Foreword: Whether it is Web 3.0 or Web 5.0, whoever can deeply integrate with the current Web2 Internet ecology can obtain a stronger digital user base and digital asset base. The driving force behind all this is the unstoppable tide of integration between the digital economy and the real economy , in this general trend, metaverse intellectual property is the shining jewel in the crown. Let us look forward to the emergence of the leader of this WEB3 digital intellectual property matrix revolution
A major positive news from the WEB3 field today: Hong Kong’s excited release of the "Policy Declaration on the Development of Virtual Assets in Hong Kong" on October 31 demonstrates the determination and commitment of the Hong Kong government and the industry to explore financial innovation. The attention of Web3 entrepreneurs means that Hong Kong is about to "set sail", and it is very likely to become a world-class center of gravity for new finance and Web3 innovation in the future.
What is Web3
In 2014, the co-founder of Ethereum, Gavin Wood (Gavin Wood) first proposed the concept of Web 3.0, describing it as a brand-new Internet operation mode: users publish and store information by themselves, which cannot be traced and will never be leaked, so that The Internet is more decentralized and safer, that is, "decentralized network"; thus breaking the platform monopoly and opening a new wave of global digital economy.
In one sentence: Web3 is a decentralized Internet running on blockchain technology. It is called the "third-generation Internet". Web3.0 is actually a reconstruction and evolution of the current Internet architecture of Web2.
Web3 Core Elements
Web3.0 has a technology basic core: "BlockChain" infrastructure, and has two core elements: "Digital Identity and Digital Assets", which carry the upper layer DAPP decentralized digital applications and digital economy.
The evolution of Web3.0 may completely change the relationship between virtual and real spaces. The most critical technologies supporting the development of the digital economy are emerging and developing, and the infrastructure supporting the integrity and operation of the digital world is taking shape. As various real identities and rights in human society enter Web3.0 with the help of digital identities, and with the continuous improvement of economic elements such as digital assets and digital currencies, trusted computing based on blockchain technology and automatic execution of smart contracts, the digital economy The real closed loop of automation begins to complete. In the past, it was production in the real economy and consumption in the network economy; in the future, it may be production in the Metaverse economy and consumption in the real economy. The real economy and the digital economy will further form a deep integration.
Decentralized Web Platform
In 2021, Twitter founder Jack Dorsey announced his resignation as CEO of Twitter. On June 11, 2022, Jack Dorsey announced at the Consensus Conference that he will build a Decentralized Web Platform to create the next generation of network infrastructure and directly replace The current concept of Web 2 and Web 3 is therefore also called Web 2 + Web 3 = Web 5.
In short, combining the user-friendliness and usability of the traditional Web2 Internet, plus the innovation of user digital identity and data autonomy brought about by Web3, a new generation of Internet platform Web5 is formed.
In Jack Dorsey's development vision, Web5 is a network communication facility and the bottom layer model of the new generation of the Internet. It is itself a network. The current Internet is the benchmark for Web5. Rather than a Layer1 public chain like Ethereum or Bitcoin, this is also the most misunderstood place.
Internally, it can be divided into the DID/Wallet part as the entry function, as the verification suite as the VC (Verifiable Credentials) part, information flows safely between DWNs (decentralized nodes), and these are unified into DWP (Decentralized Web Platform).
In popular translation, Web5 is to build a decentralized web platform (DWP), allowing developers to use decentralized digital identities (DID) and decentralized network nodes (DWN) to create decentralized web applications (DWA), finally realizing the return of identity and data control and ownership to users.
For several key new concepts proposed by Web5 this time, decentralization and privacy are the goals. Decentralized digital identity (DID) is equivalent to public key, and decentralized network node (DWN) is equivalent to a network that does not run on the blockchain. Smart contracts, verifiable certificates (VCs) are equivalent to zero-knowledge proofs, and decentralized applications (DWAs) are equivalent to DApps.
