NFT Provenance and Ownership Rights Quiz

1. What does the term `provenance` refer to in general terms?

• The place of origin or earliest known history of something.
• The technique for making something appear more valuable.
• The process by which something is destroyed or erased.
• The amount of money something is worth in the market.

2. What does a provenance hash typically refer to in the context of NFTs?

• A hash of all the assets of an NFT collection before minting.
• The total sales price of an NFT after multiple resales.
• A digital signature from the artist included in the NFT.
• A unique identifier for each buyer of an NFT.

3. What is the purpose of a provenance hash in NFTs?

• To increase the market value of each NFT significantly.
• To allow artists to receive royalties from secondary sales.
• To provide exclusive access to behind-the-scenes content.
• To show that the assets on-chain are the same as those initially generated, and to detect any manipulation.

4. What happens if the assets of an NFT are manipulated?

• The NFT will automatically increase in value.
• Recalculating the hash would result in a different value than the provenance hash.
• The owner will lose access to their digital wallet.
• The NFT will be permanently deleted from the blockchain.

5. What do you purchase when you buy an NFT?

• A license to use the artwork in any form.
• A digital copy of the artwork without any rights.
• A certificate of authenticity for physical art.
• Sole access to and control of the smart contract of the NFT stored on the blockchain.

6. What is the private key used for in NFT ownership?

• To control the smart contract of the NFT.
• To grant copyright ownership of the artwork linked to the NFT.
• To allow anyone to access the NFT without restriction.
• To create new digital images associated with the NFT.

7. What happens to the private key when you decide to sell an NFT?

• The private key is destroyed permanently.
• The private key is transferred to the new purchaser.
• The private key is locked indefinitely.
• The private key is shared with multiple buyers.

8. Does owning an NFT automatically provide ownership or control of the copyright to the artwork linked to it?

• Yes, it grants full ownership of the copyright and artwork.
• Yes, it includes rights for reproduction and sales of the artwork.
• No, it does not automatically provide ownership or control of the copyright.
• It guarantees exclusive control over all derivative works of the artwork.

9. What is the presumption under current copyright law regarding the transfer of copyright rights to an NFT purchaser?

• The copyright automatically transfers with the purchase of the NFT without any further action required.
• The purchaser receives full copyright ownership along with the NFT purchase.
• The copyright does not transfer to the purchaser unless the copyright owner takes an affirmative step to transfer or license the copyright.
• Copyright rights are transferred only if the NFT is sold at auction.

10. What can an NFT purchaser do with the artwork linked to their NFT?

• The purchaser can create unlimited copies of the artwork without any restrictions.
• The purchaser is granted full ownership of the copyright to the artwork linked to their NFT.
• The purchaser can use the artwork for any commercial purpose without permission.
• The purchaser cannot make copies of the original work or create derivative works without separate transfer or licensing of the copyright.

11. Can anyone make copies of the digital image linked to an NFT?

• Yes, anyone can make a copy of the digital image, but the NFT owner is the registered owner of the designated original copy.
• Yes, but only if they have permission from the NFT owner.
• No, making copies is illegal regardless of ownership status.
• No, only the NFT creator can make copies of the digital image.

12. What is an assignment of copyright rights?

• A temporary permission to use copyright material without a written agreement.
• A form of partial ownership granted to the purchaser through an informal agreement.
• An assignment of all copyright rights to the purchaser, which must be performed in writing.
• A verbal agreement to share copyright rights among multiple parties.

13. What is a license of copyright rights?

• A temporary rental of copyright for a limited time.
• A grant of exclusive rights to the artwork`s creator only.
• A license of fewer than all copyright rights to the purchaser.
• A transfer of full copyright rights to the purchaser.

14. How does Chaintech Network approach provenance tracking?

• Chaintech Network tracks provenance by storing information on local databases that can be easily modified.
• Chaintech Network relies on third-party audits to track asset history and integrity.
• Chaintech Network uses paper records to document each transaction and asset change over time.
• Chaintech Network uses a blockchain platform to capture every historical point of an asset, providing increased transparency and resistance to alteration.

15. What information is recorded in the blockchain database by Chaintech Network?

• The color and size of the NFT.
• Every transaction or status change made by the user.
• Only the original creator`s name.
• The geographical location of the NFT`s creation.

