Hey Michael, thanks so much for your questions!
I actually have a couple of articles on the way, that directly address the key concerns people have about NFTs, and how Melon specifically solves them.
For now, my thoughts below:
"What is the NFT? Would it be a bonus panel for one of his comics for example? If it is, then he can choose to only sell, say, 100 bonus panels for a particular comic, making them high in demand amongst his 11k followers? So I could be an "owner" of one of those 100 bonus panels? If David gets 90k more followers, the value of his panels could go up, right? So I could choose to sell that limited edition NFT to another person if I wanted for a profit?"
Correct. The creator can simply turn their existing content into an NFT - the NFT is the unique set of code (also called "metadata") that authenticates each and every NFT, its provenance, ownership and history.
The visual you would receive is the actual content itself, as it is.
Once you purchase an NFT, you are free to hold or re-sell it for a profit (what is called the "secondary market"). This could be because other fans and collectors want the piece; the creator rises in popularity or has achieved a significant milestone; or, pure hype from the market.
"But if it's just an image, what stops me from just posting the image on a site? People steal and redistribute things like that all the time."
This is where blockchain comes in.
A blockchain is a giant database that records every transaction on the network. It encodes every item purchases with a string of code.
This code, the metadata, ensures the authenticity of an NFT. It also makes it easy to prove ownership of an asset, so it can't be disputed or altered by fraudsters.
All it takes is one look in the public blockchain, to see the asset and ensure it comes from the creator as advertised.
So whilst someone might try to take a screenshot and re-sell an image under their name, they would be easily caught red-handed with a quick look at the asset's details.
This is actually way more secure than the physical world, where anyone can make a fake copy of a Picasso and sell it for a tenner. In fact, many artists do this for a living and even an expert couldn't tell the difference from the original piece.
On top of this, as Melon we personally onboard every single creator. We have calls with each of them. They then all sign Terms & Conditions that confirm in writing they have ownership to any asset they choose to sell as NFTs on Melon.
"If I wanted to show a friend of mine my awesome David B. Clear bonus panel, or post it on my facebook (jk, I don't use facebook), how does that work? Is it just something I can enjoy from the comfort of my own devices?"
You can share a link to your NFT, and even use it as a profile picture if you wish (like many do with the likes of CryptoPunks).
Again, one look into the given blockchain will show who the original and current owner are, so this would be easy to verify (this is why some people share their wallet address, with which they purchased the NFT, so that people can verify they do own the given asset).
"Going back to your other comment about rewards, I see your point about being rewarded for buying an NFT, but at that point, are you buying the NFT because you really want it, or are you doing it just for the reward?"
Very good point Michael. It's a bit of both:
1) "Hardcore" supporters and fans who genuinely want to engage more closely with their favorite creators, unlock rewards, and be proud to own their NFTs;
2) Traders and collectors who want to turn a profit by re-selling the asset for a profit
And, likely, a combination. This creates a win-win dynamic for supporters, because they now have a vested interest in the creator's profile rising up. For creators, this turns their followers into an organic marketing and distribution team.
As you point out, a rise in popularity would drive a higher demand for their NFTs, which, at a fixed supply, would then increase in value. This unlock the potential for profit-making for the fans who purchased the NFTs early on, for instance.
I hope this answers some of the points. Don't hesitate to reach out with any more queries you may have !
Thanks,
Clément