The core difference between Web3 and Web5 is that in Web5, only the identity is stored on the blockchain, and all other content is stored on the nodes run by users.
In addition, Jack Dorsey also made it clear that there will not be any tokens available for investment on Web5. The status quo of token economy will be ended in Web5.
For most fans who pay attention to Web3 and Metaverse, their smiles may freeze instantly after seeing the news of Web5. Many people spent a lot of time learning the concept of Web3 (even changed their Linkedin, Twitter and other accounts), and invested real money (investing in digital currency), declaring that they are All in Web3, Could it be that once the Web5 army arrives, we have to start from scratch again.
Despite the endless new concepts, after the above analysis, Web5 and Web3 are still of the same origin, and both emphasize the decentralized nature of the next-generation network. The goal is also to create a world where users control their own data based on blockchain technology. The difference is that Web5's path to achieve its goals is based on the Bitcoin network, while Web3 is based on the widely used Ethereum and other smart contract-based blockchains.
Intellectual Property: The Value Leap Brought By NFT
Through the comparative analysis of the above text, we believe that Web5 and Web3 are more like two different development branches, and the biggest innovation of Web5 that differs from Web3 needs to return to its essential concept: "Web5 = Web2 + Web3", that is, Web5 emphasizes the traditional Internet and The transition and integration of the decentralized network; Only the further in-depth integration of the real economy and the digital economy can give birth to a truly new generation of Internet.
Take "intellectual property" (commonly known as IP), the most valuable intangible asset in the real world, as an example: intellectual property rights are automatic rights that give creators ownership of their intellectual property. It is granted by copyright law and is widely used in many situations in today's society. However, with the development of the Internet from Web2 to Web3, ownership has a new form of expression, and the traditional concepts and related norms of intellectual property rights are no longer applicable to the digital economy represented by Web3 and Metaverse.
The current intellectual property framework created around Web3 still comes from the Web2 world, but new carriers of IP (intellectual property) have emerged in the metaverse and digital economy era: NFT serves as a bridge connecting the metaverse digital economy and the real world, It provides underlying support for the generation, confirmation, pricing, circulation, and traceability of digital assets in Web3.0 and the future Metaverse,The mature development of NFT will further accelerate the landing of the digital economy.
Intellectual Property in Web3 Era?
The decentralized nature of Web 3.0 appears to be at odds with sweeping regulatory efforts. But for the Metaverse, when the Metaverse develops into a confluence of technology, content, and human rights, "its scientific, creative, and social attributes naturally lead to regulations, as Web2 and social history show".
Transparency, accountability, and collective ownership are three areas where Metaverse governance should focus its efforts. The first two aspects are more about technical issues, while collective ownership is more about intellectual property, ownership and individual behavior, and the purpose is to provide a rights exemption tool that allows anyone to profit from NFT and Create derivative works without fear of legal repercussions. Since collectivism is key to the realization of the Metaverse and its business value (as it facilitates co-creation), it will in turn create a need for Metaverse intellectual property regulations and lead to more innovation and attention in the future.
Currently, there are two options when it comes to IP regulation. One is the Creative Commons Zero (or CC0 license), which lets artists put their work into the public domain so anyone can recreate it and make money from it. The other is the "restricted collective intellectual property license" solution triggered by the ability to confirm the rights of data assets brought by NFT, which grants commercial or limited commercial rights to a specific holder group of NFT collections.
CC0 License Agreement
CC0 NFTs earn ongoing royalties primarily through secondary sales. As a result, monetization of their work is indeed no longer an easy, straightforward process for creators who relinquish ownership of their projects. Instead, it is centralized third-party organizations (such as OpenSea) that simplify the royalty process and ideally may help popularize the project, increasing derivatives, thereby increasing the value of the original CC0 asset by promoting demand.
As tshirtbob recently explained, "By handing over my intellectual property to CC0 rather than 'protecting' it, it avoids a bad repeat. For example, if UrbanOutfitters wants to put I put my design on a t-shirt, and instead of hiring someone on their team to design something that looks like it, they can just use my work.” In this sense, adopting a CC0 license also effectively Competition becomes cooperation.
