Initialization.
✓ Account registration. Bob creates an account as a creator on Spores platform via Issuance & Management Interface (IMI). Then Bob is provided a public address on a blockchain associated with a private key. Bob’s account is secured by an ECDSA technique which cannot be hacked. Now, he may proceed to issue any NFT representing ownership over his own digital artworks.
✓ Copyright checking. Firstly, he must upload the card file for checking. The AI assistant will search for existence and measure similarity of the likes throughout popular NFT marketplaces. If the similarity index is greater than a predefined threshold, then the AI tool will report copycats. Otherwise, Bob can proceed to next steps. This checking is to ensure originality of the work, hence protecting copyright and intellectual property compliance.
✓ File storage. The card file will be uploaded to a cloud storage platform. Typically, Spores uses IPFS protocols (e.g. Storj, Filecoin, Bittorrent) to host the file.
Tokenization.
✓ Deploying contract. After passing the check, Bob can choose and set parameters to issue one or many NFTs identifying his card. This action is easy as the template has user-friendly design such that everyone can go without coding skill. Popular contract standards are ERC-721/1155 and EIP-2309 which fit different needs of the creator.
✓ NFT storage. After the deploying contract is triggered1, the NFT is now a record on the underlying blockchain, which identifies the digital file and its ownership. Only the private key holder has the right and control over the NFT. Bob can hold it, transfer the ownership to others, auction for money or exchange for other cards.
Auction (exchange) on Spores marketplace.
✓ Posting. Bob posts his NFT for an auction on Spores marketplace. The auction may be powered by a smart contract.
✓ Bid ordering. Collectors will join the marketplace to search posted auctions, find what they want and then place bid orders on active auction sections. A certain fund deposit on a smart contract is required to place bid orders.
✓ Execution. During an auction section, all bid orders are recorded. The top winners are selected, according to predefined rules, when the auction ends. Then, the marketplace will forward the winner list to corresponding smart contracts and their underlying chains for settlement and ownership transfer.
Settlement and ownership transfer.
✓ A period of time is given for the top winner to make full payment associated with the winning bid order. If the winner cannot pay within the locking time, he will lose the deposit and the right is moved to the second winner, so on until the end of the winner list.
✓ When the payment is settled in full, the NFT ownership is simultaneously transferred to the payer.
✓ A fee is applied for a successful transaction (e.g. auction). If the auction is replaced by an exchange for another card or crypto asset, the procedure is much simpler. Two parties should agree on an atomic swap contract, then payment and ownership transfer are executed accordingly without any bid order or deposit. A fee is applied for any type of transaction.
