미쉘원홀딩스(주)

NFT Operation Method

How Does NFT Work?

ERC721 is a non-fungible token (NFT) standard on the most commonly used Ethereum blockchain. Other than Ethereum, NFT can also be created in other blockchains that support smart contracts through NFT tool and support.

EOS, NEO, and TRON now have their own standards for NFTs. The standardization of NFT issuance guarantees a higher degree of interoperability. A smart contract is used to add to NFT detailed properties such as an ownership ID, security file link or rich metadata.

Blockchain, along with NFT, promises invariability to prove the digital ownership of an asset. A public marketplace like OpenSea handles NFT transactions. A buyer can connect to a seller through this market. The value of an NFT fluctuates depending on market demand and supply.

NFT Ownership

When a user purchases an NFT-based digital art with a cryptocurrency, the user receives the artwork related to the unique token. The transaction is listed on the blockchain to provide a permanent purchase record and proof of ownership.

The NFT owner of digital art can use this to display on computer, TV or digital frames. The owner can sell it whenever needed. Now a question may arise.

Was there no one who could take screenshots or copy from the internet? Yes – the answer to this question is yes. Anyone can easily capture screenshots or fabricate images. But fortunately the blockchain makes the screenshots and copied images void by still proving the ownership of original art.
The ownership of NFT can be transferred only when the blockchain is used to record approved transaction only with a NFT owner’s private key. Another instance is printing photos again. The number of reprinting is not important because the original photo has an invariable proof of ownership.

Applications of NFT Copyright

Owning an artwork copyright comes with two cases : one — a purchase owns a copyright, the other — an artist owns a copyright. Generally speaking, a collector who has purchased an item is entitled to have a copyright unless otherwise clearly specified for an artist to maintain the copyright.

In this case, the purchaser cannot make or distribute the corresponding duplicate when the copyright belongs to the artist. For example, it is not allowed to take a photo of an item, take its screenshot, make the corresponding duplicate into a postcard or make reprints.

What are Examples of NFT Applications?

NFT는 어떻게 작동합니까?

ERC-721은 가장 일반적으로 사용되는 이더리움의 대체 불가능한 토큰 표준입니다. 이더리움 외에 NFT는 NFT 도구 및 지원을 통해 다른 스마트 계약 지원 블록체인에서도 생성할 수 있습니다. EOS, NEO 및 TRON에는 이제 NFT 표준이 있습니다. NFT 발행의 표준화는 높은 수준의 상호 운용성을 보장합니다. 스마트 계약을 통해 NFT는 소유자의 ID, 보안 파일 링크 또는 풍부한 메타데이터와 같은 세부 속성을 추가할 수 있습니다. 블록체인은 NFT와 함께 자산의 디지털 소유권을 증명하기 위해 불변성을 약속합니다. OpenSea와 같은 공개 마켓플레이스는 NFT 거래를 처리합니다. 구매자와 판매자는 이러한 시장을 통해 연결할 수 있습니다. NFT의 가치는 시장의 수요와 공급에 따라 변동하기 쉽습니다.

NFT 소유

사용자가 암호 화폐를 사용하여 NFT 기반 디지털 아트를 구매하면 고유한 토큰과 관련된 예술 작품을 얻습니다. 거래는 블록체인에 등록되어 투명하고 영구적인 구매 기록과 소유권 증명을 제공합니다. 디지털 아트의 NFT 소유자는 이를 컴퓨터, TV 또는 디지털 액자에 표시하는 데 사용할 수 있습니다. 소유자는 필요할 때마다 판매할 수도 있습니다. 이제 질문이 생길 수 있습니다. 이미지를 스크린샷하거나 인터넷에서 복제할 수 있는 사람이 아무도 없었습니까? 예, 이 질문에 대한 대답은 예입니다. 누구나 쉽게 스크린샷을 캡처하거나 이미지를 위조할 수 있습니다. 그러나 다행스럽게도 블록체인은 여전히 원본 아트의 소유자임을 증명하여 스크린샷과 복사된 이미지를 무가치하게 만듭니다. NFT의 소유권은 블록체인이 NFT 소유자의 개인 키에 의해서만 승인된 거래를 기록할 때만 이전될 수 있습니다. 또 다른 비유는 사진을 다시 인쇄하는 것입니다. 원본 사진에는 불변의 소유권 증명이 있으므로 재인쇄 횟수는 중요하지 않습니다.

