Posted by Monica Cardenas on 15 November 2022, in Byte Experts, News
Blockchain technology is essentially an update on how the web can function. A simple way to think of blockchain is as a digital ledger that many people can have access to, yet no single entity owns. When anyone adds information or makes a transaction, the ledger is updated automatically for everyone to see. This digital ledger is supported across multiple computers rather than one, making it incredibly secure. In addition, it’s only possible to add new signatures to the ledger, not to change or delete previous ones, which makes it incredibly transparent.
An NFT (or Non-Fungible Token) is a token that denotes ownership of a certain digital asset within this blockchain ecosystem. NFTs can be bought and sold as part of blockchain transactions, and because of blockchain’s transparency it allows for users to irrefutably own a digital item or product, something previously impossible.
How do these two concepts relate to books, and why should publishers, authors and book buyers be interested?
NFTs present the opportunity for digital first editions of books to be created (or “minted” in blockchain jargon). This would allow readers to actually own the digital books that they buy, whereas previously on sites like Amazon it has only been possible to rent (if Amazon blocked you or went down, you would lose your Kindle books). Blockchain books can never be lost, hacked or suppressed.
On top of this, authors should also be interested in NFTs for the secondary sales market, as it allows them to continue to make royalties on their work if it is sold on. Blockchain technology can allow for automatic royalty splits through smart contracts, so if a reader chooses to sell their copy of an NFT on the secondary market, then the author can get a portion of that sale in perpetuity.
NFT editions can include bonus content that could take on a variety of forms, including new content, audio or video, artwork, author introductions or fan messages, exclusive covers, and the opportunity to be a part of a unique community of fans, often including direct access to the author. NFT books allow fans and collectors of works to access a new and exclusive product, bringing readers closer and giving them an experience that extends beyond simply the purchase of the mass created e-book.
How can publishers and authors use them to create and sell books?
Publishers and authors can now mint digital books as NFTs to produce exclusive, trackable editions with a range of bonus content. These NFT books can be released in drops where only a certain number of copies are minted for purchase (this could be 1,000, 100 or even just 1 copy!), or it could be an unlimited supply based on a click and pay model. Only those who buy an NFT copy will ever be able to view it (if you tried to send the NFT book to a friend without making a sale on the blockchain, they would not be able to view the content). Publishers and authors can set their price, and this can even be in pounds and dollars rather than cryptocurrency.
This might sound similar to e-books (and in many ways they are!), but NFTs operate on a decentralised system, meaning that they cannot be taken down or deleted from an owner’s wallet (in which every blockchain user stores their assets), and so readers own NFT books in a way that they do not own e-books.
What would you say to anyone who is sceptical of NFTs?
I think the scepticism surrounding NFTs derives a lot from misinformation connecting them to the volatility of crypto markets, although in reality they operate in very different ways. It’s true that a lot of NFTs and cryptocurrencies can be bought for purely speculative reasons, but an NFT book has genuine value as a product for readers and fans, so in many ways it is immune from this kind of market turbulence (i.e. the fans will set the price, not the crypto market). Environmentally the technology has massively improved on carbon efficiency, and the cost to mint an NFT has also reduced significantly, making it more accessible to the mainstream.
Finally, I would say that the potential to tap into a new market in the very early stages should outweigh any weariness. NFT books are targeting a new and exciting readership that will only grow the publishing industry overall – just as audiobooks tapped into podcasters. NFT books can tap into blockchain enthusiasts along with more traditional fans, all at no conflict to the existing print, e-book or audio formats.
About BookVolts
BookVolts provides publishers and authors with the expertise and market platform to publish their books as NFT editions, assisting them directly with the whole process from start to finish. Authors earn 85% of initial sales of their work through BookVolts, as well as royalties of up to 10% on all secondary sales.
We have made it simple for readers to buy and access their NFT books by building the BookVolts reader app (available across mobile and desktop). This looks and feels very much like any other e-book reader, but it comes with the tools to access a range of bonus content across different formats too. We also remove any complications for blockchain newbies by setting up their wallet for them and handling the royalty payments behind the scenes if required.
James Faktor is Publishing Director at Lume Books, Founder of USound and Co-Founder of Book Volts, which utilises blockchain technology and publishes Digital First Edition books in NFT format. Learn more at https://bookvolts.com/about-us/.
