NFTs are fast becoming a popular way to trade and license digital goods and claims on physical assets using crypto tokens. And one of the massive benefits to it is that artists and other creators have more control and ownership over their content in the digital sphere, as well as over the way it is monetized.
NFTs are fast becoming a popular way for creators to make a living without relying on traditional platforms, like media houses, record producers or film producers, for example. They enable creators and communities to have more ownership in what they are building and it could be a real game-changer, in a society where we undervalue the arts.
What are NFTs?
Understanding NFTs, like pretty much the entire crypto market, will be the decisive battle. Right now, its still only really understandable, as a concept, to a niche audience. And, until a mainstream audience becomes familiarised with NFTs, the blockchain-based platform won’t be able to operate to its full potential. At the same time, though, as NFTs become more commonplace, more and more people will begin to understand it and how the mechanism works.
Non-Fungible Tokens (NFTs) are unique digital assets whose ownership is tracked on a blockchain, such as Ethereum. Explaining the nooks and crannies behind NFTs and the mechanisms that make them so useful would is a tough undertaking, but it’s probably easier for you to read Linda Xie‘s beginner’s guide to NFTs. These assets, in the context of an artist, for example, will come in the form of digital art (VR art galleries are becoming popular).
Where does the value come from?
How do you give value to art when someone can simply make digital copies? Well, it can come in the form of verifiable scarcity, which can verify that a certain piece of artwork comes from the original artist and that it’s one of, say only ten that were made. In this way you’re able to derive value without the need for a middleman like art brokers and your art has value as a collectible in the same way that the original Mona Lisa has value and replicates are worth significantly less.
Furthermore, you don’t even necessarily need subscribers to be paying for your content. They can buy a license to distribute your content (ie. an NFT) and as your content grows, reaches more people and derives more value, your early buyers will be able to receive a share of the royalties that you receive on the content that they’ve financed. It’s kind of like a crowdfunding scheme for content.
By licensing their content, creators can receive one-time, monthly or annual crypto payments or in whatever structure they please. They don’t have to worry about media platforms changing the rules, because they’d easily be able to move their content elsewhere. And others can embed your licensed content in their own content on their platforms, with parts of those royalties being funnelled back to you for being the original producer.
And you can do the same with a blog or other written word content. Tokenising it through NFTs and using the digital infrastructure help with administration; it helps govern who can view/consume/listen to your content.
And movies and music do the same thing, selling NFTs that represent music or a movie which they can sell or finance. In the instance of a movie. You could have a small, locally produced film that has a cult following and they can help in financing the film’s distribution.
The NFT gives us the ability to administer and track that digital asset so that we can derive value in a way that’s completely unprecedented and directly rewards the creators themselves and their loyal followers! Not to mention, you can add things like free tickets to live shows or early screenings for films and other things like that.
So NFTs and using crypto to fund creators has the potential to be a real game-changer. It’s the next step in the evolution of media and art. We’re moving away from having to work for a publisher, record companies and so forth to produce our content, sell and distribute it online, with complete ownership and control over it and how it’s monetized.