WHAT ARE NFTs AND HOW ARE THEY BEING USED?
Non-fungible tokens (NFTs) are digital content represented by tokens. They are driving a new wave of crypto adoption. NFTs didn’t come about yesterday; they made headlines in 2017 when Dapper Labs’ game CryptoKitties accounted for 95% of Ethereum network usage at its peak. It seems pretty crazy for someone to pay $170,000 for a digital cat, but that’s nothing compared to what creatives see on the app today.
What is an NFT?
An NFT is created by uploading a file such as digital artwork or song to an auction market. It creates a copy of the file recorded on the digital ledger as an NFT, which can then be bought with cryptocurrency and resold. The buyer of the NFT does not gain exclusive access to the work or possession of the “original” digital file. A record of each NFT transaction is kept on a blockchain, to serve as a certification of authenticity that cannot be tampered with.
How are NFTs used?
Additionally, The digital space could be a game-changer for the music industry. Last month, music NFT sales topped $25 million. Artists are developing new unique ways to showcase their work and interact with their fans on Ethereum blockchain platforms like Nifty Gateway, SuperRare, Foundation, and Zora. Multi-platinum recording artist Tory Lanez recently dropped three songs as NFTs pairing digital art with music that included a virtual meet and greet with the superstar himself. The collection’s tokens sold out within two minutes earning $500,000, including resales, in the first 24 hours. In the NFT space, an artist can still retain the copyright to work and create more NFTs.
🌟 @theweeknd is sharing his first-ever NFT collection this Saturday, featuring an unreleased song and limited edition art.
Details: https://t.co/TSOsm4AxZ4 pic.twitter.com/aeeaOzgJDI
— Complex Music (@ComplexMusic) March 31, 2021
However, there’s room for every type of creative on the app. Gaming companies, Graphic designers, and artists, have found unique ways to showcase their work in the digital world. The total value of crypto art surpassed approximately $100 million according to cryptoart.io/data. Bloomberg reported that artist Beeple sold his digital artwork as an NFT for a total price of $69.3 million.
Thus, NFTs are quickly emerging as the leading players for creatives to monetize work in a digital world. The Weeknd and Kings of Leon are amongst the big shot musicians utilizing the emerging space. It’ll be an exciting investment ride for NFTs if they continue to fulfill its promise to be a revenue generator for creators.
