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The popularity of crypto music, also known as audio NFTs , is making some serious waves in the creative industry, with the new music niche raking in over 20 million USD in February alone.

On Jan. Indeed, it was the first album from a major recording artist to be released as a non-fungible token, or NFT , an emerging digital collectible technology revolutionizing the art and music industry. The defining characteristic of crypto music is the use of NFTs. A music NFT could encompass anything from an album, song, piece of merchandise t-shirts, stickers etc.

It is simultaneously a genre, medium and a media format. For example, Kings of Leon released merchandise authenticated by NFTs alongside their latest album, and the Canadian musician Grimes released exclusive content digital images of cherubs set to her music. A non-fungible token NFT is a cryptographic token that records who owns a piece of digital content on the blockchain.

NFTs are generally stored on the Ethereum blockchain, although other blockchains, such as Flow and Tezos , have started supporting them as well. NFTs are unique digital assets and as the name suggests, non-fungible. This lack of exchangeability makes NFT adaptable to securing unique items such as contracts, digital art, and this case � music. This would be like exchanging a Dali for a M. Escher � their respective values are not equal. As NFTs leverage blockchain technology, they are uniquely suitable for securing intellectual property.

They enable ownership tracking and establish providence. Each individual transaction is recorded, and like brush strokes on a painting, this makes the work increasingly unique and uncopyable. NFT technology could turn the music industry, which is controlled top-down, on its head. This revenue is divided between myriad entities such as promoters, distributors, producers etc. The financial woes this slow and low payment causes artists is currently compounded by the hiatus on touring caused by the ongoing global pandemic.

Recording artists can earn additional revenue or royalties following an initial sale. NFTs simultaneously enable fans to own portions of the music they love, while providing artists with an avenue to securing their intellectual property. The use of NFTs and smart contracts could render the services offered by scalpers obsolete in the post-pandemic concert world.

Founded in , Yellowheart is a blockchain ticketing platform which ensures the authenticity of digital tickets. The artist also has full control over how each ticket is purchased and resold, making them exceedingly difficult to scalp.

Analogously, minting NFTs is often cited as being extremely energy intensive, and thus an environmentally destructive process. In , the mining of Ethereum was estimated to have used more energy than the entire country of Iceland.

While this has since improved as proof-of-stake blockchains slowly replace proof-of-work ones, these are issues which will need to be addressed � though to what extent, no one can be sure. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.

This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. Zora is an NFT marketplace protocol where creatives can publish their work as tokens, sell them to buyers and collect profits.

An artist first sells their work, but then owners can sell this same NFT to other buyers. Artists earn a share of the sale price each time an NFT is sold, so creatives continue to receive proper compensation for their work.

Blokur is a source for global publishing data for the management and monetization of music. It uses both AI and blockchain to combine different sources of rights data in one database. The blockchain then allows music publishers to catalog their work for the community to see and unanimously approve.

BitSong is the first decentralized music streaming platform dedicated to artists, listeners and advertisers. The blockchain-based system lets artists upload songs and attach advertisements to them. For each advertisement listened, the artist and the listener will get up to 90 percent of the profits that were invested by the advertiser. In addition to its work in other industries, Blockpool creates digital tokens, formulates smart music contracts and tracks licensing and intellectual property rights for the music industry.

The company helps musicians implement blockchain throughout the whole production, distribution and management process. Audius is a fully decentralized streaming platform with a community of artists, listeners and developers who collaborate and share music. Audius eliminates the need for third-party platforms by connecting artists directly with consumers.

Additionally, Audius uses blockchain to ensure that artists get paid fairly and immediately via smart contracts. OnChain Music exists to help its roster of artists, bands, singer-songwriters, DJs and musicians of all kinds earn more money from their royalties through blockchain and the sale of NFTs.

Written by Sam Daley. Image: Shutterstock. With blockchain, musicians are able to receive equitable royalty payments, venues are able to curb counterfeit tickets and record companies can easily trace music streams and instantly pay all artists who contributed to songs or albums. Sound View Profile. Digimarc View Profile. We are hiring.

Mediachain View Profile. Royal View Profile. Open Music Initiative View Profile. Musicoin Foundation View Profile. OneOf View Profile. Async Art View Profile. Mycelia View Profile. Viberate View Profile. Blokur View Profile. BitSong View Profile.

Blockpool Limited View Profile.

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