Crowdfunding Non-fungible Tokens on the Blockchain

Abstract

AbstractNon-fungible tokens (NFTs) have been used as a way of rewarding content creators. Artists publish their works on the blockchain as NFTs, which they can then sell. The buyer of an NFT then holds ownership of a unique digital asset, which can be resold in much the same way that real-world art collectors might trade paintings.However, while a deal of effort has been spent on selling works of art on the blockchain, very little attention has been paid to using the blockchain as a means of fundraising to help finance the artist’s work in the first place. Additionally, while blockchains like Ethereum are ideal for smaller works of art, additional support is needed when the artwork is larger than is feasible to store on the blockchain.In this paper, we propose a fundraising mechanism that will help artists to gain financial support for their initiatives, and where the backers can receive a share of the profits in exchange for their support. We discuss our prototype implementation using the SpartanGold framework. We then discuss how this system could be expanded to support large NFTs with the 0Chain blockchain, and describe how we could provide support for ongoing storage of these NFTs.