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Issue-#701: Improve v4-NFT doc

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Akshay 2021-09-28 12:13:55 +02:00
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### NFTS
---
title: v4 NFT introduction
description: The page describes NFT, IP and sub-licensing using Ocean Protocol's contracts, and use case.
---
## NFTS
A non-fungible token stored on the blockchain represents a unique asset. NFTs can represent images, videos, digital art, or any piece of information. NFTs can be traded and allow transfer of ownership and copyright. [EIP-721](https://eips.ethereum.org/EIPS/eip-721) defines an interface for handling NFTs on Ethereum blockchain. The creator of the NFT can deploy a new contract on Ethereum or any Blockchain supporting NFT related interface and also, transfer the ownership through the transaction(s).
### Terminology
## Terminology
- **Base IP** means the artifact being copyrighted. Represented by the {ERC721 address, tokenId} from the publish transactions.
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- **To Sub-license**:Transfer one (of many) sub-licenses to new licensee: ERC20.transfer(to=licensee, value=1.0)
### Supporting NFT using Ocean Protocol
## Supporting NFT using Ocean Protocol
Ocean Protocol defines [ERC721Factory](https://github.com/oceanprotocol/contracts/blob/v4main/contracts/ERC721Factory.sol) contract, allowing **Base IP holders** to create their ERC721 contract instances on any supported networks. The deployed contract stores Metadata, ownership, sub-license information, permissions. The creator of the contract can also create and mint ERC20 token instances for sub-licensing the **Base IP**.
### Sub licensing the Base IP
## Sub licensing the Base IP
ERC721 tokens are non-fungible, thus cannot be used for automatic price discovery like ERC20 tokens. ERC721 and ERC20 combined together can be used for sub-licensing. Ocean Protocol's [ERC721Template](https://github.com/oceanprotocol/contracts/blob/v4main/contracts/templates/ERC721Template.sol) solves this problem by using ERC721 for tokenizing the **Base IP** and tokenizing sub-licenses by using ERC20. Thus, sub-licenses can be traded on any AMM as the underlying contract is ERC20 compliant.
### Use case
## Use case
Alice is the author of a book. Alice wants to hold the copyright of her work but, allows others to read her book. So, She creates 2 versions of her book namely: digital copy, physical copy. She assigns Bob as one of the holder of digital edition of the book. Here, **Base IP** is the book. **Base IP holder** is Alice and Bob is **Sub-licensee** for a digital edition of the book. Alice tokenizes her work by performing **Publish** action i.e _ERC721.safeMint(to=aliceWalletAddress, tokenid=1)_. Alice also creates sub-licenses of her book by creating two ERC20 tokens and transefers the digital copy token to Bob's wallet.
![Image 1](images/v4-nft-1.PNG)
### Other References
## Other References
- https://en.wikipedia.org/wiki/Non-fungible_token
- https://blog.oceanprotocol.com/nfts-ip-1-practical-connections-of-erc721-with-intellectual-property-dc216aaf005d

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### Roles
---
title: v4 roles and permissions
description: The page describes the roles and permissions present in ERC721Template contract.
---
## Roles
[ERC721Template](https://github.com/oceanprotocol/contracts/blob/v4Hardhat/contracts/templates/ERC721Template.sol) contract defines following roles:
- NFT Owner
- Manager
#### NFT Owner
## NFT Owner
- NFT Owner is the publisher. I.e. Owner is a public address which transacted with `ERC721Factory` contract and deployed a new `ERC721` contract.
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- NFT Owner can add/remove Managers.
- Clean all permissions
#### Manager
## Manager
- A public address with a `Magner` role can update the metadata
- Can deploy new ERC20 contract which is associtated with the `ERC721` contract.

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- title: DDO Metadata
link: /concepts/ddo-metadata/
- group: NFTs
- group: NFTs (upcoming v4 release)
items:
- title: Introduction
link: /concepts/v4-nft/