From an industry point of view, the CC0 license agreement cancels the restrictions on copying, dissemination and secondary creation, that is, the self-propagation effect, which will allow project owners to enjoy the rapid accumulation of a large amount of attention without spending too much effort to Promote their work.
It also “liberates an IP from its inherent value and optimizes its functional and social value through community co-creation,” Maxium added, “[This further] enables community members to generate infinitely scalable content. … ..so more capital and talent may join in the co-creation, eventually forming a virtuous circle [in the industry].”
Restricted Intellectual Property License Agreement
As promising as CC0 is, it's not right for every project. Creators can't expect to magically turn a project into a cult hit simply by adopting a CC0 license, nor can they rely on open copyright to make anything wildly popular overnight. Similar to open source software, CC0 works best for NFT projects that have the potential to build a rich, expanding ecosystem. When a project cannot meet this prerequisite, a restrictive intellectual property license agreement provides a more appropriate solution.
Projects like BAYC, Meebits, and Azuki have all taken this more eclectic approach, granting restrictive license agreements. For example, BAYC allows holders to use their NFT to create and sell derivative products, but requires them not to use BAYC's brand logo or name;
Meebits require holders to receive no more than $100,000 in business benefits per year, etc. The advantage of this model is that the project owner grants some power to the holders for free. However, the copyright of NFT works still belongs to the project owner, but therefore, the scarcity of the project is guaranteed.
Different goals require different strategies. For low-threshold NFTs, co-creation should be open to everyone, so that the IP, culture or spirit of NFTs can be spread more easily, and projects can develop in unexpected ways. And creators should strive to ensure the basic rights and interests of collectors by building a community with a high degree of consensus to support royalties, brand popularization and diffusion.
As for NFTs with high thresholds, such as BAYC and CryptoPunks, in order to ensure the scarcity of NFTs, restrictions are still necessary. Various restrictive licenses can be granted based on the level of consumer contribution, such as the amount spent, activities in the community, sales of previous co-creations, etc. “Different strategies for collective ownership should be adopted according to the IP positioning of NFTs,” Maxium suggested, “CC0 is most suitable for mass NFTs, while restrictive licensing is more suitable for high-end NFTs.”
METAIP: Metaverse IP License Agreement
In addition to CC0 with fully open copyright, limited and open restrictive intellectual property licensing agreements (such as NFT brand names and brand use rights are not open to Holder), is there a third copyright model option that can give global holders sufficient rights and interests? Sharing can also allow copyright developers to have continuous motivation to innovate the Metaverse IP model,
In order to find a new generation of smart contract-based digital copyright IP model that is more open than BAYC and better able to represent the interests of holders than CC0, we searched all Metaverse IP projects on the market, It is found that the Metaverse native MetaIP decentralized copyright agreement released by "DragonCapsule" is a good innovation. It binds the holder's MetaIP's digital rights through the WEB3.0 global standard ERC721,And share and open the NFT brand name and logo usage rights to Holder,With NFT as the carrier, the digital rights of Metaverse IP and liquid of digital IP are realized
DragonCapsule Applies METAIP license
If BAYCs are in "PGC mode", the CC0 NFT project to which Mfers belongs is "UGC mode", and the MetaIP project to which DragonCapsule belongs is "PGC+UGC mode". It not only allows the global Holder to participate in the creation and promotion of IP, but also protects the driving force of developers to continue to innovate and promote the project. It integrates the common interests of both Holder and developers, and perfectly realizes the co-creation and sharing based on DAO power
MetaIP (Metaverse Decentralized IP Protocol) not only opens the NFT copyright to Holder holders, but also shares and opens the rights to use the NFT brand name and logo to Holder. MetaIP realizes the confirmation of its digital assets through the associated NFT works. It is a digital certificate for sharing its MetaIP rights and interests, and it is also a digital certificate for DAO governance associated with NFT brands.
