Asking whether NFTs are just digital collectibles may feel like a very 2021 question, but the updated 2023 answer is so much more exciting. Leaps and bounds have been taken in the blockchain space since then. If you’re wondering what can NFTs do, we’ve got you covered.
In the last few years, NFTs have travelled a bumpy road. Prices have skyrocketed and crashed, and their usefulness called into question. In 2023, the list of what NFTs can do continues to grow. At Fractis, we want you to get in on the action this year!
Life is full of ups and downs, peaks and troughs, pride then a fall. The world of NFTs is certainly no exception. Still a relatively new digital entity, the landscape of crypto and NFTs is volatile and capricious. It can be difficult to wrap your head around something that never seems to stay still for more than a day.
If you’re still not too sure what NFTs even are, don’t feel bad. We talk about them a lot around here (and we’ll explain why later), but they’re still not quite “mainstream”. You wouldn’t be blamed for feeling a little sceptical if you do know a bit about NFTs, either. But, we want to clear up any bad press or misconceptions, so you can benefit from the exciting NFT developments heading our way!
Table of Contents
What Are NFTs?
NFT stands for “non-fungible token”. If that doesn’t clear the mists any more, that’s very fair enough. Fungible isn’t exactly an everyday word. It’s nothing to do with mushrooms, but good guess. Fungible basically means swappable.
So, a non-fungible token is something that can’t simply be swapped.
You can swap a dollar for a dollar, or even one ETH for another ETH. You’d be left with the same thing you started with. But, even if you swap an NFT that appears identical from the outside, it wouldn’t be the same.
This is because an NFT is an authentication of ownership, and a unique token. At their core, NFTs are a string of code. Assets, like digital art or real estate property, are then attached to these code-based tokens. The token is what shows up in transactions on the blockchain. 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.
Are NFTs Just Digital Collectibles?
You’ve heard of trading cards or collecting stamps. These things are valuable to the people interested in them, and their scarcity or rarity dictate the price. Aren’t NFTs just a digital version of that? If so, what’s the big fuss about?
Well, NFTs are a digital version of trading cards, but they’re not just that.
Towards the end of last year, NFTs were the source of some pretty concerning news. Digital artworks that were bought up for millions of dollars were being valued at, in some cases, 97% lower than their original price. The majority of cases related to NFTs that were used as profile pictures or collectibles. People began questioning how useful they really were, and what the actual point of them was.
This fallout and chaos felt like a damning way to end the year for NFTs. The future, thought many, wasn’t looking particularly bright.
Despite the turmoil, plenty of people were viewing this as the perfect opportunity for NFTs to gain a new reputation. For people to see them differently.
NFTs with Utility
As it looked like the hype around Bored Ape Yacht Club and other artwork focussed collections was dying down, people started shouting about the other use cases of NFTs. Rather than just gaining you access to an exclusive club with bragging rights, what NFTs can do might surprise you.
An NFT with utility is an NFT with a real-world usefulness attached to it. Examples of this can be NFT tickets, which make event ticketing seamless, safer, and fairer. Or, NFT medical records, which enables hospitals around the globe to quickly and easily access patients’ medical histories and treat them effectively.
Utilising the incredibly clever and helpful technology that exists at the core of NFTs opens up a world of potential. Processes that help the modern world tick over can be simplified and streamlined with the help of NFTs. Whole industries can be transformed by adopting this innovative technology.
The Music Industry & NFTs
One of the industries that can benefit massively from NFTs is the music industry.
A music NFT is a token that is linked to anything musical. It could be a song, album artwork, music video, or access to an artist’s fan club.
Musicians’ ability to create NFTs from their work has enabled them to take back control of their art. Blockchain technology and smart contracts mean no middlemen taking financial cuts. It also means the decision-making is in the hands of the artist – right where it should be. The sense of community created with music NFTs helps to bolster artists’ careers, gaining them more dedicated support from fans.
A big game changer for the music industry is music royalties NFTs. Specifically, NFTs linked to music streaming royalties. The digital streaming business is huge, and only getting bigger. With this format being a key source of revenue for both major and independent artists alike, the value of NFTs linked to them is high.
If an artist needs to generate a chunk of revenue quickly, they can sell a percentage of their streaming royalties for a song, album, or project. This instant revenue could let them start a new project, or fund studio time or the hiring of other musicians. Since streaming tends to pay out monthly, it can take a long time to accumulate the amount of revenue needed to support a sustainable career as a musician.
Why Invest in Music Royalties NFTs?
Music NFTs are perfect for helping artists earn a living and fund their careers. But, what benefit do they give to the people who invest in them, i.e. music fans?
Well, there are a few fantastic reasons why you should invest in music NFTs.
- Show support – Like buying a record or gig ticket, buying an NFT supports the artist you love and helps them to continue making great music.
- Be a collector – Yes, this blog is about how NFTs can be more than just collectibles. But, building a cool collection is definitely a nice bonus whilst the NFTs you’re collecting have great, real-world uses.
- Get connected – Feel closer to your favourite artists than ever before. Be part of a club of like-minded people, and enjoy exclusive perks when you invest in music NFTs.
- Invest meaningfully – Put your money into something that will give back for you, but also for passionate creators who are at the heart of a very important industry.
- Be part of history – The NFT royalties revolution is growing, and is set to be huge. Say you were there at the start of it all, by investing in a music royalties NFT.
Another brilliant incentive for investing in music royalties NFTs is accessing a passive income. That’s right. Have money heading your way without you lifting a finger. Streaming royalties usually get paid out monthly, so if you own a fraction of a song’s royalties, you’ll receive that revenue accordingly each month.
If you’re intrigued, and wondering how you can get your hands on a music streaming royalties NFT, do read on.
Music Royalties NFTs with Fractis
We’ve answered the question of what can NFTs do. Now it’s time to answer the question of how you can get involved.
Fractis aims to be the number one marketplace for independent artists to sell fractions of their music royalties as NFTs. Fans will be able to buy NFTs, building their portfolio whilst supporting creators’ careers.
In the pipeline, fans will also be able to sell NFTs they have purchased directly on the marketplace. So, if you make a smart investment and bet on a rising star, the NFT you originally bought may have risen in value. When you resell an NFT, you stand to make a profit, but the original creator will also receive a percentage of this secondary sale. This creates a fair and sustainable ecosystem, that works for everyone at every stage of the process.
It couldn’t be simpler to invest in NFTs with Fractis. All you need to do is set up a wallet, which will give you somewhere to store your NFTs. We recommend a Phantom wallet, since Fractis is built on the super speedy and environmentally conscious Solana network.
Sign up to Fractis today, and be among the first to get involved in a new way to invest in music when the marketplace launches!