What Is NFT Music?
While states are deciding how to regulate the digital coin market, the most promising sector of the economy is developing and creating new trends. These days it is crypto art and NFT tokens. Artists and collectors sell digital copies of art objects and earn millions of dollars. Any user can create their own NFT token. In order for the product to “shoot” and bring in income, you need an interesting idea. The rest is a matter of technique.
It is not only paintings and drawings that can be digitized. Today, NFTs are successfully used in areas such as digital art, gaming, fashion, fan and sports services, and the metaverse.
The authenticity of the artifact and the right of ownership is guaranteed by a virtual certificate – a record with data that is entered into the blockchain. Information is stored in the public domain, it cannot be changed or deleted.
Ordinary coins within the same network are interchangeable: they have the same value and attributes. With non-fungible tokens, things work differently. Each token is unique and cannot be copied. The identifying data is contained in the asset code, it cannot be changed or deleted.
Buying and selling crypto art is different from trading cryptocurrency. Artifacts are exhibited at special sites. Transactions are carried out in the format of a direct sale or through an auction. In the first case, the price of the asset can be negotiated with the counterparty. In the second, the lot goes to the one who offered the highest bid. The purchase is paid for with cryptocurrency or fiat. The NFT market sells everything from football cards to works of art. The seller can be both a media personality and an ordinary user. But big money is paid not so much for artistic value, but for the brand.
NFT Music Industry
Crypto art has become a new income for artists and collectors. But crypto art is not only paintings and photographs. Music is no exception: hundreds of artists have already released their own NFTs, as non-fungible tokens have opened up new ways for musicians to interact with fans in the NFT music industry. Such tokens can be issued for anything: for a song, album, video, concert tickets, photos, performance rights, royalty shares, merchandising, etc.
NFTs allow musicians not only to sell a token for a song, but also to provide access to exclusive content or unique opportunities. The big players in the music industry are also turning their attention to NFTs, not wanting to miss the trend. There are already dozens of dedicated music NFT platforms on the market.
Clearly, there are many motives for artists to use NFTs to sell their creations. But how else could the popularization and mass integration of NFTs change the music industry? Essentially, what is NFT music?
New ways to earn income. The sale of albums and tracks no longer generates significant income for musicians, and most of them earn very little on streaming platforms. 90% of the income from these services is received by 1% of the most popular performers, while the rest are content with modest payouts. NFT is a new source of monetization for musicians, who can thus count on the support of loyal fans.
Ability to share royalties with NFT holders. Smart contracts allow musicians to share part of the royalties with token holders.
New crowdfunding schemes. An unreleased album NFT holders may be eligible for 50% of future royalties. Such a crowdfunding scheme is more profitable for musicians than recording on a label, which will take much more for itself. This is also beneficial for fans, as it allows you to invest in the work of your idol.
Reducing the number of intermediaries. The use of NFT allows musicians to earn on their work with a minimum of intermediaries.
NFTs Music Industry Problems
What is nft music industry's main problem? Due to the decentralized nature, NFTs provide users with provable ownership, verifiability and availability of origin history. However, digital art objects are stored differently. For example, images or videos cannot be placed on the blockchain. Therefore, only a link to the product and its characteristics is entered into the asset code, which are hosted on external decentralized servers. Other problems of NFT’s tokens (?):
Different interpretations of intellectual property rights. Some assets can be freely disposed of. In others, the use of artifacts is limited.
Gas price fluctuations in ETH associated with network congestion.
Underdeveloped infrastructure for creating, buying and selling NFTs.
The NFTs music market is not yet regulated in any way, the legal nature of non-fungible tokens has not been determined. Ownership of NFT is not reflected in any legislation, therefore, with the acquisition of a token, its holder does not legally receive any rights. This creates risks of loss of ownership.
Another problem is copyright infringement. The owner of the NFTs music is entitled only to the token itself, and not to the work that stands behind it. Therefore, if the platform claims that it transfers the rights to the song to the buyers of tokens, this does not mean that such a transaction is legally valid.
It is also possible to release NFT without the permission of the author of the work.
How to Create an NFT Music Token
A collection object can be bought, received during the distribution from the developers, or won in the competition. But the easiest way to become the owner of an artifact is to make it yourself. This option is available on many marketplaces. Digital tokens are created using an intuitive interface and do not require programming skills. The author needs:
Fill out the form, indicating the technical parameters of the token.
Add a cover image and a link to a product detail page.
Upload file.
To record a transaction on the blockchain, you need to make a transaction and pay a standard network fee.
What is NFT music technology? Most of the NFT tokens are part of the Ethereum blockchain. You can store artifacts on any compatible wallet (MetaMask, Trust Wallet, Ledger).They support popular collectible standards and allow you to view and manage them in a convenient format. NFT tokens are located in the Wallet section on the Collectibles tab.
Is It Worth Investing in NFTs?
Buying a digital object is becoming a profitable business. There are several ways to make money on NFTs:
Acquire crypto-art items in order to sell them at a higher price in the future.
Invest in native coins of NFT projects.
To lend to crypto art collectors.
Buy tokenized index funds.
Invest in insurance policies on the blockchain.
Investing in the NFT music industry also comes with its own risks. Collectibles are low liquid, and their value is subjective. Therefore, the choice of object for investments requires careful analysis.
What Are Prospects for NFT in the Music Market
Showing support for “idols” is probably the main reason for fans to buy NFTs music. For artists, NFTs open up new forms of interaction with listeners. But so far, only a small part of fairly advanced performers who are able to deal with new technology have come to the NFT music industry space. The good news is that as musical tokens become popular, we will see more uses for them.
In general, most experts predict an increase in interest in non-fungible tokens. Technology opens up serious prospects for many sectors of the economy: real estate, media and others. The crypto art market is a sandbox where innovations for various fields are created and tested. Given the rapid growth of the metaverses and their need for collectible assets, virtual and augmented reality artifacts, it is reasonable to assume that the industry will develop and new players will enter it.
