFT token is, how to create one, protect it, what it is for, and of course, how to make money on it?
What is Blockchain and NFT token for?
To understand NFTs, let’s first talk a little about Ghana Phone Number List Blockchain technology, which is primarily recognized as the underlying technology behind the Bitcoin cryptocurrency.
The most innovative part of Blockchain is that it is decentralized: not controlled by any one person or company. It is transparent in the sense that anyone can view the ledgers (if you know where to look). Blockchain technology can be used in several applications and is not limited to cryptocurrencies. For example, it works great in Ethereum smart contracts.
Non-fungible tokens (NFTs) are the latest and most prominent example of the widespread use of this new technology. Once created, NFTs are considered immutable, as the information entered into the Blockchain is permanent and irreversible.
What is an NFT token?
The term “non-fungible token” means unique or one of a kind. Although they both use Blockchain technology, an NFT token is different from cryptocurrencies. Cryptocurrencies like Bitcoin, Ripple, and Ethereum are fungible tokens, meaning that each unit of the cryptocurrency is the same as any other.
Like regular government-issued money, these tokens are fungible and indistinguishable. If you have one unit of Bitcoin, it doesn’t matter which Bitcoin you have. Likewise, a five-hundred-hryvnia note in your pocket has the same value as any other five-hundred-hryvnia note.
NFT Token and Intellectual Property
Owning an NFT is like owning an autographed photo of a movie star pinned to your bulletin board. Only you can own that photo. Likewise, only one person can own an NFT.
However, the original creator of the photograph may own the underlying intellectual property rights that allow him or her to make copies, prints, or derivative works from that photograph.
An NFT is a cryptographic instrument that can prove the ownership and authenticity of an underlying asset. Typically in digital form. Like their cryptocurrency counterparts such as Bitcoin, NFTs are created (or “minted”) and recorded using Blockchain technology. Digital asset and Blockchain platforms. Such as the EX1P digital asset creation platform. Can be used to create and manage NFTs. These NFTs can then be bought and sold on marketplaces that are linked to the underlying Blockchain technology. The uniqueness of the NFT token serves to secure the digital asset.
NFT Examples
For the tech industry, NFTs are not a new technology. In fact, video game developers have been using NFTs in games for years. A notable example of previous NFT applications is CryptoKitties, which was one of the earliest adaptations of non-fungible token technology and allowed players to collect and trade digital cats using NFTs.
At the same time, the copyright for the illustration of all updated mobile phone numbers for the 2024 library cats belongs to the developer company and the emergence of various clone sites can significantly reduce the cost of the original digital asset.
All of these examples can lead to difficulties regarding usage rights, where the owner of the NFT may not necessarily own the intellectual property rights to the underlying creation, or may not have a license to those underlying rights at all.
The Implications of NFTs for Intellectual Property
When considering the intellectual property implications of NFTs, it is important to distinguish between ownership of the NFT and ownership of the underlying intellectual property. The rights granted by the seller of the NFT depend on the rights granted through a license or assignment. And they may vary depending on each NFT.
You may, for example, own a particular photo of LeBron James in the form of an NFT, but the underlying rights belong to the NBA. In the context of copyright. Ownership of the underlying rights is only transferred if the author of the original work expressly agrees to transfer those rights to the owner of the NFT.
Typically, without such an agreement, owning an NFT does not grant ownership of the underlying content or any associated intellectual property rights.
Startup and NFT
The growing interest in NFTs is also driven by the potential to create new revenue streams. NFTs and Blockchain technology offer asset owners the opportunity to generate significant revenue in new and innovative ways. Such as by creating and selling portions of assets as digital representations.
Assets that were previously difficult, if not impossible, to sell, such as bj lists tweets or source code, can be monetized by issuing NFTs. Asset owners can even sell NFTs for a digital representation of a physical asset while still owning (or selling separately) the underlying asset.
NFTs offer exciting opportunities for both digital data creators and sellers and buyers. However, it is important not to forget about intellectual property protection in this flow. Ignoring this issue, there is a risk of not only losing the asset itself and money.
NFT is the best industry to invest in in 2023
According to the online channel Invest-Foresight. Investors invested almost $2 billion in the NFT sector in 2021. Some startups have already managed to pay off.
Experts from CB Insights predicted that in 2022, capital investment in the NFT industry will also continue to grow.
The website of the company that can protect your rights to NFT tokens after purchase not only in Ukraine, but also throughout the world
Being at the peak of NFT sector activity, our Ukrainian patent office SION offers the following unique services for intellectual property protection:
- Analysis of an NFT project for the possibility of losing intellectual property rights (IP) to tokenized objects;
- Development of a strategy for protecting rights;
- Writing smart contracts in compliance with IP protection, taking into account the project goals (license, assignment of rights, sale of content, etc.);
- Recording the fact of the first disclosure of the tokenization object;
- Development of strategies for online payment of royalties;
- Taxation schemes for online payments (“convenient” jurisdictions).
- Attracting and supporting the execution of investments in NFT startups.
