Discover NFTs in Music
First of all, the rapper Booba recently managed to sell 25,000 copies of the video “TN” in the form of non-fungible tokens (NFT). Yes, we can say it, the whole cultural sector has been turned upside down by the appearance of NFTs and it is not ready to stop. Indeed, NFTs are more and more used in the world since big names of the industry like Eminem or The Weeknd are turning to this novelty. If you discover NFTs, you probably wonder what they are for? Will the art world be transformed by this new revolution? How can it be used in music?
What is an NFT?
Can be translated as “non-fungible token”. In practice, an NFT allows you to obtain a certificate of authenticity which can take the form of a digital file. Therefore, each NFT is unique, it’s like a limited edition that you buy. Therefore, each file is unique and according to the fame of the product, it acquires a more or less great value.
Regarding the technology it uses, you must have also already heard about it at least once in your life. It is based on blockchain, the same technology used in crypto-currencies. Born in the 1990s, this technology is intended to guarantee the security of transactions. Therefore, what use in music?
How NFTs are used in music?
Artists don’t waste time and they are right. A lot of artists and structures have already used NFTs to promote their music. Wiseband has found you some examples:
- In November 2021, unique edition house and techno masterpieces are up for auction on Pianity.
- In February 2021, it is the member of the group Linkin Park “Mike Shinoda” who put on sale his project Zora in the form of auction available on a platform in the purchase of NFT.
- Famous Australian singer Sia is launching an NFT collection in December 2021 on Opensea in partnership with Sam Bankman-Fried’s FTX. Sia chose FTX because of its philosophy, but it remains independent of the platform.
The impact of NFTs on the music industry
All in all, as we have seen, NFTs can be used in many different ways by the music industry. Now, I know you have a question on your mind: How can you benefit from NFTs in the long run? But also, what is the best way to sell your music with NFTs?
With NFTs, a whole new system is created. Indeed, we totally reinvent the way to sell his creations in the digital world. In particular as in the standard streaming platforms like Deezer or physical media like CDs.
Have you dreamed of finally being able to collect the music of your favorite artist? The visuals of each album? Bingo! It’s now possible with NFTs, thanks to a totally innovative technology. In addition, virtual reality is the link with NFTs and allows you to live an immersive experience. For example, Nextech is planning to launch a program to create NFTs in augmented reality. Therefore, NFTs offer an infinite field of possibilities.
The NFT system operates like a traditional market. That is, like any good market, it is governed by supply and demand. A person buys an NFT because he believes in a music project. Maybe because he is a fan of a song or simply because he sees a real investment in this project. It makes sense that as you become more known, your NFTs will become more valuable.
From now on, the NFT wants to be the number 1 platform for all music creators. This is due to the fact that it allows you to receive royalties for each transaction.
For example, let’s imagine if you release your new song through a totally exclusive release on NFT. You choose to sell 100 available copies at only 1 euro each. Then 10 years later you become an international star and your song that you sold 100 copies of has become your most famous song.
The famous piece that you sold for 1 euro is now at more than 3,000 euros on Ebay. Therefore, you will get 10% commission on the Ebay sale. Isn’t that nice?
In the end, this is the big strength of NFTs. With goods such as vinyl or CDs, it is impossible to earn a commission over time. But with NFTs, you can add a program that allows you to make money on every sale. You still need to find the right NFT marketplace.
In each sector of culture, there is a dedicated platform. More commonly called, the “marketplaces” of NFT. Here, you will have understood, we are going to be interested in the music marketplaces. But then, what is an NFT marketplace?
An NFT marketplace specialized in music allows artists to transform their tracks into limited editions and to sell them directly to their fans. This platform is mainly aimed at music fans and you don’t need to know anything about crypto-currency to use the platform.
The NFTs available on the market can be purchased by credit card. You don’t even need to create a crypto wallet to use the NFT markets.
NFT platforms dedicated to music are created every day in the world, we find for example Pianity. Its particularity is that the NFTs they offer for sale do not give any rights on the purchased track. The reason is simple: to favor the artists as much as possible, and to make sure that they are better paid without giving anything more in return.
The objective of the marketplace is to allow everyone to listen to music without ads for free. However, it also allows to offer a source of income to the artists thanks to the sales of NFT in addition to the digital distribution proposed by Wiseband.