Musicians depend on record labels on how to distribute their music to as many people as possible. However, the latter has the majority of the control in their arrangement to the point that artists often lose their style to pop culture. Non-fungible tokens (NFT) change the framework of ownership and accessibility to music in a way that puts the control back to the musicians.
What is NFT and how does it work
An NFT is a virtual asset running on a blockchain network and can be stored in a digital wallet like cryptocurrencies. The difference is that these are items, not money, with every piece being completely unique to each other. While cryptocurrencies are generated through mining, NFTs are minted into the blockchain so anything can be turned into one by users.
Crypto’s popularity in South Africa and the rise of Bitcoin casinos paved the way to give its citizens enough knowledge to prepare for NFT. Thus, a few local musicians have already embraced the technology and begun contributing to its growing ecosystem.
Changes that NFT makes in the music industry
When music is minted into an NFT, it becomes accessible to everyone on the internet for free. People can listen to it directly on applications running on the Ethereum network or through distribution media like the radio or streaming services for free. The artist has full control over how it reaches its target audience using the power of interconnectivity in the modern age.
Why buy NFT music if you can listen to it for free? The reason is what you gained from owning it. NFT is an asset similar to stocks that give you the right to be officially identified as its owner. If you own one, get to earn part of the revenue that it generates through other distribution means. Imagine that you not only own the song of your favourite artist but also earn passive income from it.
The artist that created the NFT is still in control of how it’s distributed publicly but you, as co-owner, can use it however you wish. Traditionally, companies have to pay royalties to the record label if they wish to use a song/track in a public event or use it in a competition. NFT owners, on the other hand, are free to decide when and how to use it without asking permission from the artist.
How buying and selling NFT music is done
NFT trading is flexible thanks to its user-friendly system. Popular means include buying directly from the blockchain partner collaborating with your favourite artist. Transactions over online exchanges are more popular because it’s easier to track trades in more populated spaces.
The most popular website right now is OpenSea where you can find all sorts of NFTs such as images, animated clips, video game assets, and music. All you need is a wallet that can store ERC-20 tokens like Coinbase Wallet and MetaMask. If you wish to sell the NFT that you own, you may seek a buyer through an exchange or social media but it’s more profitable to auction it back on OpenSea.
The future of the music industry is bright for all artists
The high level of blockchain literacy in South Africa and the rise of Bitcoin casinos are the foundation of what ensures this new revolution’s success. Musicians are no longer trapped to please a third-party distributor, giving them more leeway in terms of experimentation and authenticity to the craft. Fans, on the other hand, are given a more direct means to support their favourite artists while also benefiting from the arrangement.