Opinion by Yat Siu, executive chairman and co-founder, Animoca Brands
A discussion on digital property rights, copyright, intellectual property, the open metaverse, AI, and value without physical form.
When I engage in discussions about cryptocurrencies and NFTs – virtual objects like NFTs and cryptocurrencies – many ask how these items can hold real value when they don’t exist in the physical world. This question highlights a fundamental truth: intangibles have always held economic power. The key lies in ownership and its associated benefits.
A crucial example of this is copyright, which has been instrumental for centuries. This legislation – enacted in 1709 (The Statute of Anne) – established that the author holds exclusive rights over their work, not publishers. This framework fuelled innovation and helped societies thrive.
Modern economies are heavily reliant on these principles, with intellectual property forming a cornerstone. The same logic applies to digital platforms and metaverse worlds where ownership is central to how things work. These spaces rely on verifiable proof of ownership through blockchain technology for secure transactions.
Take the example of China: It experienced explosive growth in innovation once it strengthened its IP protection. This led to breakthroughs in science, technology, and creative industries, ultimately transforming them into global powerhouses.
In a world increasingly driven by AI and digital creations, we’re witnessing an evolution of these concepts. For instance, the emergence of generative AI raises concerns about ownership and copyright infringement. As AI develops, striking a balance between innovation and protecting creators will become even more crucial. Blockchain offers a solution to these challenges by providing secure and verifiable records that can track provenance and usage rights for digital assets.
Animoca Brands believes in making digital property rights a reality – empowering everyone to benefit from their creations through the use of blockchain technology. The open metaverse, where ownership is ingrained, could unlock unprecedented creativity and economic empowerment for billions of people. It’s an exciting time as we redefine value and ownership in the digital world.
This article provides general information and does not constitute legal or investment advice.