The specialized media has highlighted NFTs. The non-Fungible Tokens are part of an abstract concept in the world of Internet. These tokens have gone viral due to their high sales value.
This concept, however, began to be developed more than a decade ago through the use of blockchain technology. This technology is relevant in this context and works through blocks of sealed digital data which are then reproduced in the next block with its own sealed content. The blockchain technology also applies to the concept of cryptocurrencies. The objective is to store theses digital files on a safe and decentralized network.
It is significant to clarify that token was initially a term used to refer to a physical element represented digitally. An NFT is a type of token which is represented in a unique digital and non-fungible file. This means that a NFT cannot be exchanged for another, like a currency can. They are unique digital files comparable to works of art and rare objects.
In their conception, NFTs represent a verifiable and digitally rare technique used to ascertain digital propriety of specific intangible and non-fungible assets, commonly used in digital collections which had previously been limitlessly copied.
Consequently, a registered NFT makes any expression in the digital universe a unique, exclusive, and authentic asset due to the unchangeable use of blockchain technology. A use of this technology to register NFTs guarantees copyright to the creators of diverse content and intellectual expression in a digital environment.
This operation makes the visualization and commercialization of digital artwork more practical. The content creator is able to certify the work’s authenticity, thus enhancing their value. The creator of content can also earn from the resale of their content adding more value to their artistic expression and creative efforts. However, it’s important to point out that a NFT is not a sale of the original content or asset, per se, but of a digitally authenticated version.
Other uses of NFTs may also include apps with unique digital items, such as cryptographic art, crypto-collections, and cryptographic games. The latter can be used to represent digital assets of the game, allowing the player to negotiate with third parties in a marketplace, without the need of permission from the game developer.
Currently, the most viral NFTs, the memes,involve millions in transactions. The most expensive NFT in history was the “meme Doge” – a dog picture of a Shiba Inu, sold for 20 million Reais, according to NBC News.
There are diverse advantages in registry in this format for the creators of intellectual content. These include guarantee of acknowledgement of authorship; more control over content; guarantee of resale rights to royalties when the content created is resold.
The NFTs can even broaden the concept of resale rights. At the time the content is filed on a blockchain network, it is possible to set up rules for indemnity of a future valuation and participation in an eventual transfer of ownership, in addition to the registration of authorship itself..
It is important to highlight that the registry of a content (as NFT) does not change the legal perspective on copyright. All rights stated in law continue to be guaranteed to the content creator.
Hence, NFT technology can be an important weapon against copyright infringements as it becomes possible that the NFT identifies and protects the creator of digital content.