By Daniel Anstandig, CEO & Co-Founder, Futuri Media
I’ve talked about the potential for NFTs to change the media and broadcasting industries for the better, but new use cases are constantly popping up. There is one application for NFTs that has the potential to create positive change for content creators. One of the biggest problems creators encounter today is preventing intellectual property theft—or the ability to seamlessly transfer IP and copyrights in a sale if the creator desires. NFTs are the answer to this, and can allow for the seamless transfer of intellectual property and copyrights.
NFTs are tokens or groups of unique code that live on a blockchain and cannot be duplicated or altered once minted. Cryptocurrency is fungible, meaning multiple versions of a coin could all mean the same thing. Two Bitcoins are indistinguishable from one another, but two NFTs—even from the same collection—will have a different code and can never be duplicated or multiplied.
Artists used to have to worry about people replicating their work, especially in the digital world where people could easily create copies and sell stolen versions of their art, often without consequence.
Non-fungible tokens enable digital ownership unlike ever before.
Organizations can now sell goods online without risking counterfeit products being sold to consumers instead. In art, creatives can post their content without worrying that it will be stolen. Beeple, an early NFT artist who is now a defining artist of the digital age, sold an NFT in early 2021 for 69 million USD.
These digital assets live on the blockchain, giving them a unique code that can be traced from owner to owner, back to the original artist. Counterfeit Beeple NFTs do exist, of course, but the authentic works can be easily traced back to Beeple himself, and are, therefore more valuable. Apply that concept to other businesses, and you could use NFTs to prevent the sale of counterfeit items online across industries.
For streaming companies and entertainment giants, the seamless transfer of ownership could mean that creatives never have to risk losing their portfolios when a network no longer holds their work in its catalog. Imagine you’re a director, and you’ve licensed your entire portfolio to a streaming network like HBO for a number of years. Once the contract is up, your portfolio would automatically transfer back into your possession because those were the conditions set up within the smart contract.