For decades, many artists worldwide have been deprived of much of what they deserve from their earnings. Intermediaries such as production houses in the world of music, publishing houses in literature, image sellers and the like earned much more than the creative creators and artists themselves.
This problem seemed unsolvable until a few years ago when the famous NFT appeared on the market. At first glance, NFT seems like another innovation in cryptocurrencies that people outside this industry know little about. Nonetheless, this is undoubtedly changing the situation favouring artists on a global level. What exactly is it about?
Before we give you further explanations, let’s first explain what NFT is to absolute beginners, shall we?
NFT is an acronym of the Non-Fungible token representing a non-interchangeable unit of data stored on a digital ledger, called Blockchain technology. There are numerous data units such as videos, photos, audio, memes, gifs, game assets, and much more.
Since each of these Non-Fungible tokens is uniquely identifiable, it’s clear that NFTs are very different from Blockchain cryptos like Bitcoin, Ethereum, and other significant altcoins. NFT ledgers are claiming to provide proof of ownership and a public certificate of authenticity. However, legal rights considering NFTs are still uncertain.
A good and relevant NFT broker owns a marketplace where anyone can purchase and sell Non-Fungible Tokens. With an NFT broker, people are self-employed and 100% responsible for finding their insurance, which isn’t cheap.
These brokers usually work alone without much live interaction with other team members. With an excellent demand for Non-Fungible tokens, anyone is able to invest in high-quality, secure websites and start attaining users, website traffic, and assessments. Hence, NFT brokers profit by charging creators to upload their assets.
As we mentioned in the introduction, intermediaries often earn the most from the artist’s works. When it comes to the music industry, did you know that at the moment, artists receive around 5-15% of music revenues? That’s devastating information and fact for them.
Through Non-Fungible Tokens, artists will be able to sell their artwork directly to fans and, in return, receive 100% of the revenue created, which is an excellent solution to a problem. It’s not likely for Non-Fungible Tokens to topple the big streaming platforms shortly. Nonetheless, NFTs will give the power back to artists and other creators. That’s where the power of NFTs lies.
If you were wondering how NFTs benefit fans, you have to be aware that through fractionalized Non-Fungible Token ownership, fans can own a digital copy of an artist’s artwork such as a song, album, picture, book, etc.
For instance, you can step further and utilize it as a means for fans to invest in their favourite and beloved artists. Just imagine a world where fans can receive royalties through Non-Fungible Token ownership accrued from streaming revenue. In conclusion, it all can densely benefit grassroots artists from all over the world.