NFTs have appeared as a new way of selling artistic works taking the news by storm. Headlines surprise us with news announcing both new and promising possibilities for authors, as well as sales at astronomical prices. But the novelty and the complexity of its technological base generate doubts. What is an NFT exactly? And what does it imply to be an owner of one. How can we be sure that the one who creates the NFT has the right to do so?
NFTs provide a solid and transparent means of buying and selling. Howevertheir use in connection with creative works must resolve the two issues mentioned above. What rights to the work do people acquire? And what guarantees that the author is the one behind it?
To solve these problems Safe Creative has developed a new functionality: the creation of NFTs that authors or rights holders can sell, give away or auction with the highest guarantees for both themselves and the buyers.
Let’s start at the beginning.
What is an NFT?
It is a unique and unrepeatable code that is generated by blockchain technology. It represents something unique. This code is associated to a blockchain wallet so that it can be transferred, sold or auctioned. The NFT represents a physical or virtual asset and specifically rights to it. It is the title that proves the ownership of rights over the represented asset.
Why people pay so much for them?
Each NFT is unique and unrepeatable and therefore collectible. It can be bought and sold for the value associated to the object. The value depends on factors such as the relevance of the author, characteristics or circumstances of the work and the “scarcity” defined by the NFT. It can be a unique or limited edition copy. It is as if we were talking about a painting exhibited in a gallery, or a unique sculpture. Or a ticket to see a concert, or a specific edition of a photograph or song. The NFT is the property title that validates us as “owners” of that painting or sculpture.
In the case of well-known artists with a large fan base, the prices paid for NFTs they create can reach into the millions.
How can I make it clear what people can do when purchasing my NFT?
One of the main problems with NFTs is that whoever buys them may not know exactly what they are buying, and possibly neither does whoever sells them. The fact that the NFT represents property rights of a work does not mean that whoever buys it can do whatever he or she wants with it. It is necessary to know what the rights over the work are that he or she has acquired. To explain it in a more understandable way: buying a book does not mean now your are now the author. Neither may you edit or distribute copies, or to make an adaptation for a movie script, for example. We only acquire ownership of that copy. As owners we may sell it as a second-hand book. For example, for some first editions of famous books, people use to pay very high prices.
Currently the NFTs do not really make it clear what the owner can do. Rights-acquired information, which may in any case be passed on to the first purchaser, may not be guaranteed to be passed on in subsequent sales. This is because NFTs do not include that information by default. This information may even totally disappear from the web. To solve this problem we have developed the creation of NFTs with a link pointing to unalterable content web address (IPFS). In this IPFS we state the information declaring the authorship of the work together with the description of the rights-acquired.
How can we know that the person behind the NFT is the author or an authorized holder?
You can read of cases of people who have created NFTs of works to which they have no rights. For example people creating derivative works without permission of the original author.
Safe Creative is a copyright registry with over 14 years of experience. Our platform allows creators and original owners of works to register their creative process as well as the final work. Once the the author registers the work, he or she can create NFTs. The registered chain of evidences support the authorship claim of this NFT.
How can I create NFTs in my Safe Creative Professional account?
To generate NFTs from a record, you will need to already have, or install the MetaMask browser extension and have a blockchain wallet with sufficient ETH balance.
- Go to the specific record for which you want to generate an NFT and click “Create NFT”.
- Select the specific characteristics for that NFT: a) Will it be exclusive? (you will not be able to make more NFTs of that work) or not. B) number of copies of a release (one by default). And c) if the NFT is sold to a third party, what royalty fee will be paid into your blockchain wallet (from 0 to 30% of the sale amount).
- Click on “Create NFT”. You will need to confirm with MetaMask the transaction.
Once the NFT has been generated you may click on the “View NFT in Rarible” button where you can put it up for sale or auction. The data in Rarible can take up to two or three hours to update.
The “View NFT license document” button takes you to the IPFS information page which cannot be modified. It details the rights to the work held by the owner of the NFT that represents it. There is also a link that allows the download of the work. Only the current owner of the NFT will be able to download the file.
In your account under “Services – NFTs” there is a list of all the NFTs you have generated.
Safe Creative, with almost a decade and a half of experience in copyright issues, makes it easy for professional users to create NFTs that include information on rights-acquired, allow to establish release numbers of each work or exclusivity of the same as well as the automatic income of royalties on subsequent sales of the NFT. All this with traceability and decentralization of information.