NFT Ownership and Copyright

Purchasing an NFT grants the buyer ownership of the digital asset, but not necessarily the copyright. In most cases, the creator of the digital work retains the copyright, allowing them to reproduce, sell, and license the work even after the NFT is sold. The buyer, on the other hand, receives a limited set of rights, often only including the ability to display, resell, or transfer the NFT to another person.

This distinction is crucial, as it prevents NFT owners from reproducing or commercializing the digital work without the creator’s permission. As a result, NFT owners must be aware of the specific rights they have acquired and avoid infringing on the creator’s intellectual property.

Smart Contracts and Licensing Agreements

To establish the rights and limitations associated with an NFT, creators often use smart contracts or licensing agreements. Smart contracts are self-executing agreements coded on the blockchain that outline the terms and conditions of the NFT transaction. These contracts can define the buyer’s rights, the creator’s royalties, and any other relevant terms.

Licensing agreements, on the other hand, are legally binding documents that clarify the rights granted to the NFT buyer. These agreements may be incorporated into the NFT’s metadata or provided separately, and they often include limitations on usage, reproduction, and modification of the digital work.

Secondary Sales and Royalties

Another aspect of NFT rights revolves around secondary sales and royalties. Creators can program smart contracts to include royalties, ensuring that they receive a percentage of the sales whenever their NFT is resold on secondary markets. This feature has been widely praised for providing artists with an ongoing income stream and incentivizing the creation of new digital works.

However, royalty enforcement can be challenging, especially when NFTs are traded across multiple platforms. To address this issue, some platforms are working on cross-chain solutions and collaborations to ensure that creators receive their royalties, regardless of where the NFT is sold.

The Future of NFT Rights

As NFTs continue to gain traction, there will undoubtedly be more discussions and legal developments surrounding the rights associated with these digital assets. Lawmakers, creators, and NFT enthusiasts must work together to establish clear guidelines and protections for both buyers and sellers.

In conclusion, understanding the rights that come with owning an NFT is essential for navigating the complex world of digital assets. While NFTs have opened up new opportunities for creators and collectors alike, it’s crucial to recognize the limitations and legal implications that come with these unique tokens. As the market evolves, staying informed and adapting to new developments will be key to ensuring a vibrant and sustainable NFT ecosystem.

The post Navigating the Complex World of NFT Rights: Ownership, Copyright, and Beyond appeared first on Fungible Apparel Blog.

One of the most controversial trends of the moment, NFTs have grown by leaps and bounds over the past few years, generating billions of dollars.

But then, what is an NFT and what is it for? Well, that’s what we’ve tried to explain to you in this article.

What’s an NFT?

An NFT or “non-fungible token” is a digital token that is immutably stored on the blockchain and therefore cannot be falsified or replaced. An NFT can represent an image, a video, a music, or a 3D model.

One of the main functions of an NFT is its ability to prove the ownership of any digital work, to make it authentic and unique. In other words, a non-fungible token (NFT) acts as a certificate of authenticity for a digital file.

Be careful not to confuse a non-fungible token (NFT) with a crypto currency. Although both are stored on the blockchain, an NFT differs from a crypto currency in that it is non-fungible, which makes it interchangeable, whereas a cryptographic unit (BTC, ETH) can be replaced by any other token under the same symbol.

Indeed, 1 BTC can be replaced by any BTC available on the market. Its value will not change. On the other hand, an NFT from the “Bored Ape Yacht Club” collection, for example, cannot be replaced by any NFT, whether it comes from the same collection or not.

This is why NFTs are associated with a unique identifier directly linked to the blockchain (e.g. BAYC #1552, CloneX #11587, etc).

What is the difference between a collection and an NFT?

A collection is simply a grouping of several tens, hundreds or even thousands of NFTs with similar (but unique!) characteristics (attributes). It is mainly through collections that the “NFT” trend has exploded in recent years.

If we take the example of the “Bored Ape Yacht Club” collection, one of the most popular NFT projects on the market, it has generated a total trading volume of about 800,000 ETH.

What are the use cases of the NFT?

There are a variety of use cases associated with NFT today. From video games to art to music, NFT technology has become part of some of the biggest industries in the world.

Here are some of the most popular NFT use cases:

• Collectibles: Collectibles are simply NFTs that investors buy to collect. Collectibles are often part of collections consisting of several thousand NFTs with different characteristics.
  
  Examples include NFTs from the “CloneX” collection on Ethereum or “Degods” on Solana.

• Video Games: The NFT trend in the gaming world has been getting a lot of press. Although extremely controversial among gamers, this new use case is seen, by some, as revolutionary for the video game industry in general.
  
  The goal is for gamers to actually own the items (skin, accessory, etc.) they purchase, but also to be able to reuse them in other video games.

• Art: Many artists, initially strangers to the world of NFT, have turned to this technology to authenticate the uniqueness of their digital works. In addition, NFT gives them the opportunity to create a sense of rarity by publishing very limited editions of their work.

