The sale of crypto assets totaled US$24.9 billion in 2021, up from US$94.9 million in 2020, making it a watershed year for NFTs.
The growing desire for crypto art and collectibles is partly to blame for the spike in NFT sales. According to Fortunly, NFT art sales totaled more than 11 million dollars last year. Christie’s and Sotheby’s even held their own NFT art auctions in 2021. This credits with propelling contemporary art sales to new heights.
Music, on the other hand, is the most recent art form to be available as an NFT. The blockchain technology creates a record of ownership for NFT assets, which can be digital or real. Because NFTs can design so that royalties are paid directly to musicians, there is less reliance on intermediaries. It’s no surprise that NFTs will transform the music industry.
Many music artists only receive roughly 16 percent of their revenue. This is due to the involvement of third parties such as record labels, management agencies, and streaming platforms. When this combines with the enormous amounts of music piracy and copyright misuse that occur, musicians frequently find themselves in financial difficulty.
Using NFTs, on the other hand, allows musicians to continue composing and recording music. The blockchain serves as an immutable record of ownership. The artist regains control of tokenized music, and the transparent and automated royalty arrangements eliminate the possibility of fraud.
The elimination of middlemen provides financial benefits to lesser-known musicians. Platforms like Spotify, according to Business Insider, only pay royalties of $3,000 to $5,000 per million streams. Using NFTs also gives musicians access to different revenue streams. They have the opportunity to sell apparel, concert tickets, CDs, vinyl records, and other items directly to fans.
Royalty Earn and Trade
Artists may continue to release and share their music as usual thanks to the immutable record of ownership that comes with using NFTs. It comes with the promise that royalties would be paid to them directly. Concert tickets can also tokenize by embedding smart-contract enabled NFTs inside them. It reduces the danger of resale fraud and black-market ticket dumps.
Another advantage of tokenized music is that it allows listeners to invest in a portion of the song’s rights. Increased song replay allows listeners to share in some of the royalties. Music-focused NFT marketplaces, such as Opulous, are developed where fans and investors can exchange fractionalized ownership of individual songs.
As a result, the bonds between musicians and their audiences deepen. Listeners and fans can directly contribute to the advancement of their favorite artists’ careers.