What is Music NFT?

28 Feb What is Music NFT?

In this article we will try to explain what is Music NFT, using non-technical language.

So what is the Music NFT?

Just think of it as the vinyl record. When vinyl records are pressed, the music is imprinted into the physical vinyl of each record. The music NFT is very similar in a sense, just in digital form. With NFT, the Wav or MP3 music file is minted into an NFT (non-fungible token). The token itself is the encrypted block, which is sort of an encrypted wrapper for each MP3 file of your music composition. When each Music NFT is minted, each NFT becomes the unique asset that could have only one copy. NFT exists on top of the Ethereum network and could be sold and resold on any Ethereum based NFT marketplace.

Each vinyl record could have only one owner at the time, since it is impossible to break it into two halves. The same way, Music NFT can not have two owners. Each token minted is directly linked to one Ethereum address, and thus can only have one owner. That ownership is easily provable, similar to how your Ethereum currency resides in your crypto wallet, the same way NFT is attached to your unique wallet address and only you can have access to it. And you can not share it with anyone, unless you sell it, or send it to a different wallet. But as soon as you send it or sell it, you loose ownership of it to someone else.

Vinyl record can not be copied into another vinyl record, unless you have a vinyl record press, which only the factories can afford to begin with. Similar to that, Music NFTs can only have one copy of each other, which can not be tempered with. Quote from (https://ethereum.org/en/nft/): “Anyone running Ethereum software would immediately be able to detect dishonest tampering with an NFT, and the bad actor would be economically penalized and ejected.”

Just like vinyl record, each Music NFT could be sold and then resold. Value of each Music NFT could also grow over time, similar to how prices for some collectible vinyl records grow over time. Reselling NFT can come with the benefit of the royalties paid to the original creator every time it gets resold to someone else forever.

The original creator can set the maximum number of how many replicas could exist for each given Music NFT. This helps releasing Music NFTs as limited edition, making musical composition more appealing and exclusive to the music collectors. This is also similar to what number of the vinyl records has been released into the circulation. As many as were pressed and not a single more. You can not just copy/paste NFT similarly to how MP3 files could be copy/pasted. This in part helps preventing the piracy of your music.

Vinyl records often have more than one track, calling it an album. With Music NFTs, albums are also possible and actually make Music NFTs cheaper to purchase. The problem of the blockchains, especially the popular blockchains such as Ethereum is the gas price. Gas price is the amount of money it cost for each transaction made on top of Ethereum blockchain network. Ethereum allows selling bundles of tokens. Multiple Music NFTs could be bundled up, just like the music albums. So the Music NFT bundles, could be looked at as Music NFT Albums. Then fans can in one take, purchase a whole album and the gas price (transaction fee) will be very close to the fee of purchasing just NFT of a the single music track.

There is more to NFT as the technology. More technical details could be found on the Ethereum’s own NFT description page:
https://ethereum.org/en/nft/

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https://opensea.io/Megadance