Introduction
A quick overview of NFTs is here, NFTs are similar to crypto currencies but instead of holding coins, NFT can hold assets like art, tickets, and music. NFTs work on a blockchain, which is a widely accessible and apparent network meaning anyone can get the information of any NFT transaction. The Technology involved in the transactions becomes part of the network, which keeps updating the data and can’t be hacked due to its landscape as many-headed hydra. In the case of NFTs, their value becomes special and therefore fluctuates, all kind of stocks
NFTs previously had a discreet underground following made by the DJs and producers. But these digital tokens have gone mainstream in the last year, as many musicians pursued out additional revenue streams in the concert less era of the pandemic
How does NFT bring its music and artists to the mainstream?
Ownership –
NFTs can solve the problem of ownership issues faced by digital art. Before NFTs there was no fool-proof method of recording ownership data of digital art, yes it was present in consumption and even a follower can own them but there was no way to validate that and NFTs are solving that by recording the ownership data on communal block chains.
Direct Artist to Fan relationship –
NFTs are also trying to solve an issue that has been affecting the music industry for so long, that is the Direct Artist to Fan relationship. The recent streaming model is imperfect, a major portion of the streaming income generated goes to record labels, mediators, and artists.
In that value chain the artists are the ones who are least rewarded even when the whole industry is being made on their art. NFTs promises to solve that problem by reducing mediators and providing a new model where followers can directly own an art work where most of the profitable compensation goes to the artist and fans can also trade these owned portions of digital art in the secondary market and make some money while performing that.
Royalty Sharing made easy –
The smart agreements which are an important part of the blockchain network are trying to solve the royalty sharing problem, where copied data can be verified on the public blockchain and with smart agreements in place they can allow the transfer of royalties transparently to particular owners.
Another business idea using NFTs artists can sell a portion of their copyrights to invest in an upcoming album and in profit deal share of their royalty to those who bought those insignificant copyrights.
Music can be a long-lasting Asset –
The brand that records music is a true eternal asset, it has always been there but now this could become a mainstream awareness. NFTs allow ownership, accurate digital adequacy, the ability to have fractional ownership of digital art, tradability, and liquidity can increase a network where recorded music is being ventured and traded by the mainstream audience. A consequence is where a follower can own a piece of art, trade it, profit from it, or maybe loan the asset and take out a credit.
A Shift in the Value Chain –
Can NFTs bring a shift in the existing value chain in the music industry? Right now the artists assemble at the bottom of the value chain ladder of the music industry with record brands on Top. NFTs can bring a foremost shift in that value chain where artists might be on top of the chain, it could ease up the working of the whole network.
Why is NFT suddenly taking over the music industry?
Any music follower overcome by the rapid news assault about non-fungible tokens (NFTs), and the solid techno-babble there, may not expect to find clarity of an app designed to help musicians to easily create NFTs of their art that allows owners to monetize their art in blockchain technology
For users, buying these NFTs works as a seal of proof that the actual version of your buying is uniquely yours. Creators, can trade their art openly to followers by this mainstream marketplace steadily and the economy also gets changed each time the NFT is sold thanks to a special feature of this NFT.
Conclusion
NFTs right now are highly projected, the full effort feels like the early Bitcoin movement where everyone was hopping on the ship to get a piece of the pie. The values may be overestimated right now because NFTs have just started to get into the mainstream and every day more mainstream artists are implementing this new technology.