Did you know that Jack Dorsey, the creator of Twitter, sold the world's first tweet for $2.9 million? This bit of news is what introduced most people to the world of NFTs (Non-Fungible Tokens). Currently, NFTs are being bought and sold like priceless pieces of art. But what exactly is it? And how can you benefit from it as a music rights holder?
NFT, short for Non-Fungible Token, is a method to digitally sign original media (like music, art, poems, videos). Virtually, anything and everything you want to sell and people want to buy can be turned into an NFT. some compare it to selling limited autographed copies of their work - but then digitally. Although that's a nice metaphor, it does not make clear where the real power of NFTs lay.
It's a contract
Generally, a Non-Fungible Token acts as a non-duplicable digital certificate of ownership for the assigned digital asset. It's basically a contract that has the form of a piece of programmable code.
It automates things
The fact that NFTs are digital pieces of code that can be programmed to do all kinds of things, makes them much more than just deeds of ownership. The most important feature baked into the nature of NFTs is that they can be programmed to send a piece of the revenue of every (re)sale to the original creator of the item.
Now THAT is a revolutionary step forward for artists. No longer do artists need to sign agreements and pay people to calculate and collect royalties. They can now rely on the code of the NFT, that will unfailingly execute every time a new transaction takes place. Their share of the transaction will immediately show up in their crypto wallet.
It's secure
The beauty of the underlaying blockchain technology makes it secure. Once a token (NFT) is stored on the blockchain, everyone can see it and no-one can change it. The fact that it's fully transparent and immutable, makes it secure by design.
It's revolutionary
NFTs are a very promising blockchain innovation. An innovation that may have seen a slow evolution for the first few years, but since the beginning of 2021 it has dominated day-to-day conversations on every level. From niche tech circles to clubhouse rooms, social media and mainstream media. Rightly so, because we at PlayTreks believe that NFTs are the much needed new fundament to build a new music industry.