Let the music PLAY!
Fayre TL'DR:
What's New This Week?
Music
Music NFTs might just be the use case the crypto space needs to accelerate mainstream adoption. Let us dive in.
The International Federation of the Phonographic Industry claims that recorded music revenues?grew 18.5% ?in 2021 when compared to the previous year. Streaming alone accounts for $25.9 billion.
While these stats might seem impressive, this growth is quite insignificant for the average musician who still struggles to receive a decent payment when it comes to royalties. The highly paid super celebrities account for a very small percentage of overall musicians. This happens because the music industry has experienced significant disruption over the last 15 years, in particular with the advent of (music) streaming applications. There’s absolutely no denial that there’s been a strong technological leap which is focused on improving the experience for the listener (fans). Unfortunately, the subscription business revenue model has not followed that line of progress and has been disadvantageous for the creators (musicians). In effect, these centralised music platforms take an unfair share of the royalty payments. And this is where music NFTs that are combined with Web3 initiatives can play a role.
By definition, music NFTs are linked in some way to music - be it a song, a poster, or a concert ticket. They enable a different model, which allows artists to have both financial and creative freedom without dependence on record labels. Moreover, there’s more proximity between the artist and the fan, which can lead to a stronger relationship and more value being retained.
DJ Justin Blau (aka “3LAU”) is one of the musicians that has already transitioned to the Web3 world and turned down record label deals. In fact, he also joined the growing list of “cryptopreneurs” and started his own startup that allows fans to purchase copyrights of their favourite artists’ songs. Fans can now own something with emotional value attached, earn income from it and help their favorite artists succeed without dependence on middlemen who take a hefty cut from their streaming profits.
Other examples of innovation include blockchain-powered decentralised music streaming services with social media features that connect fans directly with artists and open the door to a range of new services, including the opportunity for fans to work directly with artists. This is another step in growing crypto economies and that enables the advent of the “creators economy”.
Above all, there’s no doubt this space will gain mainstream momentum, but it’s also true that individuals need to take initiative, learn more, show curiosity, challenge the status quo, try to build and help each other.
Web3 Never Sleeps
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Use This Ice-Breaker Next Time You Need One:
When we speak about Proof of Work there’s an important concept that’s associated with it: it’s called Hash power. It consists of the amount of cryptographic hashes performed per second by miners in the crypto mining process. It’s basically a measure of the network security.
In simple terms, lower hash rates imply lower security. And higher ones imply higher security. There’s also a trade-off between hash power and asset prices. When prices are rising more rapidly than mining difficulty, there are more miners wanting to join a protocol's mining process - as it becomes more profitable to do so. Conversely, this determines that hash power is adjusted upwards - making it more difficult to mine - and vice versa.
Prime mates!
Stick to it?
That's it for this week's full scoop! Please feel free to comment, share and discuss NFTs with us, we're here to help. Stay crypto-curious!!??
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