Security and NON-Fungible Token (NFT): standards, copyright, information safe
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1 Standards for Non-Fungible Token
Because of their requirements, non-fungible tokens are extremely strong. In addition to providing developers with the assurance that assets will behave in a given manner, they also explain precisely how to interact with the assets' basic functionality.
This means that developers can create complex logic that can be applied to assets and offer them to users who may not understand how to interact with them. Standards also allow for interoperability between multiple NFT games, which opens up the possibility of trading assets (cross-game).
There are four main standards that make NFTs work, and currently, only one organization is involved in designing standards for NFTs: the ERC-721 (Non-Fungible Token Standard). AGAME, a blockchain-based game platform, created this standard in 2018. The goal of this standard is to create common rules and functionality that can be applied across every game that uses NFTs.
This allows for interoperability between all games and incentivizes developers to use this as the main NFT standard. Although some other organizations have started working on standards as well, none of them has been formally released yet. This means that ERC-721 is one of the only standards that supports NFTs and makes them work seamlessly.
Some developers make design choices based on cultural norms and values. NFTs can also be a part of these norms and values if they are allowed to look like real-world assets. For instance, certain societies in Japan have a unique way they think about non-fungible items (the same is true for many others around the world). In Japan, items as simple as chopsticks and paper are considered to be unique and valuable because of the effort that was put into creating them.
If game creators opt to utilize NFTs to include this cultural element into their games, they will be able to generate game assets that are more valuable than what players can create on their own. This is one of the ways that NFTs may outperform conventional digital products.
The real potential of NFTs lies in blockchain technology. The blockchains they run on and the tools provided by developers can either work together or be completely incompatible. There has been a significant effort in the last year to make NFTs and other blockchain technologies work together so that game creators can get more advantages and gamers can earn more value. This includes the need for numerous characters to have particular functions, such as avatars that may be transferred to other game players.
NFTs are extremely easy to create. The only requirement is to define a series of properties for it, such as name and image. These properties can then be used in the NFT’s smart contract, which can handle all other details and make them work seamlessly with all other NFTs. NFTs are made on smart contracts that implement ERC-721.
NFTs are officially recognized by the Ethereum network and are therefore considered to be an Asset on the blockchain. This means that they have a unique address and ID so that they can be managed just like any other asset. The only difference is that the NFT in question will always be a unique item. This gives them a certain level of value and status – just like fiat money. For example, if a user has created an NFT for their character in a game, they can be used by that player as a form of game currency.
This gives them an incentive to treat the NFT like cash and exchange it for real-world objects or services within the game (fiat). The most popular way to access non-fungible tokens is through the Ethereum blockchain. Even though there are several other projects that support NFTs, the ERC-721 standard makes NFTs work seamlessly on Ethereum. The main benefit of this is that all the tools and specifications for creating an NFT exist on the blockchain. This means that developers are highly motivated to create their own smart contracts with ERC-721 to make it easy for players to use them.
There are three main parts of the smart contract for an NFT contract: primary functionality, describing its properties, and the token interface.
The first part is the primary functionality of an NFT. This refers to what a token can do when it is created and exists within a certain game. For example, this could describe how a particular item can be used to progress in the game or what special abilities it might have.
As it has been discussed earlier, the smart contract has three main parts, and describing its properties is the second main part of the smart contract.
In the non-fungible token smart contract, there is a list of attributes that define the NFT properties. These include its name and ID. The next attribute is called “metadata”. This is information that describes the NFT but isn’t part of its properties. Attributes that can be used with this kind of metadata include “owner”, “location”, and “avatar”.
The owner field refers to who is storing and keeping track of the NFT in question. This could be the game developer or a user. This is useful because it makes the owner of an NFT responsible for any actions that might be taken in relation to it, such as transferring it to another player or destroying it, for example. The next field is the location, and since there may be some game mechanics that depend on having this information available, location could have many different meanings and interpretations depending on what kind of game is being developed. For example, “location” could simply indicate the position of an item in a scene. It might also refer to the position of an item relative to other items in a game.
An item might have a special “location” that determines when it is safe to interact with it. It could also be used to indicate the current condition of an item.
The metadata field is used to describe any special details about an NFT that are not stored in the properties or defined through other attributes, such as its name and image. These details can include aspects such as creation time, creator, and image ID.
The final part of the NFT smart contract is called the token interface. This refers to how different smart contracts can interact with an NFT. It is useful for game developers because it makes it possible for them to create new NFTs without having to make any changes to their initial code. Using the token interface, they can create a new “monster” (for example) and give it a certain combat power. They can then include these details in the NFT’s metadata. This means that new items can be created without having to create specific points or levels. This creates more possibilities in terms of game mechanics and design, which makes smart contracts more powerful and useful.
2 Be smart about copyright
Any artist should know how and when to utilize copyright because it is a bedrock of intellectual property, especially when it comes to NFTs.
In the USA it is not necessary to register with the copyright office to exist, however, to apply against others it is necessary. The Copyright Act of 1976 provides for the exclusive replication, distribution and production of works by authors of pictures, sculptures or graphics. Platforms have to establish methods to deal with violating materials. However, it is easy to record a visual arts work within a couple of minutes, ideally before it is published.
While it is tempting to convert pre-existing images into an NFT, doing so without significant alteration and a clear additional message is like walking on a tightrope. Converting a digital artwork without the author's express permission may result in litigation, with the offender arguing that the use is "fair" under copyright law. Courts will evaluate the resemblance between the original and defendant's works, the market in which the parties operate, and the purpose and transformative character of the defendant's work when making fair-use judgments. A licencing agreement can avert complications and provides a fantastic opportunity to communicate with other creators.
Furthermore, artists should be informed that unless a written agreement between the customer and the artist is signed, the NFT purchaser does not have the right to replicate the underlying work purchased from them. However, any NFT platform may grant itself a non-exclusive, global, and royalty-free licence to distribute and reproduce copies of the art offered for sale by using the Terms & Conditions of the platform. The unfortunate reality is that these terms are rarely if ever negotiable.
3 Keeping your information safe
For artists, linking an NFT to a platform that accepts Ether is essential. Digital currencies can be stored in software wallets (like MetaMask or Coinbase) or hardware wallets (like hard drive). Because of increased protection against hacking (internet fraud), hardware wallets are a better long-term investment that has been shown to be more reliable.
When selecting a cryptocurrency wallet, it is recommended to look for two-factor verification, a secure way to store your seed phrase (same as password), and the ability to send and receive payments (same as debit card number). It is also advisable to get into the habit of using a virtual private network (VPN) while trading cryptocurrencies. It is also recommended that artists examine which wallets are accepted by the NFT platform before creating their own (for example, Foundation uses MetaMask).