DragonCapsule is the world's first NFT brand collection that applies the METAIP protocol. It is the first time to open up the rights to use the brand name and logo, and realize the sharing of rights and interests with the global Holder.
The binding of digital proof of rights and social identities endowed by MetaIP has brought about a comprehensive innovation of Web3.0 SocialFi, social value can be embodied, and IP rights can be exercised in the real world and circulated in the NFT market.
MetaIP utilizes blockchain technology and NFT standards to achieve unforgeable tampering and unique features. It is not only suitable for the confirmation of digital assets, but also makes it a perfect carrier for Metaverse's original Metat IP digital rights. With the growth of Meta IP With unlimited room for appreciation.
MetaIP can also build a global IP collaboration and fair and transparent digital economy sharing model through the governance form of DAO, and promote the healthy and orderly development of cross-regional cultural industries. Decentralized protocols and emerging DAO-based entities have the potential to reshape everything about culture and IP, from how IP is built to how people communicate and create communities.
Metaverse Needs Its Own Native IP Model
Through the above analysis, we believe that NFT carries more than just N small pictures generated by simply piecing together elements through AI tools. It is a great fallacy to position NFT as a digital artwork/digital collection. NFT is a kind of An intelligent data container with infinite possibilities, Metaverse's original intellectual property is most likely to become one of the killer applications of Web3.0.
The NFT project party grants holders and community members a series of rights and interests through various innovative IP authorization forms (including the adaptation of NFT avatars, secondary creations, and derivative development, DAO identity digital certificates, etc.), which drives the secondary creations of holders and community members , enhance the playability, narrative, and applicability of NFT projects, create a strong community consensus and generate actual value, this is what the Web3 world wants to see.
Web3 Native Intellectual Property Protocol
Realization of Web3 Native IP Infrastructure
MetaIP is one of the implementations of Web3's native intellectual property protocols. YieldDAO has built a prototype of MetaIP's Web3 infrastructure implementation, that is, through the NFT AMM mechanism, it realizes the decentralized sharing path mechanism of the IP rights of the NFT collection holders community and DAO members.
This path is compliant and practical, both under the existing legal provisions and under the existing regulatory regulations of the SEC. In essence, this path is a kind of intellectual property agreement code treaty realized on the basis of NFT digital asset right confirmation technology and smart contracts.
WEB3 Digital Intellectual Property Matrix Revolution
The emergence of MetaIP, the Native IP copyright of Metaverse, is part of the digital development of human society and the wave of Web3.0 revolution. We cannot predict the scope of the revolution, nor how it will reshape the culture. At this early stage, it is not yet known what factors will act as catalysts for the code. These catalysts may be technology, regulation or culture. It is also not clear whether this shift will come from innovations in the way benefits are distributed, or from the application of decentralized paradigms supported by blockchains - but it will certainly have far-reaching impact and significance.
We firmly believe that the emergence of various innovative IPs such as MetaIP, CC0, and BAYCs is not only a comprehensive matrix revolution, but also a reasonable answer to digital intellectual property issues in the Web3 environment.
Blockchain technology and NFT will greatly improve the circulation of IP and the efficiency of cooperation, and change the creation and derivation of traditional IP itself. Only by truly applying the technical characteristics of NFT to the real business economy and real environment can NFT be regulated The market and the right way to promote the healthy and sustainable development of the new digital economy.
YieldDAO is a leading Metaverse IP service platform & Metaverse Professional Guild. Its mission is to create a Metaverse professional DAO with the theme of X2E. Through in-depth exploration of the open world, YieldDAO integrates and establishes an original high-value MetaIP and high-quality content ecosystem; To provide a professional community for learning, living, working, gaming, income, and project acceleration in the metaverse for new humans entering the metaverse and Web3.0 fields, YielDAO is growing into an open world that will continue to explore and promote the empowerment of Web3.0 The potential value of the new digital economy.