The most important thing to understand as an artist or label owner, is how the blockchain, and NFTs, solve a problem that has been around in the music industry for decades.
Simply put, blockchain is a technology designed to prevent tampering, which makes it the fundament to a new era of transparent, traceable accounting. This eliminates transparency and reliability problems that have been around in the music industry for decades. In addition, blockchain enables the use of cryptocurrencies. This allows anyone in the world to pay for music and support artists they love.
Receive royalties from NFTs
By nature, the owner of an NFT has the right to resell, distribute or license the digital asset as they please. This means NFTs can be traded. The beauty is in the fact that you, as the original rights holder will receive a royalty, every time the NFT changes owner. When you create and sell your NFT on the PlayTreks Marketplace, this royalty is currently a fixed rate of 5% of the selling price. Every time it gets resold.
Just for fun, let's compare this to the old days of CDs and vinyl again. Imagine receiving money every time a music collector buyed a second-hand vinyl or CD with your music on it! Unfortunately, this is not possible with physical products. But NFTs make this a reality for digital products, including your music.
In short, blockchain and NFTs provide certainty that right holders receive a fair reward, and keep receiving a fair reward for as long as their work is being sold and resold.
Much more you can do with NFTs
The example above is basically a new way of selling a license to your music. But there's much more you can do with NFTs. You cannot only license your music, you can also create unique music or art collectibles through NFT releases, you can raise money through a token launch (with the option to have fans and early believers share in future revenues) and you can sell access to experiences (in which case NFTs act as a certificate of access). And that is just the beginning.