Non-fungible Tokens (NFTs) technology will change forever how royalties are dealt
A Non-fungible Token represents a unique digital item such as art pieces, songs, video shootings of any nature (movies, short clips), photographs, paintings, and even video games.
Also, Blockchain technology is what powers NFTs. Think of a blockchain as a ledger of registries they says:
- Bruno is the author of this song
- Alicia has recorded a version of Bruno’s original song
- John has a copy of Alicia’s version of Bruno’s original song
.. and Blockchain is immutable. Therefore, if Bruno is the author of the song nobody can take that away from him.
Fungibility is an economics term that says that a good or commodity can be interchangeable between parts – it doesn’t happen in NFTs, but digital files, by themselves, can be reproducible millions of times. Also, the rights to reproduce a digital item such as a song or short movies can be assigned in the Blockchain and these rights can be certainly monetised.
Also, NFTs are game changers for creators who live off royalties of their productions.
Take an example: NFL player Tom Brady is very often on television and, pretty much, everywhere. TV companies are often broadcasting his highlights on the news and, therefore, making money out of Brady’s performances – they make the news attractive to most of the audience.
NFTs as trackable digital assets can allow Tom Brady to be paid for the 15-second highlight shown in the late night news program.
For me it sounds fair – personal images also have their rights. If TV is profiting from Brady’s highlights, so should Brady for the seconds of the game that were shown in the news. NFTs can make that happen right now. It’s already a reality.
The power Blockchain is rapidly empowering all kinds of creators, athletes, actors… to keep trace of their creations in this world and controlling the rules for them to be reproducible. This is how it works in practice:
- So, CNN, do you want to play 5 seconds of my song in your commercial? Awesome, pay me this and you’ll have this right. Simple as that.
NFTs are a way to go for all creators. Interested? email@example.com