Understanding music NFTs

Malu
Malu
  • Updated

What makes an NFT valuable?

Traditional works of art are valuable because they are one of a kind.

But digital files can be easily and endlessly duplicated. With NFTs, artwork can be "tokenised" to create a digital certificate of ownership that can be bought and sold. An NFT is, in essence, a collectible digital asset.

The digital tokens can be thought of as certificates of ownership for virtual or physical assets. Essentially, NFTs create scarcity.

What's the revolution for the music industry?

Scarcity

With the rise of streaming platforms, music has become mainstream and abundant. There are lots of benefits, of course, since everyone can now listen to all the music they want for a few bucks. But it has also made it nearly impossible for music fans to truly express their musical identity, or support their favorite artists - until NFTs. NFTs allow for digital music to have authentified scarcity and ownership that cannot be counterfeit.

Direct sales

NFTs allow musical artists a unique opportunity to monetize their production in a fair and transparent way. Artists can now deeply connect with their fans and get revenues directly from their NFT sales.

Secondary market

We think the ability to secure a percentage of secondary-market revenue for artists is one of the most revolutionary and exciting capabilities provided by Pianity. It's analogous to a musician receiving a percentage of sales for a vinyl record issued, say, in the 1960s and still being bought and sold in used record stores today.

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