NFTs or non-fungible tokens are unique one-of-one digital assets that are secured by the blockchain.
NFTexplained.info is a team of long term crypto investors who are well versed within the NFT space with the goal of providing the best educational information possible.
In this article, the team at NFTexplained.info will explain why saving the file or artwork for an NFT is not the same as actually owning the NFT.
While you could ‘right click, save’ an NFT, this argument is frail. Saving a file doesn’t allow you to prove ownership via the blockchain and doesn’t allow you to sell the digital asset. Also, perks from owning the NFT aren’t received (e.g. commercial rights, private group chats, physical items, ect).
This objection to the value of an NFT fundamentally misses many of the principles that NFTs bring to the table. This is a misconception by many and NFTexplained.info would recommend reading more about NFTs.
Owning an NFT allows you to have verifiable ownership (think of a digital receipt) for an item as well as view the previous owners who had the item.
Previous ownership is known as provenance; NFTexplained.info has an article covering that, which can be found here.
Establishing proof of ownership is a powerful thing and NFTs have made that possible in an increasingly digital world.
Additionally, perks or utility such as physical items can be received from owning an NFT. Jack Eichel, an NHL star for the Vegas Golden Knights sold NFTs with perks; NFT owners could receive signed memorabilia from him.
This topic was recently discussed by famous entrepreneur, Gary Vaynerchuk. He made a great analogy in regards to the value of appearance.
“…Go outside, stand in front of one of those little mansions (he was on Cape Cod), take a selfie with the house in the background, and say ‘my house’. You’re more than capable of right clicking a JPEG; it doesn’t mean that it’s yours, that’s what the blockchain is. I actually own my CryptoPunks, I can press a button and sell and make money. You don’t when you do that {right click}.”
Just because you own a poster of the Mona Lisa does not mean you own the actual Mona Lisa.
CryptoPunks is one of the first NFT projects released by Larva Labs; punks have a floor price of more than US $200,000. Although the art work has been widely copied, the real value resides in the ability to sell this asset for $200,000.
Next NFTexplained.info will cover the legality of screenshotting NFTs.
Is It Illegal To Screenshot Or Save An NFT?
While saving an NFT doesn’t allow for proof of ownership and perks, many may be wondering if it is legal to save an NFT.
The reproduction of NFTs for commercial use is illegal. However, saving or screenshotting an NFT to admire (i.e. for personal use) is legal. Saving does not make you the owner and the blockchain will prove that. Perks from ownership will also be missed out on if you are just saving the NFT.
Aside from the ability to sell the asset, ownership provides other benefits. It is legal to create tee shirts or clothing from the NFT line Bored Ape Yacht Club as members (collectors) own the intellectual property rights to the NFT they purchased.
This means that all rights in regards to the asset are owned by the holder of the Bored Ape. These rights are protected against use without consent.
Saving the file for the NFT doesn’t make the value of the NFT decrease. For example, taking a picture of an expensive piece of art doesn’t make the actual art any less valuable.
This principle is still true with NFTs but even more so in the sense that perks like member rewards will not be received.
Next, NFTexplained.info will cover the legality of selling prints of NFTs you own.
Can I Sell Prints Of My NFT As A Collector?
When it comes to the commercial reproduction of NFTs, there is quite a bit of confusion.
Ownership of some NFTs allow for the selling of prints and additional commercial use – however not all NFTs do. Similarly to physical art, purchasing agreements often state that commercial rights for reproduction are illegal and still belong to the creator of the NFT.
Certain NFT projects like Bored Ape Yacht Club allow for commercial use if you are the collector of the NFT. This is an interesting aspect of NFTs and projects have already made it possible for the collector to receive commissions if their NFT is used (e.g. in the storyline, show, ect).
Some NFT projects may create a comic or a story in which the NFT characters or avatars are used. If the NFT you own is being used, you could receive a percentage of commission each time the story behind the project is viewed. This is a form of utility an NFT can offer the owner.
Not all projects allow for commercial use and many artists or creators of NFTs still retain commercial rights. This is also common with artists that create physical works.
This often comes down to purchasing agreements however more and more NFT creators are allowing collectors or owners to have commercial rights. This is an aspect that can make an NFT line or project more appealing.
NFTexplained.info will now explain if NFTs are just a JPEG?
Are NFTs Just A JPEG? Is There More To An NFT?
The contents of an NFT take the form of digital files like JPG, MP3, or GIF. Owning an NFT allows for proof of ownership via smart contracts that are stored on the blockchain. Ownership also grants perks like commission from your NFT being used in a story/movie, access to games, and real world events.
People may think that there is little to no point in purchasing NFTs due to the fact that the content or file (e.g. JPG) can already be seen however NFTs grant access to more than just ownership of a JPG.
If you are interested in learning more about smart contracts and how they work, NFTexplained.info has created an article which is linked to here.
Let’s dive deeper with a real example. An additional perk that owners of the NFT line Top Dog Beach Club receive is the location to two real world beach parties as well as the .psd file for the dog (source file for Adobe Photoshop).
This enables a creative owner to make slight changes. The source artwork allows users to find hidden traits by removing attributes (e.g. removing a mask to show traits like a gold nose).
Lastly, NFTexplained.info will cover where you save an NFT?
Where Is An NFT Saved? Where Does My NFT Go Post Purchase?
An NFT is stored on the blockchain; the web files for the contents of the NFT are stored on the web. Post purchase, NFTs are most commonly kept in digital wallets like MetaMask and can also be viewed in the NFT marketplace where the NFT was purchased.
NFTexplained.info has created an article that covers the topic of where an NFT is stored. That article also explains all the locations an NFT can be stored post purchase and more. It is linked here.
Most commonly and for the vast majority of people who start getting into NFTs, digital wallets like MetaMask are necessary for the purchasing of an NFT.
MetaMask is the most commonly used digital wallet and NFTexplained.info has created an article breaking down how to create a MetaMask account as well as what MetaMask is. That article is linked here.
We hope you are just as excited as we are about NFTs and continue to stay informed at NFTexplained.info. To get the latest news in this rapidly evolving space, follow our team on Instagram & Twitter!