In 2021, the music industry finally started taking NFTs seriously. A handful of artists have launched NFT projects that attracted a lot of attention from fans and raised millions of dollars. The NFT and crypto scene is still very young, especially in the music industry. But the technology offers more direct interaction between artists and fans, and new ways to monetize artworks without music publishers, which makes it a promising technology for the music industry.
What are music NFTs?
A music NFT is a certificate of ownership for a unique audio or piece of music that can be bought or sold. NFTs provide indisputable proof of ownership via blockchain technology and come with a certificate of authenticity that can be validated at any time. Like crypto tokens, NFTs are stored on a blockchain and are therefore difficult to counterfeit. Through NFTs, artists can claim full ownership of their music without having to share their profits with middlemen like music labels or lawyers.
These music NFTs can be of different types:
- Songs and albums: musician 3LAU earned $3.6 million from the world’s first tokenized music album
- Music NFT Videos
- Album Cover
- Concert tickets can be tokenized as NFT to proof ownership
- Tokenization of recorded performances
NFTs impact the future of the music industry.
Given the way NFTs are transforming various industries, we could see an era in which artists reclaim full ownership of their works by forgoing middlemen like music labels and streaming platforms to release their music independently.