Music NFT is a type of NFT for musical works. Music producers, singers, musicians, and other artists can use blockchain technology to create a unique version of a song, album, or any other digital music product. Let’s find out more with CoinMinutes through the article below.
What Is Music NFT?
Music NFT is a type of NFT for musical works. Music NFT is a very useful tool for artists and music producers to protect their intellectual property rights and the value of their work. Music producers, singers, musicians, and other artists can use blockchain technology to create a unique version of a song, album, or any other digital music product. Each music NFT has a unique code, which helps identify the uniqueness of the work.
Why Is Music Encoded into NFTs and Not Tokens?
Music is often encoded into NFTs rather than tokens because of the unique nature of the songs. An NFT is always unique and cannot be replaced by any other version, whereas tokens have divisible and fungible value.
Therefore, using NFTs for musical works allows artists and producers to control their ownership and increase the value of their products. NFTs also allow buyers to own unique musical works, creating a sense of exclusivity for users.
For example: One ETH can be divided into many ETHs of smaller value, but their nature is still ETH and can be replaced with each other. However, once a musical work is encoded into an NFT, it cannot be replaced with other musical works, nor can it be divided into parts because their nature is different.
How Do Music NFTs Work?
The operating principle of music NFT is the same as when we produce a traditional music song and sell it. The musician or band will be the one to decide what musical content they want to provide to their fans. This could be merchandise, concert tickets, audio files, etc. They will then choose the blockchain to mint these music NFTs. And next is choosing the NFT platform to use. Once they have determined their preferred platform, they will notify fans about the NFT launch. They will then set a price for each NFT product in their collection.
Music NFTs in particular and all other NFTs cannot be copied. Every fan who purchases a music NFT becomes the owner of their favorite musician’s work. NFTs can be stored in cryptocurrency wallets and sold to higher bidders if desired.
How Will Music NFTs Impact the Music Industry?
Prevent copyright infringement
NFT technology ensures authenticity, making it harder for artists to copy each other’s work and avoiding costly legal battles. People also cannot “steal” music through traditional methods such as copyright infringement.
New revenue stream for artists
Currently, it is difficult for artists to achieve significant profits on music streaming platforms. According to estimates, one stream on Spotify is worth about $0.004 USD paid to the artist, meaning 1 million streams only bring in $4000 USD in revenue. This provides a truly negligible revenue stream for artists, but for Music NFTs, it’s a different matter.
Artists can release their musical work as an NFT collection for let’s say just a few dozen dollars. However, if the number of listens is high, it means the amount of copyright fees collected will be very large. This will create a large passive revenue stream for artists.
Directly connect artists and their fan
Different from the traditional market where there is a very long distance between artists and fans. With Music NFT allows artists to directly reach fans and build a community of their own. This decentralized approach also allows fans to invest and participate in supporting the artists they admire. As a result, Music NFTs are gradually changing the way artists and fans interact and collaborate with each other leading to a more sustainable and meaningful relationship reinforced by benefits for both parties.
Pros And Cons of Music NFT
- NFT music can be profitable at any stage of an artist’s career: One huge benefit of music NFTs is that they effectively cut out the middlemen, allowing artists to receive support directly from their fans.
- NFT music is an investment for artists and fans: NFTs provide a direct support model for artists, while also serving as an investment for fans. Fans can enjoy the NFT section for themselves, but can also resell the NFTs as artists progress in their careers.
- NFT music is the future of funding: Imagine artists creating demo tracks and using that NFT to fund the creation of the entire project. NFTs make it possible for artists to fund their own works, as long as they have a loyal fan base.
- NFTs serve as a niche form of marketing: NFTs don’t just hold monetary value – they also hold social value. NFTs open up a new way for people to discover music in niche spaces and can help artists earn dedicated fans faster.
- Not all NFTs are climate-conscious: Perhaps the biggest drawback of NFTs is that some are detrimental to the environment.
- NFTs are not community builders alone: NFTs require strong communities to hold value, but they don’t build tight groups on their own. Artists need to have a certain audience to be able to make money from NFTs.
- NFT music is not for everyone: But for the right artists, these assets have the potential to create a sustainable full-time career for any musician willing to build a community.
What Are The Most Popular Types of Music NFTs?
The 1/1 NFT is issued as a unique item. NFT 1/1 music products bear similarities to famous works of art because there is only one original.
The origin of this feature comes from the supply to create 1/1 NFT music that is scarce and difficult to find on the market. However, there are also people who believe that the release of 1/1 NFT music is like a PR strategy to promote the word “exclusivity”, promoting the feeling of FOMO (Fear of missing out), thereby pushing up the selling price.
Limited edition NFT means that each musical work will have a limited number of digitized versions predetermined by the musician/artist, usually 100, 1000, or even 10,000 versions.
Once the number of versions is decided, the musician will create NFTs for each version using a blockchain platform. Each version will have a unique code and information related to the musical work.
Musicians may decide to distribute limited NFTs through NFT marketplaces or some similar platform. Those who purchase this NFT will own an exclusive digital version of that music product.
Open edition is a form of selling NFT music based on a fixed price for a specific period of time. For the Open edition, the NFT collector community can mint an unlimited number of editions. After the time limit expires, players cannot mint new NFTs.
Open Edition NFT was born to serve the need to enjoy genuine music by minting NFTs in large quantities to support artists, instead of just chasing “rarity” and increasing profits for speculators.
Unlike Limited edition, Open edition NFT allows players to freely mint new NFTs in unlimited quantities, however, this form is limited in time.
How to create and sell music NFTs
You can create an NFT by using user-friendly platforms like OpenSea, Rarible, or Foundation. These platforms provide step-by-step instructions to guide users through the process of minting and listing their NFTs for sale.
What gas fees will I pay when buying a music NFT?
Gas NFT is a fee paid to validators to keep the blockchain secure. Without it, there would be little incentive for validators to stake their ETH and keep the network secure. All blockchain transactions are subject to gas fees including minting, buying, selling, and transferring NFTs and cryptocurrencies.
Music NFT is a new and potential field in the music industry, bringing many benefits to artists and music lovers. However, using NFTs also poses many challenges, especially in determining the value of NFTs and difficulty accessing the market. With the development of blockchain technology, Music NFT becomes a new and promising field in the future.