This week the first television NFT was minted by FOX Corp. to commemorate the Upfronts and new creative endeavors on blockchain technology. We at eluv.io were lucky to provide the technology platform for this, and are excited to be part of the emerging possibilities for creative work on the blockchain — something near and dear to the Eluvio Content Fabric from the start.
The FOX NFT (non-fungible token) is an example of a digital collectible, minted as a contract on the blockchain. Non fungible tokens take advantage of the unique properties of blockchain technology to allow creators to make their digital work of virtually any form available as collectible experiences, in the form of digital tokens that are actually software contracts on a blockchain ledger. As compared to fungible digital tokens, like crypto currencies (bitcoin, eth, etc.), non-fungible tokens can refer to literally anything — an image, a video, a physical object, an event ticket, clothing, you name it — that has value to its creator, and may have value to others.
The “non fungibility” simply means that no two tokens are interchangeable for one another, such as a unique animation. Most NFTs are minted as standard Ethereum ERC-721 or ERC-1155 contracts, and enjoy the property that the NFT can be directly transferred from the creator owner to a new owner, and to follow on owners using only a blockchain transaction, in software. The cryptography and security of blockchain technology helps to ensure that both parties are legitimate (have valid, authenticated addresses on the blockchain), that the transfer of funds is sound, and that all transactions are transparent as part of the blockchain’s transaction history, which all participants can view.
NFTs can also collect residual payments for the original creator/owner via the mechanics of the smart contract’s transfer of ownership. Taken together, the NFT innovation allows for a scalable and transparent system for artists to sell collectibles from their creations without middle parties, with options to collect royalties, at Internet scale and with transparency. Hence the excitement about NFTs to transform the creative world is powerful and real. To learn more about Non Fungible Tokens, see this popular resource.
What is the Eluvio Content Fabric?
The Eluvio Content Fabric is an advanced, open protocol blockchain network purpose- built for digital content. The Fabric allows digital content to be stored, managed, and dynamically composed and served from the source asset, directly to the viewer without any middle systems or parties, and backs all aspects of the content’s ownership and access control with blockchain contracts. The Fabric is a very novel invention as content distribution and storage systems are concerned. Its protocol combines just-in-time video transformation and processing, decentralized storage and content routing, and radically efficient re-use of content parts to achieve a truly breakthrough efficiency compared to traditional content storage and distribution systems and compared to proof of work blockchains. It is an ultimately eco efficient and high quality content experience that makes possible creator to audience distribution models at scale for the first time.
Through a novel compositional and just-in-time protocol, the Fabric makes no file copies and dramatically reduces the storage and network requirements and latencies of traditional digital distribution systems, and avoids the computational costs of proof of work blockchains. Its blockchain characteristics ensure all content is authentic and under the control of its owner, and all audience watch data flows only between audience and content owners or their proxies. This has many benefits including minting NFTs efficiently and directly from any content — not just static images and small videos — and with storage and serving that enforces authenticity, uniqueness, and rarity.
What makes NFT’s minted on the Eluvio Content Fabric unique?
The original animation created for this NFT lives in the Eluvio Content Fabric, and this NFT was minted by the Content Fabric as a uniquely versioned content object having a unique address in the Eluvio blockchain. The Content Fabric solves several of the biggest problems facing NFTs today: (1) Authenticity. The NFT contract has a direct, inseparable link to the original content object that was used to create it. The Content Fabric hash is a cryptographic fingerprint that proves that the content referred to by the NFT is actually the same as the original content, and can be verified through an open proof protocol. The original content stored in the Fabric is also encrypted, and all authorization to it requires a valid blockchain transaction, making the original content tamper free and truly unique. Most NFTs today refer to storage of the digital content that is unprotected and sometimes, not verifiable. (2) Uniqueness and Rarity. Each NFT minted by the Content Fabric is guaranteed unique, as it refers to a unique version of the original content object, minted with a unique issue number among a finite set. Access to each unique NFT and its viewing experience is enforced through a crypto wallet or a digital ticket code that is cryptographically verified against a blockchain contract that backs the NFT batch and that particular issue number. Your unique issue number is dynamically watermarked into your NFT when you access it with your ticket code or crypto wallet, to display your proof of ownership to others. (3) Any Content. Unlike traditional NFT platforms that require a third party media storage or distribution system to serve the digital content (static images, small videos), the Fabric can render any digital content — a full length movie, concert, or even a continuous performance — as an NFT. This opens up virtually unlimited possibilities for collectible experiences. (4) Chain of Ownership and Secondary Payments. Because the Fabric couples the transfer of ownership in NFTs to the content contract it is possible to have any royalty or other payments to creators part of every NFT transaction, and to enforce this in the availability of the content itself.
How do I add this NFT to my crypto wallet?
Each NFT is stored on the Eluvio Content Fabric blockchain. For ease of use, an NFT can be secured by a digital access code (ticket), which can act as a proxy for a crypto wallet, in addition to an actual crypto wallet (metamask, coinbase, etc.), allowing users to unlock and view their NFT with this ticket.
The Eluvio Content Fabric is a fully Ethereum compatible blockchain and also offers the ability to transfer a Fabric NFT to the Ethereum mainnet, and add it to any crypto wallet with an Ethereum mainnet address. Given a transfer API request, the Content Fabric will confirm the request, and transfer the NFT to a 721 contract on Ethereum mainnet, owned by the address specified. When this process completes, the owner will receive the contract address and an etherscan.io URL for viewing the transaction (e.g. by email notification). This process also creates the necessary metadata for the NFT to be viewed on 3rd party marketplaces like OpenSea, and returns those URLs.
The Eluvio minting mechanism allows the Creator to encode in this NFT a residual fee that will credit to the creator’s Ethereum mainnet address on future sales, both through proxy operator metadata (e.g. for 3rd party marketplaces) and for direct transfers.
Is my NFT still be accessible on the Eluvio Blockchain after I transfer it to Ethereum Mainnet?
Yes, even after you transfer of an NFT to mainnet, you are able to view it on the Eluvio Content Fabric. Its origins are permanently enscribed in the Eluvio Blockchain. More to come on all of this as the intersection of content and blockchain unfolds! To follow Eluvio and to learn more about the Eluvio Technology, please visit our web site at https://live.eluv.io/technology or contact us at https://live.eluv.io/contact.