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The ALL.ART Protocol defines upgraded NFT standards with embedded license rights and additional metadata crafted per industry needs stored on-chain, solving a major shortcoming of the current concept and opening doors to worldwide NFT adoption within a whole range of industries. We call this standard NFT-PRO.
License rights and legal contracts embedded into the very structure of NFTs and their behavior ensure that any transfer of ownership is properly managed on-chain, where both buyer and seller know exactly what the agreed arrangement is. As in real life, there can be multiple types and levels of license rights for a single NFT item, as well as different behavior models of these NFTs. Utilizing the next generation of NFTs, Web3 applications can access additional metadata and implement proper behavior for NFTs or give users proper permissions based on on-chain data.
The core of the ALL.ART Protocol is the new NFT infrastructure that supports creator economies and metaverses of the future. Metaverses are coming and NFTs play a key role in the transformation of digital ownership.
The protocol introduces creator pools with creator tokens; each NFT can then be traded using these tokens. Creator tokens are the main fuel powering creator economies of the future. NFTs are assets produced by creators, traded by creators’ communities using creator tokens. By launching their own cryptocurrencies, creators will have unprecedented control over how their NFTs are utilized.
Powered by new standards of NFT on-chain metadata, ALL.ART Protocol brings components, tools, and features that will empower creators to launch and facilitate their own ecosystems across industries. The protocol infrastructure establishes features like NFT Minting, NFT Escrows, NFT Bidding, NFT Auctions, NFT Advanced Trading, NFT Teleport, NFT Verification, KYC/AML NFT services, NFT Ticketing, NFT Estates, and creator economies based on NFТs.
ALL.ART Protocol runs on the Solana blockchain, which ensures four key benefits: blazing speed and low-cost transactions running on L1 scalability, low energy consumption, and upgradable smart contracts. Solana enables interoperability of protocols, apps, and standards, thus allowing an exponential speed of innovation.
A non-fungible token is a digital registration of a unique item, indivisible by nature. But, an NFT is much more than a binary relationship between an individual and the item. An NFT can have properties that define its function, usage, lifespan, connection with other NFTs, or even a representation of the same NFT on other chains.
Taking visual art or music as an example, each art piece has multiple levels of associated legal rights (licenses), even if it is registered as an NFT. Buyers should have ways of acquiring or interacting with different license models associated with the original artwork. An NFT also has metadata that gives more context to the underlying asset.
Currently, most of the properties of an NFT are represented as traits, but traits are not the only necessary metadata in different industries like music, traditional and contemporary art, or film. Traits are stored off-chain in JSON files. Depending on the type of storage, these files can disappear or even be updated without the owner's permission.
Addressing these challenges, NFT-PRO is essentially a multi-layer system of additional metadata sets on top of the core NFT token. These metadata sets are stored on-chain using Solana’s PDA account system, and linked to the core mint.
NFT-PRO has a three-layer system designed for the next generation of interoperable, legally compliant item representation on the blockchain.
Layer 1 (mandatory): the core NFT data layer, so-called basic metadata. It contains the main information about every NFT. That information is stored on-chain and represents an NFT item. The minting process creates an account for the NFT containing core metadata using the Metaplex standard on Solana, with information on the creator and important data fields. Additional data can be stored in an externally referenced file but is not mandatory.
Layer 2 (optional): additional metadata stored on-chain. This data set is not stored in a URI-referenced file, but in the account (Solana) itself. Additional metadata standards developed by ALL.ART Protocol cover different NFT types relevant to use cases.
License rights metadata. This metadata defines the scope of each license and the properties of an NFT (stored on-chain), and provides the link to the full license agreement stored off-chain. NFT-PRO can have additional license information (terms & conditions) linked to the layer 1 data structure, as well as additional metadata, making it effectively an NFT-PRO. Each license is represented by its own license receipt token, as proof of ownership of a specific license, effectively a non-fungible token of the license connected to the core NFT.
Traits metadata stored on-chain. Only by storing traits (properties) of an NFT on-chain can smart contracts (programs on Solana) use these data-sets. Utilizing properties of NFTs on-chain creates the base for new NFT use cases, from art, gaming, to identification, etc.
