A growing number of musicians have turned to blockchain technology, specifically NFTs, as a way to tokenize and preserve everything from digital music to album art and memorabilia.
With NFTs, artists can tokenize their songs and albums, and provide royalties to creators and producers. In addition, they can sell their digital merchandise for an additional source of revenue, if they wish.
NFTs are being used by the likes of John Legend, Grimes and Kings of Leon.
In fact, the members of Kings of Leon were so excited about the technology that they created an NFT with a never-before-released rendition of their song "Time in Disguise," then put it on a spaceship and played it in space; making it the first interstellar NFT tune to be minted.
Beyond their genius, NFTs are attractive to the music industry for financial reasons.
For decades, artists have felt cheated by unbalanced royalty deals or lack of money-making potential on streaming platforms.
But NFTs offer a good solution by cutting out the middlemen, allowing artists to take home a bigger piece of the pie.
Josh Katz, the CEO and founder of NFT marketplace YellowHeart, calls this the "90/10 rule."
"Traditionally, the artist takes home 10% of the revenue they generate and other parties take 90%.... With NFTs, the artist takes 90% and the platform takes 10%."
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- This article about Binance was written by Luca Escobar [@PepeBNB] for APfinanciero. We hope you enjoyed reading it and that you learned something new.
