NFTs in the Music Industry
NFTs are the newest find of technology to trade collectibles. It is one digital asset that represents real-world objects like music, art, game items, videos, etc. NFTs ensure ownership of work in the digital world without the slightest breach of originality. It is a boon for the artist community; the trading of the digital versions of their art, music, or video happen independently just by signing up with a marketplace and finally uploading them on the blockchain. Both artists and musicians can create NFTs all by themselves to auction off various forms of digital media by getting paid with cryptocurrencies. For example, the Canadian musician Grimes was able to earn a whooping $5.8 million within the time span of 20 minutes only. Apart from these, there is a royalty point too when the person buying the digital copy sells it to someone else and it happens via smart contract. The creator receives around 3 % to 10 % profit every time upon re-selling. NFT is basically an artists’ paradise where it provides a platform to get their creativity appreciated without any dependency on third parties. However, to build NFT, you can always approach Non Fungible Token Development Services who can help to add immediate liquidity and value to your unique assets.
As Monkhub is the top-notch NFT exchange platform development service provider, our experienced NFT token developers gathered some required information regarding the NFTs in the music industry. Keep on your reading to learn.
Reasons behind Musicians’ inclination towards NFT
NFT provides sources to independent artists to connect directly with fans in creative ways. For example, if a fan thinks that the digital ownership of the music is worth thousands of dollars, then the earning is sure to change the artist’s situation instead of relying just on social media views and engagement. The concept of world tours by musicians has already become a term of the bygone era and thanks to the pandemic for that. Not only that, live performances too are facing the threat of extinction and given the scenario NFT stands as the sole relief for musicians across the globe. The online marketplace named ‘Royalty Exchange’ took the maiden step to sell publishing rights to a song named “Save Dat Money†in the form of NFT. The value of NFT works like an auction; the better the demand, the higher the value. However, it doesn’t imply that only big stars with big fan bases can profit from NFT; NFT marketplaces are filled with freshers as well who are doing well in the market owing to their loyal fan base. Artists often look at the creation as one form of equity investment where they can easily distribute a certain share of ownership of their songs via NFT. The popular names of the music industry associated with NFT are Mike Shinoda, Grimes, RAC, Kings of Leon, etc.
Is NFT for all?
The success of NFT in the music world is undoubtedly praise-worthy but it is not without criticism. It appears that there is a conflict rising and there is a clear division among the rich ones and average ones. Not all fan following comes from the millionaire club. According to Jimi Frew, co-founder of Blockchain Music, “90 percent of them are very wealthy crypto holders. That leaves out the fans that can’t afford these high-ticket items.†Adding more to this ongoing criticism, authors Kean Burch and Fabien Muneisa have discovered a new term called ‘assetisation’ referring to the current situation which they believe is driving the trend more towards financial ownership rather than artistic value. Moreover, it is a very time-consuming effort to transform the money into cryptocurrency and log into crypto wallets thereafter. The gas fee charged is also very high, making the entire concept impractical to many. Leaving aside the purchasing concerns, if we shift the focus to the security concerns then, NFT leaves behind a weak spot in terms of safety and sustainability of assets. For example, if the server host faces any glitch and goes down, then NFT is lost forever. Now coming to those musicians or music lovers who are environment conscious, they would hardly love the idea of environment affecting elements associated with NFT.
Future of NFT in Music
It is too early to analyze the growth or success of NFT while it’s still in the blooming phase. The future of NFT exchange platform development service providers rests on the scale of adaptability or improvement in terms of technology. NFT should mould its utility to suit both the creator and the admirer. The royalty is one great aspect of NFT that should be taken care of so that the payment stays quick and fair. It is important to gather trust because a certain section of the population still believes in the fact that value is greater in physical objects than digital ones.
Understanding NFT can be complex initially but as the world grows more digital, artists are in search of new methods of connectivity with the global audience. The potential of NFT rises further eradicating the conventional layers of intermediaries making middlemen redundant. NFTs are here to stay and therefore it would be unwise to dismiss NFT as a mere passing fashion.
