Over the past few years, we have seen a significant increase in the number of NFT platforms selling pixelated cartoon art and JPEGs of apes. But the potential of Web3 to revolutionise the ownership of digital property is by no means limited to PFPs.
For years the music industry has been calling for new technology that shifts the paradigm towards a model in which artists are more fairly compensated for the value they create, and it looks like Web3 and blockchain technology could help move this shift along.
Here are some of the key companies that are helping to make this happen along with how they plan to achieve it.
Sound.xyz
Sound.xyz is a Web3 music platform that looks to facilitate a more collaborative music movement. Sound.xyz has worked with big names such as Bobby Shmurda, Kate Nash and Snoop Dogg to help them mint their music projects as NFTs.
As a listener interested in buying a music NFT, you will be invited to a listening party, allowing you to meet other fans of the artist, share your opinions and showcase your early support.
As a holder of a unique NFT you will also have the ability to make a public comment on the song. And finally, you will be invited to the artist community discord, where you will have the opportunity to speak to the artists themselves.
Sound.xyz claims to have helped artists on their platform to raise over $4 million with their music. They aim to solve two major problems in the current music industry model.
Firstly, the issue of distribution. Most songs go unheard, 90% of streams go to the top 1% of artists, and Sound.xyz helps to solve this problem by sharing the rewards more equally amongst artists.
Secondly, the issue surrounding value. Currently, artists are only paid on average $0.003 per stream, and they believe that music is more valuable than this number would suggest.
Opulous
Ditto co-founder and CEO Lee Parsons has recognised the potential of Web3 in the music industry and has set up the company Opulous to allow creators to monetize their work using the OPUL token.
By buying the OPUL token, (built on the Algorand blockchain), you can then purchase “MFTs” of your favourite artist's work. Huge names such as Tyga, Lil Pump and Ardz Ardz have already listed some of their work on the platform.
By staking the OPUL token you can gain early access to upcoming MFTs and other exclusive benefits. One of the great things about the Opulous platform is that you can trade your MFTs with other fans and investors to build a portfolio of collectibles.
This gives the opportunity for fans to profit from the success of their favourite artists via skin in the game. If the audience can directly profit from the artist’s success then this gives them a massive incentive to talk about the project on social media and to their friends. In a way, the audience will be doing a lot of the marketing for the artists organically.
TokenTraxx
Like Opulous, TokenTraxx is a marketplace that allows fans to invest in their favourite artists, facilitated by their own TokenTraxx token, (built on the polygon blockchain).
However, there are several ways in which TokenTraxx differs slightly. Firstly, the NFTs minted on the platform combine art and music together to help the artist tell their story through a variety of mediums.
Their platform is not only for creators and collectors but also curators, allowing curators to profit from their ability to spot untapped potential by building brilliant playlists.
They are also the only platform on this list that offers a bespoke B2B advisory service, aimed towards businesses looking to utilise music as a part of their current and future brand offering.
This is a really interesting side to the business, and it is fantastic that they are able to recognise not only the potential of Web3 to benefit the music artist’s value proposition, but also the implications of Web3 music in the business world.
Pianity
“Everyone can listen to music. Only one can own it” Is the slogan plastered on the front page of the Pianity website.
They are a music NFT platform that focuses on the fundamental concept of scarcity. Each song that artists upload to the platform can be minted as an NFT with 4 levels of scarcity.
The different levels of scarcity allow different levels of ownership of the music, and therefore a varying level of rewards for the holder. This customizable approach to ownership is particularly interesting to record labels who are looking to make their way into the Web3 world.
One of the USPs of Pianity is the environmentally sustainable approach to business. NFts on the platform are minted using Arweave, a protocol that developed the proof of access method of verification. This is a technology that uses 100 times less energy than proof-of-work systems.
Audius
Arguably the biggest Web3 music platform, Audius has worked with some of the most well-known artists on the planet. Katy Perry, Nas, Jason Derulo and 3LAU just to name a few.
Audius works to provide all of the tools that an artist needs to start their Web3 music journey, all in one place. Artists can “create, grow and monetize all without the need to graduate off the platform or sign a record deal”.
Audius describes itself as a Web3 streaming platform, using the Audius token to reward sharing, uploading and listening.
Audius offers the opportunity for fans to download the stems of their favourite artists songs so that the community can post their own remixes of the song on the track page, helping to drive engagement and create a sense of community.
By Alex McCann