NFTs are in rough waters these days. With the markets falling, individuals are having second thoughts about owning these non-fungible tokens. But what if I told you that the use cases of NFTs go beyond simply being an asset (or a.jpeg) in your wallet?
Imagine buying a game you’ve always wanted to play. You purchased the game, played it for days and nights (we’ve all been there, haven’t we? 👀), and finally completed it. Wuuhuuu!! That is incredible! 🥳
So, what happens next? Normally, it would be tossed onto the pile of completed games and that would be the end of it. The most you can do with it is replay it, which is great. But what if I told you that your game can also serve as a limited edition access pass? This pass is easily transferable, cannot be lost, and can be quickly sold too.
You might be thinking, “No Way!” Spoiler: Way! This is one of the most effective applications for NFTs.
Software Licensing NFTs have the potential to solve one of the market’s fundamental issues: traditional software licenses are difficult to manage. Your licenses are tied to various accounts across various centralized entities that own your assets at the end of the day. These are called Digital Rights Management systems. A quick background video can be found here.
Not only that, but most license keys are shared through email, an insecure protocol — and it is quite easy to lose that email. That is scary to even think 🤯
Instead, buying the underlying NFT is a straightforward and verified way of transferring a software license to a new owner. Through the cryptography that powers wallets, we can replace these complex DRM (digital rights management) systems with a quick wallet signature and balance check! We can also use systems like Lit Protocol to tie the Software License NFT into encryption rules and enable software that can only be decrypted by the NFT owner!
Diving into Digital Ownership ✨
As the term implies, digital ownership is the possession of virtual intellectual rights over a digital entity. Until now, we had to pay for such privileges through a third-party app. However, with the arrival of this new Web3 realm, particularly Digital Ownership, the process becomes easier.
Consider playing a game with tons of cool skins and assets for your character. Most of the time, they are only accessible in premium versions of games, and to obtain them, you must first link your bank accounts or obtain authorization from Apple or Google Pay. Not only that, but in most cases, these premium features are only accessible for a limited time and must be renewed to continue using them. Because premium accounts are also housed on centralized servers, they can be hacked and compromised, resulting in the loss of these assets. Though the conventional method of purchasing virtual items is good, it does have drawbacks. Digital ownership is here to solve those exact problems.
Did you know?
Vitalik Buterin actually created the Ethereum chain after his beloved character from World of Warcraft was nerfed by the developers. He says “On that day I realized what horrors centralized services can bring.”
But Why Though? 🤔
NFTs are more flexible than traditional transfers since we do not rely on a third party. If we want to sell a license, we can simply list it for a certain amount, and anyone who wants it can buy it immediately by linking their wallet, and Boom! We’re done!
When it comes to selling subscription or licensing data, you normally have to go through a rigorous publishing and verification process, set up a bank account, and then rely on a centralized app store and payment infrastructure. This is an exhausting procedure; why should we have permission from vendors such as Apple, Google, or Steam to publish and monetize our hard work? On the other hand, in the blockchain world, all you need is a wallet and you’ll have your license in no time!
Valist Can Help! 👀
We at Valist are huge fans of technology that does not require the intervention of a third party. Valist assists developers in monetizing their ideas, effectively turning them into products. A Valist project may be wrapped inside an NFT and commercialized. Ownership of a product’s NFT entails ownership of the product’s license.
Valist makes it incredibly simple to token gate your software and games. With this feature, you can effortlessly distribute your open-source, freemium, or even premium software to your target audience without the burden of obtaining bank clearances, linking third-party software, and so on.
The configurations that you need to keep in mind are:
- Payment in MATIC and any ERC-20 token on the Polygon network (more networks coming soon)
- Setting supply limits for the product. This is great for special editions/releases.
- Built-in Royalties to monetize secondary item sales.
For more information check out: docs.valist.io
Wuhhuu! We are done!
I hope this post gave you a better understanding of Software License NFTs and Digital Ownership. It’s always a good idea to stay on top of emerging technology since you never know when they’ll take off and become mainstream. If you have any more questions, feel free to visit our Discord channel and ask your questions; we’ll be pleased to answer them.
Have a great day!✨