A guide to Non Fungible Tokens or NFTs
What are these particular tokens and how can they help authors and users of the web?
In a recent article about the elements that make up the blockchain and about its functioning, we introduced the concept of Unique Digital Assets.
The ability of the blockchain to guarantee the uniqueness of a digital asset opens the doors to its use for a more efficient management of exchanges and transactions also in those fields where the uniqueness of an asset (such as a work of art, a luxury good, a web domain, an event ticket, a property registrations or a physical assets) is fundamental. But there is more.
As pointed out several times previously, one of the main objectives of the LKS Foundation is to manage copyright protection in relation to digital content. And this goal can be reached precisely through blockchain technology, in particular, thanks to a specific category of tokens: the Non Fungible Token or NFT.
What are NFTs?
The NFT concept was invented by Dieter Shirley and proposed in September 2017.
To better understand what non-fungible tokens are, it is necessary to define the concept of "fungible". A fungible good is a good whose units are not unique, therefore, each of them can be replaced or exchanged for another equivalent unit. An example of a fungible good is money: a one euro coin is worth as much as any other one euro coin.
Accordingly, a non-fungible token (NFT) is an encrypted token on a blockchain which represents a unique and non-interchangeable asset. It can be an asset which is entirely digital or a tokenized version of a real world asset.
If, as we mentioned, the blockchain allows you to prevent the duplication of an asset in the digital world by making it unique. The ability to encrypt also non-fungible assets becomes interesting for those cases where it is precisely the uniqueness of an asset that determines its value. Think, as an example, of the items of a collector.
Since NFTs cannot be interchanged with each other, they constitute unequivocal proofs of authenticity and ownership in the digital world.
How do NFTs work?
NFTs are more commonly defined according to the ERC721 standard which allows the issuance and trading of non-fungible assets on the Ethereum blockchain, thus they are different from tokens that use the ERC20 standard.
NFTs cannot be transferred without the owner's permission and you can buy, sell and exchange them as normal tokens within open marketplaces, such as OpenSea. These kind of marketplaces connect buyers and sellers and here the prices vary according to market demand and supply similarly to any other good.
Why are NFTs useful?
Decentralized Applications (dApps) can use these particular tokens to issue unique digital objects. Applications with NFTs in the world of video games have already become famous, one example in this field is the case CryptoKittens, but NFTs can represent also physical assets that can be stored and exchanged as tokens on a blockchain.
This would give new impetus and new efficiency to markets such as that of art works, real estate, rarity collections and many others where the scarcity of the asset determines its value.
But there is more: the properties of NFTs can also improve copyright protection.
One of the use cases of Non Fungible Tokens is, in fact, their application on digital property rights. Thanks to the blockchain, metadata regarding the ownership of an asset can be stored and validated internally, ensuring a secure and transparent registration and the traceability of their origin. NFTs can therefore be created to represent assets such as, for example, an original work of art or an ebook, preventing unauthorized distribution and fraud, all to the benefit of both its creator and potential buyer.
The LKSCOIN Project: Protecting Content and Truth
The LKS Foundation intends to create an NFT that is able to connect and register the ownership of the content and the identity of the source, according to the fundamental principles of the Blockchain through a unique and irreversible transaction.
Thanks to the unique combination of a subject's identity and its content, it will always be possible to trace the authorship of that content back to its author. This not only allows web users to share their work and to be able to protect their idea and their work, it also allows to tackle a problem that has found fertile ground for expansion on the internet: fake news.
Validating the connection between a content and the author allows, in fact, to discourage unethical activities such as distortion of information and dissemination of misleading content. If what is published is false or questionable, the author can be traced and face the consequences. This encourages greater responsibility in sharing content circulating on the web.
Users with certain sources will create original and valid content and they will also be encouraged to validate it in order to increase its visibility: to tackle the problem of fake news, search engines and online platforms (including Cam.TV) will tend to promote and reward only validated content in the future.
The LKS Foundation is an Italian non-profit foundation that aims to raise public awareness of copyright issues and to offer users effective tools to protect their work and counter fake news.
The first step was the creation of LKSCOIN, a token that allows users get remuneration and supports the creation and promotion of digital content, with particular attention to copyright.
Now that LKSCOIN has been successfully tested within Cam.TV for over a year, the Foundation has launched a token sale before offering this cryptocurrency freely on the market, in order to support the creation of the NFT for copyright protection.
If you want to support the project, it is therefore sufficient to purchase LKSCOIN on the Eidoo Crowd crowdfunding portal at a fixed price of 0.01 Euros.
For questions and clarifications on the project, visit the Telegram chat where you can ask the Community for help or information at any time: