Suddenly there was a lot of noise about NFT tokens. Tokens offered by artists and influencers suddenly began to fetch thousands or even millions of dollars. What are they and where does their popularity come from? How to sell tokens and make money from it?
● NFT tokens are based on blockchain technology, which offers uniqueness, immutability and the impossibility of falsifying content in the digital world.
● NFT is a certificate of digital authenticity. There may be several copies of a given file or element, but only one will be considered digitally original.
● Trading in NFTs is currently primarily speculative, but new applications for this technology are still emerging.
● Acquisition of NFT means acquisition of ownership, but also acquisition of copyright or property rights to the purchased goods.
NFT – legal regulations
The issue of NFT tokens not currently directly regulated. However, indirectly, inter alia, the Law on Combating Money Laundering and Terrorist Financing of March 1, 2018, as well as the Law on Copyright and Related Rights of February 4, 1994.
In addition, the provisions of the Civil Code of 23 April 1964 apply in many areas, such as civil law contracts.
NFT – what is it?
NFT stands for Abbreviation Non-funqable Tokenthat is, in Polish – irreplaceable badge. Is that so? type of digital certificate With features unprecedented in the digital world – there are unique, technically unchanging and it is impossible to falsify. It is these features that make NFT unique, because the ease of copying, falsifying and breaking any content has so far been one of the most serious weaknesses of the virtual world.
In practice The NFT token can take many forms, but always contains two features. First, Contains text, image, audio, video file or other for it NFT is a certificate of authenticity – confirms that this particular file is genuine.
The second NFTs are always based on blockchain technologywhich guarantees unique features. Blockchain is a type of Internet registry that is accessible to any user of the network that uses strong message encryption (cryptography). By affirming uniqueness in such memorable registers NFT cannot be falsified or brokenand each is a sign unique.
NFT itself was created on a blockchain-based platform at the same time EthereumUnder it, there is also inter alia, cryptocurrency ether.
Due to their characteristics, NFT tokens are used only to verify the authenticity of the file to which they belong – hence the name certificates. This means that the token is associated with the specified file this does not prevent the file from being copied or processed. It is not possible to just fake or counterfeit the badge itself.
As a result, copies of a given graphic or text file can still be distributed on the Internet as before – any Internet user can copy and send a given image or text. But only one copy will value the original Thanks to the integral connection with the NFT certificate. It is not possible to create another certificate for the same file.
Therefore, NFT is compared to the originals of works of art. A painting of the Mona Lisa or a statue of David can be freely copied, but only the originals of Leonardo da Vinci and Michelangelo have a special value – copies whose authenticity is confirmed by independent experts. In the digital world, NFT tokens play the role of these experts.
An exchange that cannot be exchanged
NFT is translated as non-exchangeable tokens and their non-conversion means that it cannot be changed to a single copy or another token. However, it is possible to voluntarily transfer a special token to another person. NFT allows including information about the owner of the specified file which is original.
Thanks to this tokens became a trade – Certificates of authenticity began to be sold and bought in the virtual world, but for real money. Just like real works of art are sold and bought at online auctions.
Acquisition of special NFT does not mean that the buyer also owns the copyright to the file to which the token belongs. The ownership of the original file, as well as copyright and property rights, are discussed here also. It becomes a buyer owns, but is not the creator of this file.
This situation is similar to, for example, the purchase of a unique, unique copy of vinyl record – it has a collection value, but does not mean that you have copyright to the music recorded on the disc. Therefore, any possible transfer of copyright and property rights to an NFT buyer must always be additionally confirmed in writing.
NFT – how to sell?
Due to their uniqueness, NFTs suddenly became very popular digital goods are active, is the same as property rights over other tangible or intangible goods. It made it possible to sell any digital content with a guarantee that it would be only one original and only one owner.
NFT generation is primarily carried out by artists and other creators who can create attractive, unique goods. But Anyone can create NFT for a small fee who decides to have something of unique value and is worth pasting it with a certificate of authenticity. Currently, NFTs are created not only as part of the Ethereum platform, but also on competing platforms – always based on blockchain technology.
Tokens are created and then sold and purchased first through special online exchanges. Because NFTs are assets similar to cryptocurrencies, especially those based on blockchain technology, token trading is becoming more and more popular. cryptocurrency exchanges.
NFT – how to earn?
The NFT market, as well as the technology itself, is an innovation that is rapidly gaining popularity. But at the same time he meets her different opinions of experts and observers. According to many, any NFT-certified goods can be a promising investment. The product purchased today can be resold in the future with great profit. Some NFTs started to get really big money and the whole NFT market became speculative.
They are available at the same time skeptical voicesyou’re paying attention Separation of NFT token ownership and copyright or property rightsand therefore – it is difficult to determine the real value of certified goods. For example, buying an NFT funny picture on the Internet is likely to have the value of only one collector – and not every picture will be as valuable in the eyes of collectors, just as not every material work of art.
However, the opportunities to earn in NFT do not end with speculative trading. Relying on blockchain registers, for example, is possible Coordinating NFT with the collection of license fees. Thus, the creator or copyright holder of a particular product may purchase a specific product a reward each time his work is resold. This is an important perspective, as artists without NFT would often suffer huge losses due to a lack of control over the digital circulation of their work.
in addition can be tokenized not only digital goods, but also physical goods. Thus, NFT can be a certificate of authenticity for an internet meme, as well as for a real painting hanging in a museum. Therefore, in the future, NFT is expected to begin to act as a digital authentication tool for all unique goods.
Newer applications of NFT and all blockchain technology are emerging.
Act of April 23, 1964, Civil Code. Act on Combating Money Laundering and Terrorist Financing dated March 1, 2018.
Main photo source: mundissima / Shutterstock