Story Protocol: The Rising Blockchain Star Reshaping IP Management
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Story Protocol: The Rising Blockchain Star Reshaping IP Management
Story Protocol leverages blockchain to revolutionize IP management, enabling creators to easily protect and license their works.
Navigating Web3 tides with focused insightsAuthor: dt
Editor: Lisa
Recently, aside from the continued downturn in the overall crypto market, on-chain memes have also gone quiet—much quieter compared to the same period last year. Only a few projects that haven't launched tokens yet have drawn attention from users, among which Story Protocol, recently announced to have secured an $80 million funding round led by renowned VC firm a16z, stands out as the most watched.
This week’s CryptoSnap Dr.DODO will walk you through what Story Protocol is all about!
Source: https://x.com/StoryProtocol/status/1815429614208250134/photo/1
Funding and Background
To understand Story Protocol, one must first look at its impressive background. Recently, Programmable IP (PIP) Labs, the developer behind Story Protocol, announced it has closed an $80 million Series B funding round. The round was led by top-tier venture capital firm a16z Crypto, with participation from Polychain Capital and others. Notably, the angel investor roster is equally strong, including Scott Trowbridge, Senior Vice President and board member at Stability AI; Adrian Cheng, founder of K11 and billionaire; and digital art collector Cozomo de' Medici. This latest round follows a $54 million Series A last year, bringing PIP Labs’ total funding to a staggering $140 million and valuing the company at $2.25 billion.
The team behind Story Protocol is also highly accomplished. SY (Seung Yoon) Lee, CEO and founder of PIP Labs, brings extensive entrepreneurial experience and deep industry insight. He previously founded Radish, a mobile storytelling platform, which was acquired by South Korean messaging giant Kakao for $440 million. He then served as Kakao's Global Strategy Officer, overseeing global investments and M&A activities, and is currently a venture partner at Hashed, South Korea's largest blockchain fund.
Core Technology: A Blockchain Solution Redefining IP Management
Story Protocol aims to revolutionize intellectual property (IP) management using blockchain technology, making the legal framework around creative IP more efficient, transparent, and user-friendly. Its core consists of three key components:
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Story Network (a purpose-built Layer 1 blockchain designed specifically for IP management)
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Proof-of-Creation Protocol (a smart contract system enabling creators to register their IP as "IP Assets")
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Programmable IP License (PIL, bridging on-chain IP assets with real-world legal contracts)
Story Protocol chose to build its own blockchain rather than operate on an existing one for several reasons. First, IP management involves complex relational networks requiring efficient graph data processing. Existing blockchains face performance bottlenecks when handling large-scale, intricate IP relationships. By building its own L1, Story Protocol can optimize at the base layer, significantly improving efficiency in traversing and storing IP graphs.
Second, Story Protocol envisions becoming the settlement layer for global IP, enabling cross-chain composability of IP. A dedicated L1 provides a unified hub for all registered IP assets.
Source: https://learn.story.foundation/
Ecosystem Operations: Innovative IP Management and Protection Mechanisms
Within the Story Protocol ecosystem, creators can register their IP as IP Assets and set usage terms. Other creators can view these terms directly on-chain, and if they agree, instantly receive authorization to begin creating. When derivative works generate revenue, smart contracts automatically distribute royalties according to predefined terms—all transparently and efficiently, without intermediaries.
Here’s a concrete example: imagine an animator named Alice creates a cute cartoon character. In traditional models, if another artist Bob wants to use this character in a short film, he must contact Alice and possibly hire lawyers to draft a complex licensing agreement—a process that could take weeks or even months. With Story Protocol, Alice can register her character as an IP Asset and set clear usage rules—for instance, free non-commercial use, or commercial use requiring a 5% royalty. Bob can check these terms on-chain, obtain instant authorization upon agreement, and start creating immediately. When Bob’s film earns revenue, the smart contract automatically sends 5% of proceeds to Alice—making the entire process vastly more efficient than traditional methods.
Story Protocol also features an on-chain dispute mechanism to address IP infringement. If someone uses another’s IP without permission, community members can raise a dispute on-chain. If validated, the infringing content is flagged and barred from further licensing or revenue generation. Additionally, through PIL integration with real-world legal systems, creators retain full rights to pursue legal action.
Source: https://learn.story.foundation/
Vision and Outlook: Building the Future of a Global IP Ecosystem
Story Protocol’s vision is to create a global repository and trading system for IP, empowering creators to build narrative universes from the ground up. It plans to allow major content platforms like Netflix and TikTok to run validator nodes, enabling direct transmission of IP data on-chain and fostering a fairer, more transparent content ecosystem.
Current Status of Story Protocol
Story Protocol’s mainnet has not yet launched, but its testnet is already available for early exploration. Interested users can add the testnet to MetaMask, claim faucet tokens ($IP), register their own IP assets, trade them on the marketplace Colormp, provide liquidity via PiperX, or participate in related tasks on platforms like Layer3.
Author’s Perspective
Story Protocol is one of the most intriguing projects I’ve seen recently. Unlike many current networks focused solely on high performance and throughput, Story Protocol’s L1 blockchain has a clearly defined functionality, directly addressing inefficiencies in today’s IP licensing processes through blockchain innovation. From the previous cycle’s NFT boom to this cycle’s Memecoin craze, it’s evident how valuable IP truly is.
As the digital creative industry continues to evolve, the importance of effective IP management grows ever greater. Story Protocol’s innovative approach may become a crucial bridge connecting creativity, technology, and law, injecting new vitality into the global creative economy. The road ahead is long, but Story Protocol’s bold vision undoubtedly points toward a promising future for intellectual property management.
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