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Today, @DojaCat announced the launch of her #NFT Marketplace: @JuicyDropsNFT in what is yet another artist swayed into this craze. But do NFT's make sense in Music other than being a vanity metric for buyers & yet another way to build an audience for Creators? Time for a 
Unless you have been living under a rock, you would have at least heard of NFTs. If not, check out this thread by @naval https://twitter.com/naval/status/1378954767863443461?s=21
Unlike #BTC 
, the asset itself is not scarce, meaning that the piece of digital art or song or any other asset which has been converted into an NFT, can simply be reproduced by anyone. Just like we downloaded the image created by @beeple, whose NFT sold for $69 Million.
, the asset itself is not scarce, meaning that the piece of digital art or song or any other asset which has been converted into an NFT, can simply be reproduced by anyone. Just like we downloaded the image created by @beeple, whose NFT sold for $69 Million.
It’s the classic example of the #MonaLisa. Anyone can rip-off of the painting and claim it to be the original, but because it is public knowledge that the original Mona Lisa resides in the #Louvre Museum in Paris, there cannot be any other painting that can claim to be original.
This is easy in the case of famous paintings such as the Mona Lisa, because of the history and prestige attached, however, it is impossible with digital assets based on the internet, where there is practically no way to prove ownership of a particular piece of digital art or song
NFT’s come in here, they enforce through consensus On-Chain, that the ownership of a particular asset is unique. It is easy to make the ownership of an asset programmable, meaning an Artist could ensure that when their NFT is resold, they earn a particular % off it as royalty.
But why are artists and musicians jumping on this train here? @steveaoki, @KingsOfLeon, @MickJagger & #DaveGrohl have seen their NFT’s been bought in public auctions for millions of $$. While a lot of it is for Charity, the truth is...
NFT's are fun. Artists and musicians are some of the most creative people on earth, and getting in early on a trend is just another entertaining way for them to connect with their fans. Even @elonmusk made an NFT of a song on NFT's. Does that mean it's a fad? Well, Not really.
They solve a real problem when it comes to verifying ownership of an asset, which was earlier trusted on centralized authorities. It is now easy for anyone to just tokenize and verify ownership of assets in a trustless and decentralized manner, with the records stored On-Chain.
So will eventually all artists start releasing their songs as NFT’s and mint millions? Very Unlikely. The biggest paradox with this is artists would want their work to be consumed by as many people as possible. NFT’s on the other hand gain value by being scarce.
As an artist, there are only so many people who would be able to consume their content if they start minting out NFT’s, and even then, only the really popular ones such as @steveaoki or @MickJagger could make money off it.
For an up-and-coming independent musician, who is just starting out, it is unlikely that the best option for them would be to release their work as NFT’s and limit the organic reach of their work.
So how can Blockchain solve the problem of artists not getting their fair share of revenues due to the complicated structure of the Music Streaming Industry? https://incentify.substack.com/p/streaming-wars
#Tokenising artist earnings and setting up a #SmartContract would directly eliminate the Record Labels. It would be as simple as a fan purchasing stocks of their favorite artists, like buying stocks of any company and participating in the future earning potential of an artist.
This might sound far-fetched, given the current state of the Music Industry, but #Crypto and #Blockchain open up possibilities to make assets and money programmable in a trustless manner, which was not possible earlier.
@clubincentify is working towards solving this problem, so keep checking this space for updates on that front. Till then, subscribe to our daily #Newsletter & enjoy our content, and DM us if you wish to discuss all things Music and Tech. https://incentify.substack.com/p/nfts-whats-hype-whats-real
