This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.

| less than a minute read

NFTs - Life preserver for the music industry?

Non-fungible tokens (NFTs) are unique digital assets that are collectable. They are akin to digital, one-of-a-kind baseball cards--and they are taking the online market by storm. 

Digital items can be repeatedly duplicated which makes the concept confusing to some. The NFT token can be thought of as proof of ownership for the "original" or "one-of-a-kind" virtual property. This ownership record is stored in a shared ledger more commonly known as blockchain. 

In the music industry, which has been struck hard by the pandemic and online streaming services, artists can cash in on their "cultural capital" putting up their work as NFTs for auction. As discussed in the following article, some musicians have even used NFTs to fund charitable ventures during the pandemic. 

Much like the crypto-currency often used to bid on them, NFTs are not an easy concept for everyone to understand but this token appears to be showing some staying-power.

The token acts as a digital certificate of ownership for whatever the creator, in this case a musician, decides to put up for sale. This can be anything from a single traditional album, to a bundle including extras such as gig tickets and exclusive bonus tracks. ... Prior to the pandemic, artists had increasingly relied on touring to break even. But with live music continuing to face an uncertain future, the potential of NFTs to supplement income holds huge appeal. This is especially true because it offers artists the chance to bypass the swathe of label, distributor and publisher rights.

Tags

nft, cryptocurrency, music industry