Intellectual property (IP) is one of the biggest segments in the world economy, covering everything from works of art to AI models. Still, IP management is one of the most complicated and downright convoluted areas of law and business, often seen as one of the principal hindrances to broader accessibility of content of all kinds.
Story Protocol is one of the most promising solutions to this conundrum. A layer-1 blockchain designed specifically for tokenizing intellectual property, it can streamline all processes related to IP management and, therefore, boost content accessibility while ensuring proper remuneration for copyright holders and creators.
This article is a high-level overview of Story Protocol and its capabilities.
Story Protocol in a Nutshell
The regulation and management of intellectual property have long faced serious challenges stemming from the intangible nature of IP assets, ranging from art or even memes to complex AI models. The existing legal system cannot efficiently balance fair rewards for creators with content accessibility, innovations, and fair use.
As a result, this outdated system primarily benefits only a handful of creators and copyright holders, while the majority of IP is locked in obsolete and needlessly complex agreements. Added to that is the onrush of AI development and progress that dramatically outpaces existing IP regulation and management practices and turns content creators into mere data sources.
Story Protocol addresses those issues by converting intellectual property into programmable tokens on a Layer-1 blockchain compatible with Ethereum Virtual Machine (EVM). This simplifies numerous important functionalities, ranging from IP registration to licensing and royalty management via smart contracts.
This enables it to expand the options for creators when setting their own terms for their intellectual property, facilitate collaboration and remixing, and overall relieve IP management of most complexities associated with it.
Story Protocol is based on three main components: the Story Network (an L1 blockchain), the Proof-of-Creativity protocol (smart contracts), and the Programmable IP License (PIL). Technologically, Story Network combines the best features of EVM and Cosmos SDK, using precompiled primitives for rapid graph data reversal and a CometBFT-based consensus layer.
Thanks to the Proof-of-Creativity Protocol, creators can register their IP as IP Assets (IPAs). They can also use various modules, such as licensing, royalty, and dispute handling, to set precise terms for their intellectual property, manage derivative works based on their own, and resolve possible conflicts.
Finally, PIL is the bridge between on-chain tokens and off-chain legal conditions, filling the gap between blockchain entities and traditional legal systems in the same way stablecoins act as a connection between crypto and fiat.
Story Protocol uses smart contracts on the Proof-of-Creativity protocol to automate the enforcement of IP rights, tokenization to ensure a clear record of ownership on an immutable blockchain, and a set of modules facilitating licensing, dispute resolution, and royalty management. Finally, users can stake the tokens associated with IP to participate in protocol governance and IP curation.
As AI content becomes increasingly widespread, Story Protocol also allows for the registration and monetization of AI-generated models.
Story Protocol Ecosystem
Story Protocol has an extended ecosystem of projects that have already employed its solution for IP management.
Projects using Story Protocol’s solution:
The most prominent among them are as follows, according to Story’s official website.
- Magma, a collaborative digital art platform with 3M+ users, employs Story’s programmable IP features to assert ownership, enable authorized remixing, and ensure attribution and compensation in even the most collaborative scenarios.
- Mahojin is a remix AI layer that integrates generative AI power into third-party apps. It offers an innovative remix UX and vast model repository so that end users can easily create high-quality images in their preferred apps. For AI creators, Mahojin enables IP tracking and fair revenue sharing with an end-to-end connection to end users.
- Sekai is an AI storytelling platform that helps storytellers, artists, and fans co-create immersive interactive stories via simple prompts. It empowers fans regardless of their creative background. IP owners can create their universe and set the contribution rules, including monetization models.
- Space Runners’ Ablo allows anyone to customize and remix the latest fashion using generative AI tools, unlocking new monetization models for celebrities, designers, and brands. They have collaborated with major fashion brands, including Balmain Paris, Pangaia, Dolce and Gabbana, and Smiley.
Everstake x Story Protocol
Story Protocol is currently in testnet, where Everstake is proud to work as a validator and contribute our battle-tested equipment and expertise to support the network’s development.
We are looking forward to the long-needed change that Story Protocol can bring to the vast world of intellectual property and will be happy to do our part in making that happen.
The Future of Story Protocol
Story Protocol has the potential to become a game changer in the intellectual property industry. It dramatically simplifies the management of existing content formats while also being capable of working with cutting-edge solutions like artificial intelligence models.
Its structured approach to dealing with the complexities of IP management can usher in a long-awaited change in this area and make it better suited to the peculiarities and challenges of the modern era.
Learn more about Story Protocol from its official website.
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