To put it simply, NFT stands for Non - fungible token. It is a collectible item represented by a digital asset on the block chain. There is a variety of different kinds of NFTs - from physical and digital art to music and video game collectibles and even rare social media posts. They represent anything unique that could be stored digitally and holds its own value.
An NFT is worth whatever the buyer is willing to pay for it. They are often auctioned and sold to the highest bidder. One of the most expensive NFT's is a collage of digital art that was sold for 69.3 million.
What is an NFT in the Music Industry?
Since most NFTs are Ethereum-based tokens, most marketplaces for these collectibles accept only Eth tokens as payment.
NFT is revolutionizing the music industry. Artists and singers can construct their own NFTs to auction off various types of digital media to followers who pay using cryptocurrencies such as Bitcoin, Ethereum, and others. They could either add several buyers to the NFT or limit it to one owner. The artist may also be paid royalties if a buyer of a digital copy sells it to another person. This gives artists more leverage, as they now have another opportunity to sell their work or other forms of digital merchandise.
Music Industry has always struggled to achieve the right balance in terms of compensating the artists fairly for their work.
NFTs are the ideal solution to this issue. NFTs give irrefutable proof of ownership and are maintained in a distributed ledger, similar to cryptocurrency tokens, making them extremely difficult to tamper with. Artists can thus claim entire ownership of their music through NFTs, avoiding the need to share earnings with middlemen such as music labels, lawyers, or agencies.
Musicians in the NFT Space
King Leon's latest album, "When You See Yourself," is one of the first major albums to be issued as a collection of digital NFTs - a type of cryptocurrency asset – with each token featuring original album artwork and a limited edition 'Golden Eye' vinyl.
Once Upon a Time in Shaolin is the most expensive music NFT ever sold.
A group of NFT collectors has paid US$4 million to purchase the only copy of a one-of-a-kind album by the rap group Wu-Tang Clan.
A group of NFT collectors has paid $4 million to purchase the only copy of a one-of-a-kind album, "Once Upon a Time In Shaolin" by the rap group Wu-Tang Clan.
Kaber Vasuki, an independent Tamil singer, sold a phone demo of his song "Vasanam" as a non-fungible token (NFT) for 50 ETH, which was worth almost Rs 1.5 crore at the time of sale. In the midst of increased demand in digital works, this is the largest documented sale of an NFT by an Indian artist.
NFT is empowering creators who usually have had to struggle to make a living. Step by step, it is changing the music industry in favor of the artists. The possibilities for Music NFT's are limitless.