The world of non-fungible tokens (NFTs) has really taken off recently, with the music industry getting on board with the current movement.

There are some artists that have already brought out NFT projects that have brought plenty of attention from fans, while also bringing in a lot of money.

Musicians have famously had to go through record agencies in the past, but the more direct artist-to-fan interaction is helping the current crop benefit from the monetization of their work.

How does a NFT Label work with music?

What an NFT in music allows is for guaranteed ownership of a unique asset, so this could be the original recording of a song.

Musicians in the NFT world are able to get a certificate of ownership for a unique piece of music that can then be sold on to another outlet. But, it's worth noting that the owner of the NFT has the exclusive right to control how the work is used.

In the music sphere, an NFT grants the owner the right to music, album art or videos created to go alongside music, as well as exclusive access to content.

Impact of NFTs on the music industry

By selling music and related assets through the blockchain, the artist is able to create a direct relationship between themselves and the fan base without having to rely on the traditional methods, such as through a record label or even a music-streaming service.

Depending on how the process is handled, the artist - or creator - can find themselves ending up with a bigger profit, rather than the money ending up in the hands of a company.

Yet, there is a cost involved in creating music NFTs, as there is still a price for Ethereum gas fees, which are the cost to compute and record a transaction on the blockchain, and NFT marketplace fees for listing and selling work.

VIA