Kings of Leon created a lot of buzz when they announced that they will offer their latest album 'When you see yourself' as a non-fungible token or as they are more commonly known NFT.
What is an NFT (non-fungible token)?
"Non-fungible" means that something is unique and can't be replaced. For instance, you can exchange one bitcoin for another and you would be left with one bitcoin i.e. the same thing. However, if you exchange a painting by Monet with a painting by Picasso, you would have a completely different painting. A Monet painting is therefore non-fungible. Most NFTs are part of the Ehtereum blockchain. Ethereum is a crypto-currency. However, its blockchains also support NFTs. Other blockchains may also choose to introduce their own versions of NFTs.
Examples of NFTs
Anything digital can be made into an NFT. Digital drawings, music, videos, etc. NFTs are currently being used extensively to sell digital art. For example, recently a 10-second video clip by digital artist Beeple sold for 6.6 million USD. You can watch the video online for free. This is because though NFTs are designed so that they can't be copied. However, the artist can still retain the copyright and reproduction rights. To continue with the example of paintings, anyone can buy a reproduction or print of a Monet painting but only one person can own the original.
The Kings of Leon NFT
The band is offering a package that will give users vinyl and a digital download. The NFT has been priced at $50 and was released Friday on the NFT platform YellowHeart. After a period of two weeks, the deal will no longer be available and the ban will
not make any more NFTs of this particular album.
According to Statista, Annual music album sales in the United States dropped by 18.7 percent in 2019 compared to 2018. Sales in 2019 amounted to 112.75 million units which are significantly lower than 331 million units sold in 2011. Over the years the music industry has constantly upgraded and adapted to new formats. The fall of physical sales of music in the forms of CDs and cassettes has led to a huge drop in revenues for the music industry. Could NFTs help fill that void? Only time will tell.
Featured Image: Associated Press