Let’s go back to the concept of smart contracts. A smart contract is a computer program stored on the blockchain that runs when certain conditions are met. So what kind of conditions are we talking about here and how can they be used by creators and businesses?

With collectible art projects, royalties can be programmed into the smart contract. Typically royalties are set at around 10%. This means that every time the NFT is sold, a percentage of that sale is programmatically sent to the original creator’s wallet. This guarantees that the original creators are always linked to their projects, a concept called provenance, and they’ll be able to share in the upside as their work becomes more well known.

Digital provenance is groundbreaking for art collectors who previously have had to rely on authenticity experts to determine if a piece of artwork is the real deal or not. And it’s estimated that up to 20% of paintings owned by museums could be inauthentic. But if there is a record of provenance on the blockchain, it’s immutable and verifiable forever. So if an unauthorized copy is created, it’s trivial to figure out that it’s a fake.

In some cases, creators have granted full commercial licensing rights to whomever owns their NFTs. There are now two different craft brew companies using Bored Ape NFTs artwork—North Pier Brewing Company’s Bored Ape IPA and Alternate Ending Beer Co.’s limited-edition “Drink Your Peas” beer can featuring Bored Ape #3500.

Let’s go back to the concept of smart contracts. A smart contract is a computer program stored on the blockchain that runs when certain conditions are met. So what kind of conditions are we talking about here and how can they be used by creators and businesses?

With collectible art projects, royalties can be programmed into the smart contract. Typically royalties are set at around 10%. This means that every time the NFT is sold, a percentage of that sale is programmatically sent to the original creator’s wallet. This guarantees that the original creators are always linked to their projects, a concept called provenance, and they’ll be able to share in the upside as their work becomes more well known.

Digital provenance is groundbreaking for art collectors who previously have had to rely on authenticity experts to determine if a piece of artwork is the real deal or not. And it’s estimated that up to 20% of paintings owned by museums could be inauthentic. But if there is a record of provenance on the blockchain, it’s immutable and verifiable forever. So if an unauthorized copy is created, it’s trivial to figure out that it’s a fake.

In some cases, creators have granted full commercial licensing rights to whomever owns their NFTs. There are now two different craft brew companies using Bored Ape NFTs artwork—North Pier Brewing Company’s Bored Ape IPA and Alternate Ending Beer Co.’s limited-edition “Drink Your Peas” beer can featuring Bored Ape #3500.