NFT 저작권 적용

예술 작품의 저작권을 소유하는 두 가지 경우가 있을 수 있습니다. 하나는 구매자가 저작권을 소유하고 다른 하나는 아티스트가 저작권을 소유하는 것입니다. 일반적으로 아티스트가 저작권을 유지하기 위해 명시적으로 언급하지 않는 한 항목을 구입한 수집가가 저작권을 얻습니다. 이 경우 저작권이 아티스트에게 있는 경우 구매자는 해당 사본을 만들거나 배포할 수 없습니다. 예를 들어, 항목의 사진이나 스크린샷을 찍거나 해당 복사본을 엽서로 만들거나 재인쇄하는 등의 행위는 허용되지 않습니다.

NFT의 사용 사례는 무엇입니까?

Game Sector

The global gaming industry creates enormous amounts of revenue mainly in three market subset : PC, mobile and console. As of 2018, video games generated US$134.9 billion annually in global sales.

The virtual economy has thrived for years. Games such as Fortnite and World of Warcraft are the mainstream of the global games market. Marketplace, currencies and in-game items remain as a major focus of these games and they are needed for a gamer to level up in the game play or to proceed further.

A player can transfer an in-game asset safely and can prove its authenticity through a blockchain game. NFTs provide solutions to the digital ownership of a unique and scarce in-game asset. A user is also given the opportunity to participate in the governance to determine the future development of a game.

Sports

The blockchain provides an effective solution to remove forged tickets and goods in the sports industry. The blockchain implements invariability to prevent forgery with the use of NFTs. Tokenized sports game tickets issued from the blockchain make a perfect case study of NFTs in sports.

All games provide the audience with a similar ticket but each game retains unique information on the owner registered on the blockchain.

Art

A digital artist finds it difficult to maintain the copyright of an artwork. This issue can be easily solved through NFTs.

A user purchases a creation and can mark the corresponding asset proudly in the virtual space where the entire record is contained.

Copyright information may include the artist’s detailed information, the date of a source, the previous owner and the asset value.

Media and Entertainment

The internet has caused a vast number of frauds related to duplicate content and copyright infringement. The entertainment industry has been fighting this fraud for a long period of time. Blockchain and NFT have emerged to enable each movie or media to be added to the blockchain with NFT.

This method can be helpful in NFT preventing a file from being copied or shared without permission. Besides, NFT provides a certificate of origin, therefore, is also used to remove fake news.

Real Estate

With the help of NFTs, actual assets such as real estate are tokenized in the blockchain.

NFTs guarantee a smooth transaction during the home buying/selling process without the intervention of a third party.

Use of NFTs brings no possibility of a conflict over the ownership of land or other assets.

Growing Popularity of NFT MARKETPLACE

With their wide use cases and benefits, non-fungible tokens help businesses with fraud detection, copyright issue, forged products and achieve cost savings for people who manage individuals and personal data.

Besides, with the ability to prove digital ownership, NFTs is very popular among digital artists, game publishers, luxury brands and other digital content producers.

They are taking NFTs as a tool to step into the global market to maximize profits in their artwork.

With NFTs gaining global popularity, the demand for the NFT market as media for NFT transactions has been on the rise.

NFT Marketplace Business Model

This is a commission-based business model. The NFT owner (mostly digital artists, game publishers and crypto lovers sells NFTs in the NFT marketplace.

NFTs are a blockchain-based token that represents digital assets such as artwork, music, videos, GIF, games or digital assets like other similar collections.

NFTs are used to identify the ownership of these assets and the NFT owner can sell NFTs by exchanging them with cryptocurrencies in the NFT market.

Conclusions

There are two types of NFT. Imagine that you are a digital artist or a crypto lover. In this case, you can construct NFTs that represent digital assets to protect the ownership with a copyright and participate in the NFT trade.

Then, start-up companies, enterprisers or interested businesses can also launch their own NFT marketplace to become a marketplace owner. Businesses can make their own marketplace and sell NFTs directly to marketplace users.

Besides, they, as a marketplace owner, can make good profits with commissions whenever selling NFTs through the NFT marketplace supported by some NFT owners.