• Fashion: NFT technology gives consumers the ability to verify the authenticity of their clothing by scanning a QR Code, or even better, by scanning an NFC chip linking them directly to their NFT. This is what we propose at Fungible Apparel, to learn more: (put link)
  
  Among the fashion brands using in one way or another the NFT, we find Nike, Adidas, Lacoste, Puma, Gucci, Ralph Lauren or Gap to name a few.

There are actually many others, such as music, sports, real estate or decentralized finance (DeFi) to name a few.

What are the most popular art styles in the NFT?

To conclude this introductory article on NFTs, let’s look back at the most popular artistic styles within this ecosystem:

• Pixel art : Cyberpunks, Moonbirds, Murakami.Flowers, Solana Monkey Business, etc.

• 2d (classic): Bored Ape Yacht Club, Otherdeed, Degods, Doodles, Cool Cats, etc.

• 3D: Clone X, RTKFT, Elrond Apes, Degenerate ape Academy, etc.

The post What is an NFT? appeared first on Fungible Apparel Blog.

Creating clothes with simple NFT images would not be of much interest. The simple fact of being able to certify the authenticity and uniqueness of our products changes the whole game. Thanks to our NFC microchips, our Fungible Apparel products are directly linked to your NFTs located in your crypto wallet.

In other words: wearing our clothes is the same as wearing your NFTs, without their security being compromised.

What is an NFC chip?

Think of NFC chips as 2.5 mm thick micro hard drives that can store minute amounts of data such as URLs or identifiers. This information can then be transferred to another NFC-enabled device (e.g. your phone).

At Fungible Apparel, our NFC chips store a URL that allows you to access the on-chain properties (purchase price, collection name, attributes, rank…) of your NFT via a simple scan.

Where NFTs certify the authenticity of a digital asset, Fungible Apparel chips act as a certificate of authenticity for your garment, to prove its uniqueness and that you are the owner.

Moreover, it is not the page that is directly stored in the chip, because its memory capacity is not high enough, but rather a character string (URL) allowing you to access it.

Technical characteristics of our NFC chips:

Thickness: 2.5 mm

Width: 25 mm

Water Resistance: Waterproof

Technology: RFID

How do our NFC chips work?

To make it work, our authentication chips are directly connected to an antenna allowing them to establish communication with your phone. Once the two NFC devices are in close proximity, a scan is enough to transfer the encoded information (NFT page) in your chip to your phone.

It should be noted that our chips have an increased level of security. Indeed, each of our Fungible Apparel is associated with a unique key that generates a random code at each scan.

Note that this famous key can neither be seen by a person nor read by an application.

The only entities able to read this key are your chip and our private servers. Indeed, it is on our remote servers that all the tags associated with their unique key are listed (e.g.: Fungible Apparel n°1551: Tag 1551 = key 12345***16).

Our servers are also responsible for checking whether the code generated randomly during the scan corresponds to the result expected by the algorithm. If it does, then your Fungible Apparel will be authenticated and you will access the page where the properties of your NFT will be displayed.

In the end, even if a third party managed to retrieve a code at a specific time, it could not be used for malicious purposes (counterfeiting, copying…), because it would simply be invalid.

It is also important to mention that the process of encoding and verifying the data on our chips is entirely managed by our internal team. Once locked, the information encoded within your NFC chip cannot be modified.

[Today, almost all phones support NFC technology.]

Are your NFTs safe?

Yes, our NFC chips do not compromise the security of your NFTs in any way. Indeed, your digital assets are neither modified nor moved from your blockchain wallet.

For additional security reasons, the page accessible by scanning your chip does not interact directly with your NFT, it simply retrieves its properties to display them. Apart from viewing the characteristics of your NFT, no interaction (exchange, sell on the blockchain…) is possible.

Rest assured, your NFTs still benefit from the security provided by Blockchain technology.

Do our NFT chips use Blockchain technology?

No, our chips are not directly connected to the blockchain or cryptocurrencies. Once again, only our secure servers are able to interact with the private data they communicate during each scan.

On the other hand, our Fungible Apparel platform is well and truly developed on the blockchain. A simple crypto wallet is required to connect to it and display your NFT collection.

Moreover, we also give you the possibility to buy your products with your cryptocurrencies. Among the available cryptocurrencies, you can find Bitcoin (BTC), Ethereum (ETH), or DogeCoin (DOGE) to name just a few.

Other cryptocurrencies will of course be added later.

How to activate the NFC chip?

After receiving your Fungible Apparel, you need to activate the NFC chip in order to make the connection with your NFT.

To do so, please follow these steps:

• Scan the label located on the left sleeve of your garment (the chip is located just below)
• Fill in the form with your email address linked to your order, as well as the ID of your Fungible Apparel product, then validate
• Scan your chip again to access the on-chain features of your NFT

Now you know the secrets of our NFC technology. Now all you have to do is strut the streets with your authentic Fungible Apparel.

The post How does Fungible Apparel’s NFC chip work? appeared first on Fungible Apparel Blog.