As the NFT market expanded, music artists gradually became interested in this new technology. In this article, we want to introduce you the Audio NFT and provide a general prediction about the music industry future.
Audio NFT, also known as encrypted music, has revolutionized the music industry. This new method generated more than $20 million, just in February 2021. Professionals predict that this method, using blockchain, will help artists solve many problems in the music industry such as copyrights, ownership, and more efficient supply and demand management. In February 2021, for example, popular music producer DJ 3ALU grossed $11.6 million in 24 hours selling its Audio NFT. Also the Canadian musician, Grimes recently grossed $ 5.8 million selling NFT Audio in just 20 minutes. It usually takes years for an artist to make that kind of money. Audio NFT, however, helps artists reach their fans and attract new audiences without any intermediaries. These are just a few examples of the NFTs' revenue stream for artists. To give you a better understanding of Audio NFT, we have given a brief definition of NFT.
NFT or non-fungible token is a unique digital asset which you can not replace with anything else. In the arts and music industry,
is a certificate of ownership of a digital asset. NFTs can be of different types such as photos, videos, audio and other digital assets.
Crypto Music or Audio NFT includes anything like a collection of songs, melodies and artists' albums. At the same time, it can be a genre, a format of the media and the media itself.
NFT innovation, as mentioned earlier, gives artists real ownership of the work. This means that it will be impossible to misuse the artwork. They are also relieved of costly litigation in the courts. Likewise, it will be more difficult for people to steal music in the usual way, such as on private websites.
In the music industry, different people work in different positions. Music recording companies and music distribution platforms get a lot of money when fans play a song, or buy an album. Also, when a concert is held, the recording companies receive a percentage of sold concert tickets. In addition, artists earn most of their income through concerts but with COVID 19 live concert market has been shuted down since 2020 and directly affected artists' incomes. So artists are looking for another source of income, such as cryptomusic. Many musicians, such as Steve Aoki and King of Leon, now make their own NFT artwork and sell it in the NFT marketplaces. As a result, NFTs are becoming more necessary for artists. In NFT exchanges, the creator of a work receives money directly and without intermediaries by selling his works to fans, and fans store the digital content they purchase directly in their wallets.
Artists can receive royalties each time their work is resold. For example, each time an NFT Audio is traded on a digital trading platform, 10% of the cost of each sale goes to the artist who created the NFT.
One of the primary benefits of NFT is its ease of use. Fans just need a digital wallet to buy their favorite item from online stores. They can also take part in auctions and try their luck at winning. In addition to giving buyers ownership of digital assets, NFT helps original creators protect their intellectual property rights.
With this technology, artists have complete control over what they want to sell, from creating an NFT to selling it to different people. Another point is that in art auctions, different people discover the rare features of a work and each of them offers a considerable amount to buy it.
NFT tokens and smart contracts can be very useful in selling concert tickets and live performances. In this process, the tickets are converted to NFT, the ticket information is placed on the blockchain and their validity is guaranteed. Through this platform, the identity of the ticket buyer is registered, and thus the artists have full control over how they buy and sell their concert tickets. So far we have explored the hot and controversial topic of cryptomusic. In the following, we will provide you with a tutorial on converting an audio file to NFT.
You do not need to learn any language or computer coding skills to mint an audio NFT. There are several platforms that can easily convert your file to NFT and store it on Ethereum Blockchain.
To learn more about NFT platforms, read How to Buy and Sell NFT.
Here's how to convert an audio file to NFT on the OpeanSea platform:
● Log in to opensea.io. Click on the (Create) section.
In this section, you must connect to the digital wallet installed on your browser. To do this, use the Metamask wallet, which is the best wallet used by NFTs.
● After connecting to the wallet, in the page that opens, select and upload your audio file and choose a name for it.
● When the audio file is uploaded, it will ask for a photo as a cover.
● After selecting the cover photo, complete the information in the fields below.
1. External link: In this section, you can put your website to better introduce your product.
2. Descriptopn: In this section, you describe your NFT and its features.
3. Collection: In this section, you will place your audio file in the category of the collections you have created so far.
A full explanation of how to create a collection is given in the article of: How to work with the OpenSea platform.
In the Properties section, you can enter the properties that you have already defined for your collection, and this token (Which Token) has one of those properties. (This section is usually used for playing cards).
The Stats and Levels sections are also used for game cards and indicate the level of the item. If you enable the Unlockable content check box, the content download link will only be displayed when someone buys your token. (This section is specially for using IPFS).
After Creation, the commission fee amount will be deducted from your wallet and your audio file will be converted to NFT. Then you can share and sell your Audio NFT on the Opensea platform.
● After hitting the Creat option, the commission amount will be deducted from your volts and your audio file will be converted to NFT.
You can then share and sell your NFT Audio on the Opensea platform.
First select the NFT you want to sell from your profile.
● Then tap Sell
You will enter a page where you can select the price and type of sale. There are two price options:
1. Fixed Price
2. Auction Price
A fixed price is when you set a fixed price to sell your product. In the photo below, the fixed price of this NFT is one Ethereum. The auction price is when you put your product up for auction. You set a minimum price for your NFT and choose the time frame for the sale
● This time period is one day, three days, and one week by default You can manually change this interval using the calendar
● Finally you can also book your product for a specific buyer.
All you have to do is enter its address in the "Reserve for a specific buyer" field. The "Sell as a bundle" option puts your product in a package with other products you have grouped.
At the bottom of the page, you can see the amount of commission, which counts at 2.5 percent, and the percentage of royalties for the artist who made the NFT, which is usually between 10 and 12.5 percent of the maximum each time the product is sold. Finally you have to confirm your sale. You must sign the transaction to complete your sale. This is done by connecting to your wallet and confirming the transaction. Note that if you have not yet sold your product on Opensea, you must first confirm your digital wallet. Also, if the product you are listing for sale is not made by the Opensea platform and converted to NFT with other platforms or custom contracts, an additional confirmation or signature may be required to allow Opensea to trade that product on your behalf.
● When you list your product for sale, a page like the one below will open. Don't forget to share your NFT on social media.
● To view the list of products you have listed for sale, go to your profile and click on the Activity tab.
We now have a better understanding of the benefits of NFT in the music industry. This is an emerging industry and its infrastructure needs more time to develop. At the moment, prominent artists can convert their music to NFT and easily auction it off, but for the other artists, this process may not be profitable. We hope that in the future, a platform will be provided for this technology so that all artists can use these facilities.