Copyright concerns, exploitation, and no royalties. These are only a few of the obstacles that musicians all over the world confront when it comes to creating and distributing their music. With the introduction of music non-fungible tokens (NFTs), it's possible that the music business can be revolutionized for artists.
What are music NFTs?
The year 2021 will be remembered as the year cryptocurrencies really started to take off, but it might also be dubbed "the year of non-fungible tokens." That's due to the numerous applications for these digital assets. Music NFTs is one such case.
A blockchain-based unique cryptographic token that represents a digital or physical asset is known as an NFT. Once an NFT has been generated, it can't be altered or reproduced. Furthermore, NFTs may be coded to pay royalties to the creator, making them a highly intriguing technology for musicians.
Music NFTs are music tracks recorded on a blockchain in the form of non-fungible, unique tokens that are exclusively owned by the owner of the NFT. Music NFTs, unlike mp3s you download to your smartphone, may also be sold and enable musicians to earn royalties for each secondary market transaction.
How do they work?
When it comes to the music business, NFTs can exist in a variety of forms. It might be a song represented by an audio file or video, an album cover, a concert ticket, and signed merchandise, among other things.
In the creation or sale of a music NFT, the mechanics are much the same as in other NFTs. A musician or band will choose what they wish to offer their fans, whether it's an audio file, concert tickets, or merchandise.They'll choose the blockchain on which they'll mint their NFT, as well as the Music NFT platform to utilize. Currently available Music NFT platforms include NFT TONE, Opulous, OpenSea, and others.
After determining on a platform, they will notify their fans of the NFT release and allow them to sell their items at whatever price they choose.
Because music NFTs (and all other NFTs) cannot be copied, they may choose to have a one-time sale of an audio file, with the highest bidder possessing the original audio file (but not the copyright). Alternatively, they might decide to produce a limited number of NFTs for the same audio file, say 10,000, and then sell them on a music NFT marketplace.
Every fan who purchases the music NFT owns a piece of their favorite musician's work. They may store the NFTs in their crypto wallets and, if they choose, sell them to a higher bidder at a later date. Despite the fact that they created the NFT and has the power to sell it, the musician who created it can profit from re-sales of his work, which is one of the most powerful ways music NFTs may help musicians.
Music NFTs have already been used by a number of artists and bands. For instance, Dj 3LAU created the Ultraviolet Collection, which sold for over USD 11.6 million in a single auction. Grimes, a Canadian musician, released a collection titled WarNymph in which she sold digital artworks for around $6 million in early 2021.
How they can empower musicians
Let's look at how NFTs can help musicians besides simply making money through present music sales.
Musicians who create NFTs and sell them will get a share of the revenue generated by their NFTs' subsequent sales. This will aid to alleviate the problem of musicians not earning money from the sale of their work, or just receiving low amounts from centralized streaming platforms.
Another significant issue that musicians confront is the fact that they frequently have a recording contract with a record label. In contrast, the most common method for independent musicians to make money is through streaming sites. Use of music NFTs allows artists to sell their recordings or products directly to their fans.
Building a Fanbase
Music NFTs allow a musician to build a following by providing fans with personalized NFTs about their work. For example, music events like NFT airdrops enable artists to reach people who would not have been able to see them otherwise.
Musicians can also profit from various fan experiences, such as the chance to hang out with them virtually or in person. This has previously been achieved by musicians including Snoop Dogg in his SandBox hangout session and Post Malone, who sold NFTs so that fans could play beer pong with him.
Providing Chances to New Artists
The low entry requirements for music NFTs are a fantastic gateway for new artists since no one is stopping them from putting out new material or forcing them to conform to any preconceived notions in order to score a recording contract. With music NFTs, all that a musician has to do is create their music on whichever platform they choose and market it to their fans.
There are just a few artists currently experimenting with the potential of music NFTs. However, as more people learn about them and embrace them, the possibilities for artists to profit from selling music NFTs is expanding significantly.