The crypto world is constantly innovating and creating new technologies that can benefit different industries worldwide. With the creation of NFTs and the security and reliability of blockchains, various entertainment industries are seeing the advantages of incorporating this technology into their markets.
NFTs are encrypted tokens on blockchain networks that contain metadata regarding a real-life or digital asset. NFTs are immutable records of ownership of these assets and can sometimes even include an encrypted version of the asset file within the NFT. Because blockchain networks are so secure, trading and investing in NFTs can be a great business move or a way to diversify your digital portfolio. NFTs can impact various industries worldwide, particularly creative industries that utilize digital intellectual property of individuals. NFTs create digital scarcity, generating a highly lucrative online marketplace for these rare and encrypted certificated of ownership. To learn more about NFTs and best practices for investing, join a crypto knowledge base such as FTX to learn the basics of crypto 101 and how to invest in NFTs.
The NFT art market has skyrocketed in the last several years. The NFT market is an open marketplace where creators can list any type of NFT for sale. Typically, these NFTs are digital artworks such as paintings, gifs, videos, music, photographs, etc. In 2020, NFT sales reached a high of $95 million, but just a year later, in 2021, NFT sales topped $25 billion. This unprecedented increase can be attributed to more and more celebrities, collectors, and creators joining and endorsing the NFT marketplace, generating impressive hype and high ticket prices for some rare NFTs. The use of blockchain technology and NFTs virtually created the entire digital art market as we know it today. Before using NFTs, artists had little control over their intellectual property once uploaded to the web. Now, there is an immutable record of ownership and provenance to each digital artwork that adds inherent value to the asset.
Video game developers worldwide are exploring the possibilities of crypto in the gaming industry. Play-to-earn game structures have been developed in blockchain games that hold entire cryptocurrencies. In-game items for purchase or collection are all unique NFTs on the blockchain. By building games on blockchains, developers give users control over the in-game economy and reduce any risk of fraud or duplication of game keys, etc. Security and trust issues plague the gaming industry worldwide, but with the adoption of blockchain technology for gaming, these issues can be resolved for good.
If NFTs continue to grow in popularity and value, the music industry could see big upsets as more musicians opt to mint their music into NFTs. Unfair pay for musicians is a severe problem in the music industry, particularly for those who use streaming services. Almost all money seen from songs goes to record labels, agents, streaming fees, etc., rather than the musician. With NFTs, artists have the opportunity to sell their songs for much higher price tags than they would ever receive through streaming platforms or from record labels. NFTs give artists greater control over their property and allow musicians to be paid more fairly. NFTs allow artists to maintain ownership of their property and receive royalties when that asset is resold in the future or distributed. These mechanisms within the blockchain and NFT itself can prove highly valuable to musicians worldwide.
NFTs and cryptocurrencies have the potential to transform significant entertainment industries globally. Giving more power and control to digital creators can lead to innovation and more equitable valuations of individual work and intellectual property.