As the world advances, it becomes more and more critical to protect your assets and innovations. Businesses have discovered that using blockchain technology offers one of the best ways. However, many companies are still hesitant about implementing blockchain into their business practices because they’re uncertain about how it all works. This article will provide an overview of the basics of non-fungible tokens (NFTs) and how they can be used in the music industry.
Types of Music Rights covered by NFTs
There are many types of music rights, which come with different legalities. The most common music rights that artists and producers need to consider are mechanical, synchronization, and public performance rights. The digital tokens enable them to make money from their content in ways that wouldn’t have been possible in a traditional music industry landscape. NFTs allow these rights holders to be part of an open-source ecosystem while being fairly compensated by users who utilize their work under the types of music rights listed via Ethereum networks.
Song-NFTs on DeFi Music Platforms
Song-NFTs have been termed revolutionary and featured on DeFi platforms such as Verzt and Digimarc. The Song-NFTs are tokens that have access to a collection of musical compositions. They are the principal source of royalty income for any artists that have signed up for the site.
You can think of them as rare collectibles or unique edition goods. One issue that has plagued musicians, artists, and record labels for years is revenue-sharing from digital music sales. These Song-NFTs take advantage of NFTs’ non-fungibility to link the ownership of the backed music piece to the platform. As a result, the artist can collect earnings via the platform.
Current Artists Adopting NFTs
Music NFTs generated over $80 million in sales in the previous year, igniting an unprecedented wave of growth and experimentation in the music industry around blockchain technology. Therefore, it is not a surprise to see artists adopting blockchain as a revenue stream.
Nas recently revealed his next cryptocurrency venture, a collaboration with Royal, a blockchain-powered platform that will allow his fans to own part of his music. The legendary hip-hop star will transform the streaming royalty rights to his tracks, “Ultra Black” and “Rare,” into digital tokens that fans can purchase on the platform.
Benefits of the wide adoption of NFTs in music
NFTs offer a new revenue stream for musicians and music producers, which would allow them to sustain their music careers. In addition, NFTs ensure artists get paid somewhat by giving them more control over their work without having to rely on record labels or other intermediaries who may or may not pay them on time. NFTs can also help limit fake plays of songs that were listened to in large numbers since pirated content is easily traced using blockchain technology. Partnerships with royalty owners from all around the world are available through Decentralized Finance platforms. Music ownership can be traced back to its author by issuing NFTs to musicians. It ensures that the NFT creators or owners receive royalties from new songs and albums.
These are fascinating times, especially in the Music Industry. NFTs promise improvements that could ultimately lead to higher revenues for both songwriters and consumers.