> something I've been wondering about these kinds of transactions is what the NFT represents?
Most NFTs are either a URL or a hash of the digital content[1]. In either case, I guess you could call the content of the NFT a UUID (universally unique identifier) for the content that the NFT is labelled with.
> Is it the IP rights to the photograph?
The IP to the photograph can be sold along the with NFT. Someone could also create a contract saying that ownership of the IP is transferred with the NFT in the future, too.
Crucially, nothing can permanently tie the IP to the NFT. There is nothing stopping Owner #3, for example, from selling the NFT without the IP rights. The new owner of the NFT might misunderstand the situation, leading to a legal dispute.
In the end, IP rights come down to our current, human legal system. There is no way to escape that fact.
> Is it non-exclusive? Can the person in the picture sell other tokens against the same media if they want to?
No, it's not exclusive. Yes, a person can sell other tokens against the same media. I can sell an NFT of you if I want to.
That's why I very intentionally say that NFTs are labelled with their subject matter (painting, image, etc.), not that they in any way represent their subject matter.
I can go sell 150 million NFTs of the Mona Lisa tomorrow, if I want to. It just depends on whether someone is gullible enough to believe that someone else will pay more for them tomorrow than I'm asking for today.
Most NFTs are either a URL or a hash of the digital content[1]. In either case, I guess you could call the content of the NFT a UUID (universally unique identifier) for the content that the NFT is labelled with.
> Is it the IP rights to the photograph?
The IP to the photograph can be sold along the with NFT. Someone could also create a contract saying that ownership of the IP is transferred with the NFT in the future, too.
Crucially, nothing can permanently tie the IP to the NFT. There is nothing stopping Owner #3, for example, from selling the NFT without the IP rights. The new owner of the NFT might misunderstand the situation, leading to a legal dispute.
In the end, IP rights come down to our current, human legal system. There is no way to escape that fact.
> Is it non-exclusive? Can the person in the picture sell other tokens against the same media if they want to?
No, it's not exclusive. Yes, a person can sell other tokens against the same media. I can sell an NFT of you if I want to.
That's why I very intentionally say that NFTs are labelled with their subject matter (painting, image, etc.), not that they in any way represent their subject matter.
I can go sell 150 million NFTs of the Mona Lisa tomorrow, if I want to. It just depends on whether someone is gullible enough to believe that someone else will pay more for them tomorrow than I'm asking for today.
1. https://www.theverge.com/2021/3/25/22349242/nft-metadata-exp...