NFT Development: Challenges and Opportunities

By juegoadmin | NFT Game Development | December 24th, 2021

NFT Development and Copyright: Hurdles and Opportunities

The gaming industry is in the throes of an unprecedented transformation. Traditional video games have now turned into major consoles leveraging hi-fi technology and slowly mobile gaming is taking over. 2D and 3D games are already creating a roar in the market. Now, with the addition of blockchain technology, the gaming industry has created a buzz among gamers. The benefit that the blockchain mechanism has brought to the gaming industry is brimming with possibilities and is mind-blowing.

The buzz around Blockchain

Without a doubt, blockchain will be the driving force of the gaming industry in the future. Initial coin offerings, smart contracts, and non-fungible tokens have gained the immense spotlight. With the rapid rise in crypto games, NFT/Non-Fungible Tokens developments now have captured the market’s attention. Blockchain games allow gamers to adopt, collect, trade, or buy virtual assets. Even though the NFT marketplace is selling hot cakes in the market, the various problems associated with them can’t be denied. One of the prominent problems is copyright.

Let’s look into the opportunities and challenges pertaining to the copyright issues surrounding NFTs.

Challenges of NFT Copyrights

1. Ownership problem

It’s important to be fully aware of the NFT ownership concept. Gamers often misunderstand the fact, thinking that owning an NFT digital network implies that the author has handed copyright to buyers, who then have proprietary rights to all the versions and copies of the work. However, the NFT marketplace does not work like that. When a gamer purchases an NFT, they can only have the ownership right on that specific version of the work. Hereafter, buyers can only use that part of NFT for personal use. If a purchaser resells, exploits or reproduces NFTs, they will be infringing copyright.

2. Royalty payment challenge

NFT game development is attracting a lot of organizations as it offers many advantages to NFT authors, specifically the royalty payment. The smart contract, a wonderful feature of blockchain, is printed into NFT codes. This lets the circulation of royalties be paid to NFT ownership every time the underlying work is resold. However, here is the challenge. If NFTs are resold via different platforms, then unfortunately the default royalty payments will not be handed over to actual owners. Thus, smart contract development of NFT needs improvement to override this challenge and enhance the efficiency of the royalty payment mechanism. This will require diversifying the platforms as much as possible and enhancing the network.

3. Copyright violation issue

The NFT marketplace development is not bound by strict regulations and this lack of properly defined rules often leads to copyfraud. This refers to minting NFT work of a public domain without proper copyright from original authors. Also, this crunch of regulations leads to copyright infringement issues as well. NFT is often minted in a marketplace by someone who is not the author of the original work. In the present NFT marketplace development, anyone can illegally mint a copy of NFT work and a lot of complaints have been registered. They claimed that their original works were sold without their permission.

Even though NFT is very transparent and every information is stored in the network like transaction details, author info, the process of creating the work, etc., it is very difficult to guarantee the authenticity of the original work. Blockchain is a safe and secure network, but verifying the originality of NFT work is a great challenge.

Opportunities with NFTs

  • NFTs, which are in vogue, let creators expand their business.
  • These tokens can be leveraged for selling original copies of their work as well as for tracking the ownership.
  • A sale of NFT will guarantee their creation and copyright. It’s a stamp of authenticity.

But, for buyers, these are just digital collectibles with a restricted capacity of transfer and come with limited rights. Buyers can’t even produce more copies of the work.

Thus, whether the popularity of NFTs will eventually fade away or boom will depend on how such challenges are addressed.


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