NFTs, otherwise known as non-fungible tokens, meaning it is unique or cannot be replaced. NTFS are cryptographic assets that are stored in blockchain, but unlike a cryptocurrency like Bitcoin, you cannot trade one NFT for another as each is unique.
Understanding NFTs in The Music Industry
Now that you understand a little bit more about what NFTs are it is time to outline the connection between non-fungible tokens and the music industry. While the concept of NFTs is relatively new, they only started to become part of the public consciousness in 2017, and they have already had a big impact on the music industry.
The impact of NFTs and cryptocurrencies are having on the wider world is still someone limited as they have not yet reached the mainstream. While the finance world and some industries like insurance, retail, and oline casinos like Thunderpick - the best online bitcoin casino have embraced the possibilities of cryptocurrencies, it is still not ubiquitous. However, many musical artists were leading the way when it came to cryptocurrencies, and the same can be said for NFTs.
The first artists to realize the potential value of NFTs can be found in the EDM genre. Over time many artists have realized the power of NFTs by releasing their own. The list of popular musical artists that have released their own NFTs includes Snoop Dogg, The Weekend, Shawn Mendes and Grimes.
How are NFTs Changing The Music Industry?
Traditionally musical artists were reliant on their labels in order to produce and launch music and to connect with their fans. This is because artists were unlikely to have the funds they needed in order to create, record and market an album themselves. The decentralized nature of blockchains and the design of NFTs make it possible for musical artists to connect to their fans directly. This means that musical artists are able to connect with their fans and make money without the need for a third party like a manager or record label.
The connection between the music industry and NFTs is only set to increase in the coming years. One way in which you can see in the boom beginning in music NFTs is a recent increase in music NFT marketplaces. Alongside the larger NFT music marketplaces like Royal and Audis, you cannot find newcomers like Sound.XYZ.
The rise in music NFTs has not only come from a response to the music industry model but also the streaming system. As the majority of people are now streaming music rather than buying records or CDs this can create issues when it comes to funding for artists. NFTs cut out all possible intermediaries, which means that artists no longer rely on music labels to create music. They are able to sell directly from their fans and continue making money from NFT resales.
Some musical artists are also seeing NFTs as an opportunity to connect more deeply with their fans by allowing them to co-own songs. This means that not only will NFTs enable artists to take more control over their careers and own their work, they will also help fans and musical artists have stronger bonds with each other.