An artist is creating a generative art NFT collection. They want to ensure that the artwork is verifiably unique and that the algorithm used to generate it is transparent. Which approach best achieves this?

Store the artwork on a centralized server and provide a hash in the metadata.

Use a random number generator without publishing the seed.

Publish the generation algorithm and seed data on-chain, and store the resulting artwork on IPFS.

Keep the algorithm secret to maintain exclusivity.

A brand is launching an NFT collection that includes digital artwork featuring a licensed cartoon character. The brand has obtained a license to use the character in the artwork but wants to ensure that NFT buyers cannot commercially exploit the character themselves. What should the brand include in the NFT's metadata or terms?

A note that the NFT is not affiliated with the character's owner.

A statement that the NFT is a security and subject to securities regulations.

A clear license agreement specifying personal, non-commercial use only.

A statement that the NFT includes a transfer of full copyright to the buyer.

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Structure, Lifecycle, and Legal Considerations of NFTs BBLC Practice Questions (Page 8)

Part of the DeFi, NFTs, and Web3 Business Models domain, which makes up ~6% of our current practice bank.

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Questions 36–37

36expert · hard
An artist is creating a generative art NFT collection. They want to ensure that the artwork is verifiably unique and that the algorithm used to generate it is transparent. Which approach best achieves this?
Select an answer first
37application · medium
A brand is launching an NFT collection that includes digital artwork featuring a licensed cartoon character. The brand has obtained a license to use the character in the artwork but wants to ensure that NFT buyers cannot commercially exploit the character themselves. What should the brand include in the NFT's metadata or terms?
Select an answer first

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Structure, Lifecycle, and Legal Considerations of NFTs BBLC Practice Questions (Page 8)

Questions 36–37

An artist is creating a generative art NFT collection. They want to ensure that the artwork is verifiably unique and that the algorithm used to generate it is transparent. Which approach best achieves this?

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