The first point with the ownership of an NFT is that you do not own the intellectual property or copyright of the project. The nonfungible token is a digital asset in a blockchain network. It can be used to track and authenticate the origin of digital media. The media can be a music file or anything that is present in digital format. The token has monetary value, but it is not the media itself.
You Do Not Own the Underlying Media
Whether you spend $5 or $1 million buying an NFT, you never become the legal owner of the media being represented with the token. You only get the keys to the unique token. You can trade, display or hold this token on platforms like Decentraland. The digital file of an NFT can be downloaded and copied like any other digital file.
Nuanced Relationship between Digital Works and NFTs
Crypto does not go against copyright laws. When making changes to IP protection laws, regulators will take into account these new technologies. The laws will incorporate changes to benefit all stakeholders. These nuances are not obvious on OpenSea like platforms. NFTs have been promoted to bring “permanence” or “scarcity” to digital objects that have infinitely reproducible features. However, this scarcity remains limited to the token itself.
NFTs are designed to check provenance. DAOs are used to organize people, share funds and execute plans. Both DAOs and NFTs have shown lots of promises. They have changed the way people think about digital and web ownership. The idea behind these projects is to allow people to own and profit from projects of their labor. It improves collaboration and democratizes the investment field.