In traditional intellectual property management, content creators usually rely on traditional platforms to display their works. However, these platforms often profit from them through opaque revenue distribution mechanisms, making it difficult for them to obtain fair value for content creation.
Creators face multiple challenges: first, it is difficult to protect rights. Creators often find it difficult to prove the source of their rights, and the off-chain process is cumbersome and lacks transparency; second, the distribution of profits is unfair, and the profits of a large number of IP derivatives cannot be accurately returned to the original creators; finally, the authorization process is complicated, and manual negotiations and paperwork consume a lot of time and energy.
To solve these problems, Story Protocol provides a decentralized way to change the interaction between content creators and consumers, using blockchain technology to ensure ownership, transparency, and fair distribution of content, allowing creators to focus on creativity itself.
1. What is Story?
story protocol - Introducing the global intellectual property blockchain
Story is a purpose-built layer 1 blockchain designed for intellectual property. It can tokenize any type of IP; whether it’s an idea, an image, a real-world asset, a song, an AI model, an NFT, image rights, or anything in between. By embedding terms of use, attribution, and royalty agreements directly into the blockchain, Story provides a transparent, decentralized solution for IP management. This enables IP holders to protect their work, collaborate seamlessly, and unlock more revenue opportunities in the AI-driven economy.
Project Background
Story Protocol was founded by Jason Zhao, Seung Yoon Lee and Jason Levy, and the team behind it brings together experts in Crypto, intellectual property and AI technology. In addition, it has completed three rounds of large-scale financing since 2023, with a16z investing in three rounds in a row, pushing the total financing amount to US$134 million.
2. Story Technical Architecture and Implementation
The Story Protocol as a whole consists of multiple elements: the Story Network (L1), the Proof of Creativity Protocol (smart contracts), and programmable IP licenses.
Story Network
Story Network is a purpose-built layer 1 blockchain that implements the best features of the EVM and Cosmos SDK. It is fully compatible with the EVM and has deep execution layer optimizations to support graph data structures, designed for fast and cost-effective processing of complex data structures such as IP. Specific implementation methods include:
- Use precompiled primitives: traverse complex data structures like IP graphs in seconds at marginal cost.
- Consensus layer based on the proven CometBFT stack: ensuring fast finality and low-cost transactions.
Creativity Protocol
Story's "Proof of Creativity" protocol introduces a revolutionary open programmable IP layer, elevating IP to a first-class entity in the blockchain ecosystem. At the heart of the system is the 🧩 IP asset and its associated IP account, a smart contract designed to serve as the core identity of each IP. This account-centric approach enables the storage and management of IP-related data, as well as the manipulation of this data through 🧱 modules that perform various functions.
Modules are customizable smart contracts that define and extend the functionality of an IP account. Modules enable developers to create functionality and interactions for each IP, making IP truly programmable.
Owners of IP assets can set terms for their IP, and creators of derivative works can then seamlessly extend their works by minting “license tokens” (outlined according to the terms and represented as NFTs themselves), create revenue streams from derivative works using the Royalties Module, or raise disputes through the Dispute Module.
Programmable IP License (PIL)
PIL is a real off-chain legal contract that defines certain licensing terms and dictates how IP assets can be legally licensed. For example, how IP assets can be commercialized or remixed, and who is allowed to do so and under what conditions.
Although on-chain, the terms of the IP asset and the minted license tokens are enforced by an off-chain legal contract called the Programmable IP License (PIL). This contract allows anyone to transfer tokenized IP to an off-chain legal system. More specifically, the aforementioned IP asset and module are the means to automate and enforce these terms on-chain, thereby establishing a mapping between the legal world (PIL) and the blockchain, just as USDC supports fiat currency exchange, PIL also supports the exchange of IP.
3. Story Protocol latest project progress
Technology development progress:
Architecture design completed: Story Protocol’s basic technical architecture has been completed, and the core team is conducting in-depth testing and optimization to ensure the stability and security of the platform.
Smart Contract Development: Smart contracts for intellectual property management are being developed and will handle key functions such as content creation, royalty distribution, and copyright management.
Testnet has been launched:
Testnet: Story Protocol recently released a testnet for developers and community members to test the protocol functions. This stage will allow users to submit feedback to improve the various modules of the system and ensure that the platform reaches its best state before the official launch.
Next steps:
It is expected to launch the Story Protocol mainnet and launch a beta content creation platform to encourage creators to actively participate.
Latest News:
Story Protocal plans to launch TCP/IP for AI agents, aiming to build a trading market between AI agents. Since there will be countless AI agents on the chain in the future, these AI agents will have the need to interact and trade with each other. Story plans to integrate Eliza from ai16z and GAME framework from Virtual, etc., aiming to allow all agents to trade IP assets with each other in the future.
4. Challenges facing Story Protocol
In the process of promoting changes in intellectual property management and content creation, Story Protocol faces a series of major challenges that will not only restrict the speed of its development, but may also affect the overall success of the project. The following are the main challenges analyzed from several key perspectives:
1) Difficulty integrating existing IP
In the process of moving to decentralization, integrating existing intellectual property (IP) will be a difficult task. Especially on Web2 platforms, creators are usually required to sign an agreement to transfer part of their rights to the platform when registering. This practice is contrary to the goal of Story Protocol, which is to ensure that creators have full control over their content and profit distribution. Therefore, how to gain the trust of existing creators and encourage them to migrate to the new platform is a challenge that Story Protocol must face. If creators are already accustomed to the convenience and security provided by the existing platform, they may be cautious about switching to a new decentralized platform.
2) Interaction between the ecosystem and real laws
To realize the full potential of Storey Protocol, the mechanisms within the ecosystem must take into account how to effectively interact with the real legal system. Although Story Protocol provides a transparent and decentralized solution for IP management through smart contracts and blockchain technology, this does not mean that it can completely replace the traditional legal framework. When intellectual property disputes or violations arise, how to ensure that these legal terms are enforced on the chain and connected with real laws will be a major challenge it faces.
3) Mechanism design challenges from the creator’s perspective
From the creator's perspective, another challenge Story Protocol needs to face is its mechanism design, especially the reward mechanism. In Web2 platforms, content homogeneity is serious, and this problem may also reappear in Story Protocol. If the content between creators on the platform lacks differentiation, users' enthusiasm for participation will decrease, which will ultimately affect the quality of the content and the rationality of the rewards. Therefore, Story Protocol needs to design a differentiated incentive mechanism to encourage diversified creation and promote the generation of innovative and unique content.
Conclusion
Story Protocol is committed to providing content creators with a safer and more transparent intellectual property management and revenue mechanism by introducing a global intellectual property blockchain. The construction of a public chain, the introduction of programmable IP licenses, and decentralized content governance provide unprecedented protection and opportunities for content creators and users. Although challenges remain, Story Protocol is expected to play an important role in the future market as the demand for decentralized content platforms continues to grow. By adhering to technological innovation, market sensitivity, and legal compliance, Story Protocol will promote the sustainable development of the digital content economy and redefine the way intellectual property is managed and content is created.
