The term music non-fungible tokens or NFTs (music NFTs) is a new kid on the block in the music industry. It is one that music creators are learning about increasingly.
You might even want to become involved in this unique concept.
This article will explore the following as they relate to music NFTs:
- Non-fungible token explanation.
- Advantages of music NFTs.
- International music NFT sales.
Music non-fungible tokens or music NFTs defined
The term NFT is an acronym for non-fungible token. A non-fungible token is digital and is stored on a blockchain.
DeBest, (2022) explains that non-fungible tokens, or NFTs are:
Non-transferable digital assets.
Stored on a blockchain.
Whenever a digital asset is added to the blockchain, a unique identifier is assigned. No other digital asset has that identifier, usually a number or a certificate of authenticity.
When a unique identifier is assigned, owners of digital assets on the blockchain can prove ownership of their asset.
They can also assign shares and sell portions of or all of their assets to others.
What is a blockchain?
A blockchain is a storage database that is shared among the nodes of a computer network. Blockchains store information in digital format.
Blockchains store data in blocks. Each block in the chain is given an exact time stamp when it is added to the chain.
Each block is linked together via cryptography.
Once a block is filled with data, it is chained onto the previous block. In that way, the data in each block is chained in chronological order.
Blockchains therefore provide a timeline related to the storage of data. When a block is filled, nothing else is added. The block is unchangeable and the block becomes a part of the time line.
Blockchains therefore allow digital information to be recorded and distributed, but not edited.
Therefore, blockchains provide a foundation for immutable ledgers, or records of transactions that cannot be altered. (Investopedia, 2022).
Relevance of blockchains to the music industry
I’m sure you’re beginning to say “aha.” Music creators have been plagued with theft of their works and therefore loss of revenue.
The blockchain is the perfect way to establish ownership with a timestamp. It also provides a protective system against the altering of one’s work.
There are other advantages of the block chain related to the sales non-fungible music tokens.
Let’s read on to discover more.
The Creator was the first architect of non-fungible tokens.
Our Creator provided each human with unique identifiers such as DNA, irises and fingerprints.
If we think about it, nations use non-fungible tokens in the forms of national identification numbers, passport numbers, drivers license numbers etecetra.
Digital copyrighting systems also assign time stamps and unique numbers to copyright owners.
Non-fungible tokens in industries unrelated to music
In other industries, examples of non-fungible tokens include:
- Digital files, including GIF, JPEG, or MP3 formats
Examples of non-fungible tokens in the music industry
In the music industry, non – fungible tokens include items in a digital form such as:
Fungible items are non-transferable
In contrary, a fungible item is unique and cannot be owned by more than one person at a time. Examples include clothing and furniture.
Advantages of music non-fungible tokens or NFTs for music creators
Here are some of the main advantages of music music non-fungible tokens or NFTs for music creators:
Copyrighting of music
- Once the music or digital asset is uploaded to the blockchain, the music creator obtains a digital certificate of ownership.
- Works cannot be stolen because they have a unique identifier on the blockchain.
Creators gain greater control over their musical compositions
- Music creators can sell music directly to fans without the need for third parties.
- Music creators can sell portions of their copyrights to fans who will automatically earn royalties on their copyright share.
International music NFT sales 2020-2021
Sales of their NFTs bumped up to tens of millions of U.S. dollars in early 2021. in NFTs.
An outstanding example is that of the music album, Kings of Leon. This album was released on the blockchain in March 2021 and has amassed around two million U.S. dollars worth of sales.