Cross-chain NFT metadata. To facilitate proper NFT cross-chain teleportation, it is necessary to store this data on-chain. This way, verification of original assets, their provenance, and authenticity can be properly tracked and utilized.
Virtual items metadata. Virtual items are much more than links to a file. Their traits do not define the complex nature of 3D objects that have multiple levels of details, layers of textures or materials. Metadata for virtual items have yet to be defined and standardized in order for these assets to be used properly across metaverses.
Layer 3 (optional): transaction layer; auctions, escrows, liquidity pools, order books or other sales mechanics. Once new metadata layers are ready, the transaction layer (a market) can be created for NFT-PROs, either through bidding systems, auctions or order books/liquidity pools managed by ALL.ART Protocol.
This evolution of NFT standards has yet to come. Once advanced NFT properties become the standard, we can more easily on-board industries who are new to the concept of NFTs and their value. By providing proper data structures, APIs and tools, we will ensure the concept of NFTs will become easier to adopt.
We are now at the dawn of a new era—the era of metaverses. The driving force behind it will not be virtual and augmented realities, but the transformation of ownership. We will finally own our data, assets, items, and estates. This is, of course, possible by using NFTs as the base layer of ownership records. What was once bookkeeping and government-run registers has now become blockchain ledgers handling NFTs.
Metaverses will exist in many forms and be run by various companies who will fight for your virtual presence and the time you spend in these worlds. One common denominator are virtual assets and their utilities. But real-life objects will find their way into virtual worlds, too. Connecting real life and virtual life will be the next big step for metaverses. Assets entering and exiting virtual worlds will be done through NFT technology.
We have already experienced this through our exhibition platform VR-All-Art, a metaverse of galleries and museums, where every item and asset represented must be “NFTized” before entering the metaverse. This presented a challenge that initiated the development of the ALL.ART Protocol. We were faced with the question, “How do we effectively represent ownership of a real-life object in the virtual world?” The answer is: we need better standards, tooling, and NFT-powered trading protocols that will unleash the true power of purchasing, exhibiting, and trading virtual items in metaverses. This is why we are building ALL.ART Protocol—it is a solution for all NFTs in metaverses.
An important property of the metaverse not to be overlooked is “the digital twin”—you, in the form of an avatar. Who are you in the metaverse? What do you wear? How do you express your inner self? How do you show what you believe in and what you support? Personal items will become the most valuable digital assets used across worlds and apps, all represented as NFTs. Virtual collections created by artists, brands, and engineers will become new drivers of virtual-world economies. VR-All-Art’s avatar system is built for this transformation.
Virtual real-estate, another property of the metaverse, will become more and more valuable as people spend more time in augmented and virtual worlds. Presented now as NFTs, these estates are valued and traded. At the crossroads of the real world and virtual worlds, it is clear that current NFT standards need further development.
$AART is the native digital, cryptographically-secure token of the ALL.ART Protocol. It is a transferable representation of utility functions specified in the protocol/code of ALL.ART, and it is designed to be used solely as an interoperability utility token of the protocol. $AART is a non-refundable, functional utility token that will be used as a medium of exchange between users of the protocol.
As the native infrastructure token of the ALL.ART Protocol, $AART will power all utility functions and provide liquidity in future creator economies based on NFTs. $AART is a general-purpose, infrastructural utility token used in all services associated with the new NFT-PRO standard and the ALL.ART ecosystem elements, products, and partners.
$AART will be used in all services and products released by ALL.ART Protocol and across its ecosystem. Further mechanics will be implemented in each product/service and elaborated separately. $AART will be used for trade fee reduction and paying fees; staking for better visual positioning and ranking, activating special features, services, and products; staking/insurance for validation, yield-farming, virtual estate purchasing and claims, etc.
One of $AART's utility functions is to provide automated liquidity in creator token pools, effectively igniting creator economies. Users will first buy $AARTs on an open market and exchange them for creator tokens. Users can then buy a creator’s NFTs by staking/locking creator tokens to unlock NFTs. This mechanism will become a new model of releasing NFT assets. It directly drives the value of creator tokens in creator economies. As $AARTs are used in all creator pools, they become a unified standard for valuing creators and their NFTs. This kind of solution opens up the possibility for easy swapping of NFTs as well as creator tokens themselves, as they are all collateralized in the same value of exchange.