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What is a Story Protocol (IP)?
The meaning of the term “Story (IP)” in the world of cryptocurrencies is quite different from the narrative storytelling definition you first provided. In the context of cryptocurrencies, it is an abbreviation for a project called Story Protocol and its native cryptocurrency, the $IP token. This is a blockchain-based protocol developed to manage intellectual property (IP) rights for creative works such as art, music, text, or other creative works.
Here is a detailed breakdown of the “Story (IP)” concept within the world of cryptocurrencies:
What Is Story Protocol (IP)?
Story Protocol is a Layer-1 blockchain project that aims to transform the way intellectual property (IP) is created, owned, and commercialised. Traditional IP management is often a challenging and inefficient process for creators due to complex legal procedures, centralised intermediaries, and a lack of transparency. Story Protocol aims to solve these problems by leveraging the transparency, automation, and decentralisation offered by blockchain technology.
Essentially, Story Protocol enables the tokenisation of digital assets (artworks, music, texts, game characters, etc.) on the blockchain and makes the IP rights of these assets programmable. This allows creators to directly manage the rights to their works, automate licensing agreements via smart contracts, and receive royalty payments without the need for intermediaries.
How Does Story Protocol Work?
The operation of Story Protocol consists of several core layers and protocols:
- IP Registration: Creators register their works (for example, the text of a novel, an audio file of a song, or an image of an artwork) on the blockchain. This registration allows the work to acquire a unique digital identity on the blockchain as an “intellectual property asset.” This registration transparently proves who the creator of the work is and when it was first recorded.
- Smart Contract Licensing: After registration, creators can create smart contracts that set the rules for how their work can be used. For instance, an author might allow a section of their novel to be used by an AI and establish an automated payment mechanism for this usage. This means that “remixes,” “forks,” and derivative works can be managed automatically.
- Automated Revenue Sharing: As part of its smart contracts, Story Protocol automates revenue sharing. For example, when a derivative work (remix) made from an artist’s original work is sold, the smart contract instantly and automatically forwards the original artist’s share. This eliminates the delays and complexities experienced in traditional copyright systems.
- The $IP Token and Ecosystem: The native cryptocurrency of Story Protocol is $IP. This token is used to pay for transaction fees within the ecosystem, register IP assets, and participate in the network’s governance processes. In other words, $IP token holders have the right to vote on the future of the protocol.
Why Is It Important?
Story Protocol holds great potential for both artists and new technologies like artificial intelligence (AI):
- Fairness for Creators: Independent artists can gain full control over their works and receive immediate payment for their efforts, all without relying on large corporations or centralised intermediaries.
- Encouraging Innovation: Unlike the traditional system, Story Protocol encourages the easy creation of derivative works and remixes while protecting the rights of the original creator. This opens new doors for creativity and collaboration.
- Intellectual Property in the Age of AI: AI models require vast amounts of data to learn. Story Protocol aims to create a fair and transparent ecosystem in this field by making it easier for AI developers to access licensed intellectual property.
In summary, Story (IP) in the cryptocurrency world is not merely a concept of storytelling, but a revolutionary, blockchain-based technology project that enables creators to manage their works fairly and efficiently.
