Digital Asset

We refer to NFT as a type of digital asset, which is a digital representation of ownership and authenticity for a specific digital or digitized item - the artwork.

Simplest possible NFT would consist of:

1. The artwork (e.g. a photograph)

2. The entry in the ledger (blockchain) who owns the artwork

However, there are several issues with this basic form of NFT. The primary concern is that it allows anyone to create and claim ownership of the same artwork, leading to problems of authenticity.

We propose considering NFTs as a multifaceted concept that, when done right, has the potential to address not just authenticity issues but also copyright and related challenges.

Content Pieces of a Digital Asset

Item	Description
Artwork	The artwork is a digital item that the NFT actually represents and tokenizes. It can be present as one or multiple files. For example, it can be a picture in different sizes, or it can be several versions of the same picture, etc. The copyright owner (author, publisher) will actually decide what is the actual artwork and in what form it will come to the art collector.
Preview	When we speak about photography, for example, a preview is typically a smaller, lower-resolution image that is useful for presenting the artwork in a wallet or on a webpage. A preview may also serve as the artwork itself; however, we separate this content piece because it is a common practice to have visuals of the "product" distinct from the actual "product." For instance, a preview picture may include a watermark or showcase different aspects of the artwork.
Certificate	An entry in a ledger serves well as a certificate of authenticity, because it's a unique and immutable record. However, one needs to trust that it's the author who is the one minting the NFT. To attach the authenticity to the real world as much as possible, we introduce a certificate of authenticity as a content piece which is signed with a qualified e-signature. We call it e-autograph.
License	This content piece is somewhat overlooked nowadays. The license represents the guidelines set by the copyright owner, such as the author, regarding what actions can be taken with the artwork. For instance, the author may NOT permit copying, modification, nor distribution of the artwork. Explicitly providing the license within an NFT is essential because many people mistakenly believe that the absence of a license implies they can do anything with the artwork, which is not the case.
Information	This is metadata such as title of the artwork, description, or any other significant information that the publisher of the NFT chooses to associate with the artwork or a collection.