16. What boosts the levels of trust in Chaintech Network`s approach to provenance tracking?

• Manual record-keeping by asset owners.
• Regular audits conducted by third parties.
• The use of physical certificates to verify ownership.
• The ability for each participant in the chain to see the transaction history of the asset without middlemen.

17. How are NFTs created?

• Through a process called minting, where the asset`s information is encrypted and recorded on a blockchain.
• Through a method of printing physical copies of the asset.
• By creating a duplicate file and saving it in multiple locations.
• By simply copying the digital file and posting it online.

18. What is involved in the minting process of an NFT?

• A unique visual representation is drawn by an artist before the NFT is minted.
• A new block is created, the NFT information is validated by a validator, and the block is closed.
• The NFT is printed and shredded before sale to verify authenticity.
• Users vote on the NFT`s design before it is put on the blockchain.

19. What smart contracts are often incorporated during the minting process of an NFT?

• Smart contracts that assign ownership and manage NFT transfers.
• Smart contracts that convert NFTs into fungible tokens.
• Smart contracts that generate standard copies of NFTs.
• Smart contracts that track physical locations of artworks.

20. What is unique about each NFT token?

• Each token contains the complete history of an artist`s other works.
• Each token represents a physical piece of art stored in a gallery.
• Each token has a unique identifier directly linked to one blockchain address.
• Each token can be easily replicated and modified by anyone.

21. What is the significance of each NFT having a unique identifier?

• Each token can be distinguished from others, even if multiple tokens represent the same item.
• All NFTs can be traded for identical value, as they are the same asset.
• The unique identifier is irrelevant in the marketing of NFTs.
• NFTs are created randomly without any specific identification.

22. What is an example of popular NFT provenance?

• A personal collection of unverified digital art stored offline.
• A digital collectible without a recorded transaction history.
• A famous gallery like MOMA or PACE holding an artist`s NFT in their wallet that is verified, allowing the world to see the times and dates of ownership.
• A random image shared on social media without any ownership claim.

23. What is another example of popular NFT provenance?

• A meme shared widely on social media platforms.
• A digital photograph of a sunset sold at auction.
• A popular YouTube video uploaded by a famous creator.
• The first tweet ever by Jack Dorsey that was minted on the blockchain.

24. What is an example of a collection of digital artworks that demonstrates NFT provenance?

• A compilation of stock images sold through traditional galleries.
• A variety of free-to-use vector graphics online.
• A collection of digital artworks made by a famous artist like Beeple or xcopy.
• A set of digital photo filters used on mobile devices.

25. How do artists and creatives bridge the digital and physical divide in NFTs?

• By using social media platforms to showcase their work.
• By storing their artworks on the blockchain using a digital signature attached to each piece of art.
• By creating physical representations of digital artworks for display.
• By selling prints of their digital art to collectors.

26. What is the role of metadata in NFT provenance?

• Metadata is used to create more NFTs without restrictions.
• Metadata serves only to improve the visual quality of the NFT.
• Metadata contains important information about the artwork and its history.
• Metadata tracks the financial value of NFTs over time.

27. What is the significance of storing artworks on the blockchain?

• It provides a record of ownership and authenticity.
• It guarantees copyright ownership of the artwork.
• It eliminates the need for artists to create new works.
• It creates unlimited copies of the artwork.

28. What is an example of NFTs with added utility?

• Standard JPEG images sold on online marketplaces.
• Any traditional painting displayed in a gallery.
• Collectible tokens mintable by a celebrity or group, such as those frequently used with Proof and artists like AOKI.
• Digital stickers that can be sent through messaging apps.

29. How does NFT provenance change the art world?

• It eliminates the need for galleries and physical exhibitions.
• It reduces the market value of traditional artwork dramatically.
• It enhances authenticity and transparency by providing a record of ownership and history.
• It complicates the selling process for artists and collectors.

30. What is the impact of NFT provenance on trust in the art market?

• It increases trust by providing a transparent and tamper-proof record of ownership and transactions.
• It neither affects trust nor provenance in any significant way.
• It replaces traditional authentication methods entirely.
• It decreases trust due to the complexity of the technology involved.