By Martyna Borys-Liszka
Blockchain technology is on track to disrupt a handful of industries, especially those that rely on trust and digital ownership. Most recently, we’ve heard a lot of noise around non-fungible tokens (NFTs). According to the 2020 industry report, NFTs have grown to encompass a $250 million market.
Non-fungible tokens (NFTs) are unique, digital items with blockchain-managed ownership that can range from collectibles to game items, digital art, event tickets, domain names, and even ownership records for physical assets. To simplify, NFTs are a type of cryptocurrency, but instead of holding money, they hold the value of the unique assets. Given NFTs are built on top of blockchain technology, all tokens are easily verifiable and can always be traced back to the original creator. In terms of the tech, it works exactly like cryptocurrency Bitcoin or Ethereum. When a person makes a transaction, it creates a data block that logs the sender and recipients’ addresses and a timestamp without compromising his or hers identity. Those blocks form a digital chain that can’t be edited and nearly impossible to hack.
“Currency is just one tiny little aspect of [crypto]… It’s about changing how we interact in a business setting.” — Grammy-winning artist RAC.
Companies and individuals are getting excited about the prospect of generating digital revenue and monetizing their existing banks of content. Today, globally recognized brands like Nike, Louis Vuitton, as well as the NBA have already begun generating NFT-based consumer goods and services. But the list is long and growing. The music industry is a particularly interesting space as it illustrates very well the revolution that was long overdue –
“Music has become great at selling everything except music. There’s been a race to the bottom where, for as little money as possible, you have access to all of it. Previously, it cost $20 to go get one song.” — Josh Katz is the Founder and CEO of YellowHeart.
Same as with bitcoin, which hopes to revolutionize the monetary system, NFTs are set to disturb the music industry so that it supports real-time revenue streams and ultimately hand much more power to the individual artist.
Today, Kings of Leon will make history when they release their eighth studio album, When You See Yourself, in the form of a non-fungible token (NFT). Reporter of RollingStone Magazine, Samantha Hissong writes: “Kings of Leon’s album will be released everywhere albums are released — Spotify, iTunes, Apple Music, Amazon — but the NFT version available on YellowHeart will be the only product with special perks. The token, priced at $50, includes enhanced media — kind of like an alternate, moving album cover — as well as a digital download of the music, and limited-edition vinyl.” The sale starts today at 5pm (GMT) and will continue for two weeks. After that, no more will be made, making the ones in existence a collectible.
NTFs are a strong contender to steal the spotlight in the 2021 crypto world as many believe it could set a foundation for the way we transact digital items. The music industry is an excellent illustration of the fact that possibilities are endless. Watch this space, big brands, major investors, and VCs will no doubt want to get in on the action.
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