Assetization is the process of turning digital media files into Web3 assets, which is an important step in making digital media more valuable, verifiable, and tradable.
When digital media files are assetized, they are given a unique identifier (Nid), which makes them traceable and verifiable within a decentralized network. This process helps to address issues of ownership, provenance, and copyright, which are prevalent in the digital media industry. It also makes it possible to mint NFTs and implement smart contracts to support the trading of digital assets. With this approach, it enables the monetization of digital media files and also handles royalties distribution.
By assetizing digital media, creators and owners of digital media can gain greater control over their creations and have new opportunities to monetize their work. Additionally, it also gives consumers the ability to own, track and verify the authenticity of their purchases and it also creates a more transparent, trustworthy and fair ecosystem for all stakeholders.
Assetization process include the following key components:
This refers to the process of preparing digital media files for assetization. This may include adding metadata such as description, creator information and the information on how this content is generated as well as creating a digital signature to prove the authenticity of the file.
This is the initial step of converting any digital media into a web3 asset. Besides the partner platforms in the Numbers ecosystem, Capture App also collects the necessary information for data preparation step automatically for App users.
This step involves registering the asset on the Numbers network. This can be done by uploading the files using API or Capture App provided by Numbers Protocol. Once the registration is done, Nid will be generated with the initial Commit and AssetTree on the blockchain. Nid is also the Web3 equivalent of a file’s address and it will be used to locate the asset on the decentralized web.
All assets registered in the Numbers network are covered by the monitoring engine powered by AI. This monitoring engine continuously scans the Web3 and AI spaces for potential invalid use of registered assets. In the event of such a violation, the asset owner will be notified.
Moreover, the asset creator can establish additional governance rules and policies to manage and control the assets within the Web3 ecosystem. This can include resolving disputes and making changes through the use of decentralized autonomous organizations (DAOs). Custody NFT is a unique digital certificate of ownership granted to the creator's wallet. Only the owner of the Custody NFT can define the governance rules.
Monetization is the process of earning revenue from the asset. After the initial assetization of digital media files, the creator, also the Custody NFT owners, can choose to create an Asset Contract which enables more complex actions such as royalty distribution or minting License NFTs to allow different use cases of the assets. These License NFTs can be sold in the marketplace, with revenue being distributed to the original creator based on the defined distribution plan.
Once the asset is registered, any subsequent changes to the asset will be tracked using a Commit. A Commit is a record of an update made to the asset, and it includes information about the update, such as the new asset tree file, the action performed, and who made the change. By having the ability to view all the commits associated with an asset, it is easy to trace the history of the asset and ensure its integrity and provenance of the asset.