Now I’ve explained the basics of what NFTs are and how they work, the next question is how might NFTs change and improve the music industry?
NFTs are becoming more and more prevalent in music. More artists are using them. Their fans buy them, which then ‘proves’ their loyalty towards the musician selling that NFT. NFTs deliver ownership of a prized asset. The better-known the artist, the more value the NFT is likely to have.
OpenSea and vinyl records
An example of a music NFT can be found among vinyl records. A vinyl record may be a collectible item because it’s a limited edition. If demand for that record is high and supply is severely limited, the price will rise. An NFT sold along side a highly prized vinyl record can prove the ownership of such an item.
The three most expensive vinyl records ever sold are:
- Wu-Tang Clan – Once Upon a Time in Shaolin – sold for $2 million
- The Beatles – The Beatles (White Album) – sold for $790,000
- Elvis Presley – My Happiness – sold for $300,000
OpenSea describes itself as “the first NFT vinyl records shop”:
The world’s first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs). Buy, sell, and discover exclusive digital items.
The OpenSea collection consists of 1111 unofficial unique LPs. Each LP has a cryptocode and links to Spotify and Apple Music, and this cryptocode was generated algorithmically and includes the record’s artist, title, release date, and so on. The LPs on OpenSea are unaffiliated with real artists’ albums.
As well as limited edition records, NFTs also work with a wide range of other physical and digital goods, and have other uses too, such as:
- Artwork
- Books
- Event and VIP tickets
- Airline tickets
- Real estate
- Smart contracts (programming that can execute contractual agreements)