Posted on February 17, 2023 | By Yvonne Martin

Do You Need Smart Contracts While Creating Music NFTs?

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Music NFTs

Music NFTs are taking the world by storm. Using Smart-Contracts and unique fan engagement techniques, an artist can now create a whole new type of community that will follow them beyond views, likes, and shares.

More than just a JPEG, NFTs allow an artist to embed perks, privileges, and even financial incentives that reward buyers. All while giving members access to what they came for first MUSIC

What Is A Music NFT?

NFTs are a type of digital asset that represent real-world objects like art, music, in-game items, videos, and anything else that can represent a unique entity. More than just an image, an NFT represents the transaction in the blockchain that is illustrated by an image. They are bought and sold on online marketplaces or p2p portals that curate the buyers themselves.

Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. The market for NFTs was worth a staggering $41 billion in 2021 alone, an amount that is approaching the total value of the entire global fine art market.

You can view the individual images, or even the entire collage of images online for free, But  NFT allows the buyer to own the original item. With the hash being a built-in authenticator, collectors no longer need to pass by an appraiser to validate the product, rather this validation is secured by a public blockchain and is accessible to all.

For music, this creates a unique market type, where the artist can generate the hash, input their IP rights, and mass market their product in a fan 2 fan ecosystem. Supporters of the music or financial speculators can in turn buy these assets and market them on their own platforms without passing by a publisher or streaming platform; bottle-necked by the algorithm. 

What Is A Smart Contract And How Does It Work?

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein are enforced by the blockchain network.

In the case of an NFT, the smart contract can contain information about the NFT itself, such as a description, the name of the artist or creator, and any other relevant details. It can also contain rules around how the NFT can be bought, sold, and traded, including any fees or commissions that may be involved.

When someone wants to buy an NFT, they can use a cryptocurrency, such as Ether, to send a transaction to the smart contract. The smart contract will then verify that the transaction is valid, and if it is, it will execute the terms of the contract, transferring ownership of the NFT to the buyer and updating the blockchain to reflect the change in ownership.

In this way, smart contracts can be used to automate the process of buying and selling NFTs, making it easy for people to trade unique digital assets in a secure and transparent way.

NFTs have the potential to revolutionize the way that the music industry operates by providing a new way for artists to sell and monetize their work. Here are a few ways that NFTs could be used in the music industry:

  1. Selling music as NFTs: Artists could create NFTs that represent ownership of a particular song or album. This would allow them to sell their music directly to fans, bypassing traditional distribution channels and potentially earning more money in the process.
  2. Selling exclusive experiences: Artists could use NFTs to sell exclusive experiences, such as backstage passes, meet-and-greets, or private concerts. These NFTs could be bought and sold like other digital assets and could provide a new source of revenue for artists.
  3. Selling collectibles: NFTs could be used to sell unique and collectible items related to an artist, such as signed posters, limited edition vinyl records, or other memorabilia.
  4. Selling digital art and merch: In addition to selling music, artists could use NFTs to sell digital artwork and other digital merch. This could include things like digital posters, wallpapers, or even virtual clothing for avatars.

Overall, NFTs have the potential to provide a new way for artists to monetize their work and engage with their fans, and could potentially lead to a more decentralized and fairer music industry.

Free market capitalism in the music industry has a new name, and it’s Non-fungible tokens!

Key Takeaways

  • Each artist is different. Each fan base has its own characteristics.
  • We go beyond the generic minting cycle and wide-reach airdrops.
  • Develop loyal communities, with targeted PR and media outreach.
  • Financially sound products, with a rug pull-proof strategy.
  • Properly audited contracts, to bridge the gap between music and tech.

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