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title description
Data NFTs Ocean Protocol uses ERC721 NFTs to represent the intellectual property (IP) of published datasets or algorithms, and to further sub-license access to it with user roles or ERC20 data tokens.

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 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 transfer transactions.

Terminology

  • Base IP means the artifact being copyrighted. Represented by the {ERC721 address, tokenId} from the publish transactions.
  • Base IP holder means the holder of the Base IP. Represented as the the actor that did the initial "publish" action.
  • Sub-licensee is the holder of the sub-license. Represented as the entity that controls address ERC721._owners[tokenId=x].
  • To Publish: Claim copyright or exclusive base license
  • To Sub-license:Transfer one (of many) sub-licenses to new licensee: ERC20.transfer(to=licensee, value=1.0)

Supporting NFTs using Ocean Protocol

Ocean Protocol defines the ERC721Factory 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

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 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.

Roles

ERC721Template contract defines following roles:

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.
  • NFT Owner can assign managers while deploying the contract.
  • NFT Owner is also added to the Managers.
  • NFT Owner can add/remove Managers.
  • Clean all permissions

Manager

  • A public address with a Magner role can update the metadata
  • Can deploy new ERC20 contract which is associtated with the ERC721 contract.

Use case 1

Alice is the creator of a painting and wants to make sure that the ownership of her artwork is uniquely determined. She performs the Publish action. She creates an ERC721 token which represents the ownership of the physical asset. Here, Base IP is Alice's artwork. Base IP holder is Alice. Now, Alice wants to transfer the ownership of her Artwork to Bob. So, Alice makes Bob's address as owner of the token in the discussion by sending a Blockchain transaction.

Image 1

Use case 2

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 transfers the digital copy token to Bob's wallet.

Image 2

Other References