If getting involved in the music royalty revolution sounds appealing, then you need to know what an NFT is. You might find they’re less mystifying and more useful than you first thought.
A new type of collectible has taken the world by storm in recent years. Digital artworks have been auctioned off for eye watering sums of money, with some cases bordering on the ludicrous. What exactly is an NFT, and why are they such a big deal?
Of course, we’re talking about something related to the blockchain and crypto. If you’re new here, Fractis is a music royalties NFT marketplace built on the Solana blockchain. We’re obsessed with music, as well as creating opportunities for artists and fans. That’s why the blockchain is such a good fit – it’s accessible, fast, and global.
We believe that you don’t have to be a crypto or investment expert to get involved in royalty sharing. But knowledge is power, and it’s always best to know exactly what you’re getting into.
So, without further ado, let’s take a look at NFTs!
Table of Contents
What Is an NFT?
NFT stands for “non-fungible token”. That might not clear things up much more. Fungible isn’t exactly an everyday word, but it is part of the finance vernacular. It basically means swappable.
So, a non-fungible token is something that can’t simply be swapped.
If you had a dollar, and John had a dollar, you could both swap, and you’d have the same thing you started with. This also applies to cryptocurrency, like BTC or ETH.
Meaning is attached to NFTs. Usually, they act as an authentication of ownership. So, if someone sold a copy of some album artwork as an NFT, the transaction of your purchasing it would be visible on the blockchain, proving you bought it.
How Do NFTs Work?
Like any other type of art or asset, an NFT’s value will be set by the market and demand. This means that NFTs can lose or gain value over time, making them perfect for long term trading.
Because they exist on the blockchain, NFTs will be stored in your crypto wallet. You can trade them for cryptocurrency in transactions that will be recorded on the distributed ledger technology that is the blockchain.
Common Types of NFT
NFTs come in different shapes and sizes.
The most popular and common type of NFT by far at the moment is PFPs and avatars. These are the kind that people proudly display on the Twitter profiles or other social platforms. Often, you’ll see them taking the form of some underwhelmed primate, or similar.
The benefit of having an avatar NFT is mostly just to flex and show off online. They don’t give back to the owner as such, but they do act as free advertising for the NFT creator.
Collectibles are another popular form of NFT. Think of trading cards for sports, only digital. Just like their physical counterparts, collectible NFTs can be more rare than others. This adds to their value, as well as the excitement (depending on where you’re standing) felt when searching for them.
Gamified NFTS having gained popularity recently, pushing a play-to-earn (P2E) model. Players can own in-game extra like skins, weapons, land, and accessories, as well as trade these assets for financial reward. These are also referred to as “crypto games”.
Music NFTs are another common type of NFT. Within this umbrella, you’ll actually come across NFTs in several guises. Artists might sell off albums as NFTs, including extra perks such as concert tickets or merch. Whilst this type of NFT bags you some sweet perks, it still doesn’t do very much.
Attaching music streaming royalties to NFTs is a relatively newer type of music NFT. It also is the best kind, and no – we’re not biased…
Okay, maybe we’re a little biased. But, it’s only because this is the kind of NFT that keeps on giving for everyone.
We already mentioned that Fractis is a music streaming royalties NFT marketplace. Artists can decide what songs or projects they share the royalties for, and exactly what percentage they share. Plus, it’s up to them to decide the price they sell for, they have complete control.
Fans will invest in their favourite artists by buying these NFTs, which will result in a regular passive income for them as the music is streamed. If an NFT gains value, a fan can resell it on Fractis and make a profit. The original artist will get a share of this resale revenue, which they set when they mint the NFT originally.
This is an attractive type of NFT to invest in because it is based on a productive asset. Music streaming is still growing in popularity, and accounts for 60% of recorded music revenue across the entire world. There’s never been a better time to invest in your favourite music and help artists you love create more.
Sign up to Fractis to get involved and become an NFT collector yourself!