Chainfeeds Introduction:
Last week, Story Protocol announced the launch of its final testnet, Odyssey. Nearly 100 ecosystem partners are building killer applications on Odyssey. As the last testnet before the official launch, let’s take a closer look at what changes Story Protocol is about to bring to the IP industry with its huge $140 million financing.
Source:
https://mp.weixin.qq.com/s/f9ImEmkZ45Dj-UXqFvEzIg
Article author:
Frank Fu
Viewpoint:
IOSG Ventures: Story Protocol's main innovation is its ability to provide IP owners with a comprehensive and open solution to manage their IP assets. This includes features such as verification, authorization, traceability, and automatic profit distribution and claims, all with enhanced programmability. Story Protocol built an EVM-compatible L1 blockchain using Cosmos-SDK, allowing IP owners to easily register their intellectual property as IP assets on L1. Story Protocol records multi-level parent-child relationships between various IP assets, where each asset can be a Web 3 native NFT or an on-chain proof NFT of a real-world IP. In bringing real-world IP to the chain, Story Protocol has also developed a code-based contract template called a Programmable IP License (PIL). With PIL, IP owners can map off-chain licensing terms to the blockchain by attaching PIL to their IP assets. Story Protocol acts as a new middleman, replacing traditional intermediaries such as legal and consulting services, which are costly and cumbersome. This innovation significantly lowers the entry barrier for IP licensing, while ensuring that derivative works and remixes are controllable and traceable, ultimately protecting the originality of IP owners and derivative creators. However, some may express concerns about market heterogeneity. The customization of IP is virtually unlimited, and when over-customization occurs, it can lead to potential liquidity issues in the financial market. Solving the market liquidity problem is a key element that distinguishes Story Protocol from competitors such as Spaceport. Through the licensing module and the royalty module, all users of Story Protocol (including IP owners and derivative creators) mainly trade two types of tokens: licensing tokens and royalty tokens. Licensing tokens transform intellectual property derivative rights into tradable liquid assets, providing creators with a diversified source of income. At the same time, royalty tokens, as an asset-backed security, can tokenize future cash flows, thereby enhancing the liquidity of intellectual property asset owners and investors. This process reflects the benefits of asset securitization, allowing the income rights of intellectual property assets to be traded like financial assets. In addition, the purchase or sale of IP royalty tokens reflects investors' optimism or pessimism about the future income of IP.
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