New Narrative of On-Chain Intellectual Property: How to Navigate Story Protocol Led by A16Z

Author: Web3 Scent Observation, Coin World

Recently, the intellectual property blockchain Story Protocol successfully raised $80 million in a Series B funding round led by a16z crypto, bringing its total funding to $134 million, attracting significant attention from the crypto industry.

Story Protocol is currently in its early stages, having just launched its public testnet, with plans to officially launch its mainnet by the end of 2024. As a Layer 1 project, it is likely to conduct airdrop rewards upon the release of its mainnet. Those who are optimistic about the project can participate in the testnet interactions in advance to prepare for the airdrop.

As we all know, the application scope of intellectual property is very broad, almost involving all aspects of daily life. Therefore, the application of blockchain technology in the field of intellectual property has enormous potential. Story Protocol aims to provide innovative IP management solutions for creators by tokenizing intellectual property and combining NFT (non-fungible tokens) and smart contract technology.

Before discussing Story Protocol, let's first understand the current state of the intellectual property market and the challenges it faces.

Current State of the Intellectual Property Market and Challenges

Traditional intellectual property management relies on complex legal systems and manual verification, leading to inefficiency and lack of transparency, making it difficult to meet the demands of digitization and globalization. With the development of blockchain technology and the Web3 ecosystem, the intellectual property (IP) field is undergoing unprecedented changes.

According to relevant statistics, in 2020, the global intellectual property market was valued at approximately $180 billion, and it is expected to continue growing at an annual compound growth rate of 8.5% between 2024 and 2028. However, despite the expanding market size, traditional management models still face numerous challenges.

Existing IP management models rely on centralized legal systems and cumbersome manual verification, which not only results in inefficiency but also struggles to cope with the complex demands of globalization and digitization. Issues such as frequent cross-border infringement, difficulties in licensing, and lack of transparency are particularly prominent. Additionally, the rise of generative AI has spurred a boom in content creation but has also introduced new problems of deepfakes and copyright infringement, especially in the music and film sectors.

Blockchain technology offers effective solutions. Its decentralized, transparent, and immutable characteristics can significantly enhance the protection of intellectual property and improve the efficiency and security of licensing and transactions.

Detailed Explanation of the Story Protocol Project

Story is a blockchain-based intellectual property (IP) management platform that provides a new way to create, manage, and license intellectual property on-chain. Through this platform, creators can create, manage, and license intellectual property on the blockchain, forming a modular and composable storytelling ecosystem. Story Protocol offers a simplified framework that supports the entire lifecycle management from work tracking, IP licensing to revenue sharing.

It is reported that the project has currently raised over $134 million, with investors including well-known institutions such as A16Z, Foresight Ventures, and Polychain.

The platform aims to become a decentralized IP ownership repository suitable for various types of content, including text, images, and audio. In the future, creators will also be able to sell licensing rights for their works through the platform and receive revenue sharing through smart contracts.

Story Protocol leverages blockchain technology to help content creators supervise and manage their works, especially in the face of AI-generated content, to combat the proliferation of deepfakes and infringing content, enabling creators to fairly obtain attribution and revenue in a fully prosperous content ecosystem. This ensures that their copyright and economic rights are protected.

Four Major Modules of Story Protocol

Story is composed of four main modules: Story Network (L1), Proof-of-Creativity Protocol (smart contracts), Programmable IP Licenses, and the ecosystem.

Story Network: This is a general-purpose Layer 1 blockchain that has been optimized to handle complex data structures quickly and efficiently. It is user-friendly, EVM-compatible, and allows for creative expression.

Proof-of-Creativity Protocol: The Proof-of-Creativity Protocol is natively integrated into the Story Network, supporting IP functionalities. This protocol enables permissionless licensing and automatic royalty payments, ensuring automation and transparency in IP management.

Programmable IP Licenses: Programmable Intellectual Property Licenses (PIL) bring intellectual property onto the blockchain, providing on-chain liquidity for a multi-trillion dollar asset class. This makes the management and trading of IP assets more flexible and efficient.

Application Ecosystem: Tokenized IP assets will build a new ecosystem of applications and experiences, providing rich opportunities for various roles and industries. It not only promotes innovative uses of IP but also offers participants ample room for development.

Claim Tokens and Participate in Early Interactions

Claim Tokens: You can claim tokens through the OKX wallet claim center page. First, connect your OKX wallet, then complete three tasks: 1️ Deposit, with a wallet balance greater than 10 USDT; 2️ Post about the OKX claim center; 3️ Follow the official Twitter. After completing all tasks, you can claim 2 test tokens (IP).

Interactions: After claiming the test tokens, you can interact with popular projects within the Story Protocol ecosystem. Its ecosystem includes AI, creator platforms, DeFi, and infrastructure, which will not be elaborated on here.

Additionally, in the Color Marketplace on the Story Protocol testnet, users can claim commemorative NFTs.