NFTs for DJs: How NFTs are Changing the Game for DJs
Want to stay ahead of new technology in the DJ space? Find out how blockchain and non fungible tokens (NFTs) are changing the game for DJs...
Most people have heard of Bitcoin, but the bigger story is the underlying blockchain technology. This new tech is starting to revolutionise the way we interact with the internet and own digital assets. Early adopters of blockchain can benefit the most from new opportunities including new ways of doing business in the music industry.
Blockchain Simplified
Blockchain is a way to track ownership of something without needing a central authority, like a bank. Instead of having a central banks database detailing what everyone owns, every computer on the network holds a copy of the entire history of transactions, showing what everyone owns. A central bank is the basis of a centralised technology, whereas blockchain allows for a decentralised system.
A decentralised system is preferable because it's not good to have one central bank hold all the power. What if the bank fails or corrupts the data? If everyone has a record of what everyone owns there can be no cheating the system.
In Web2, the internet we use everyday, we mainly interact with centralised systems. A great example within the music industry is Spotify. Spotify is a company that exists to make a profit by selling you a subscription to listen to music. Spotify doesn't make any music, instead they are a middleman who skim profit from the hard work of musicians. It's an exploitative arrangement. They hold all the power.
On the flip side in Web3 (the new blockchain based internet) we have decentralise apps like Audius. Audius is just like Spotify, it's a music streaming platform. The difference is that it's decentralised and artists have a say in how the platform is run, making a fairer system by cutting out the middleman. While the founders of Audius have a stake in the company via its own currency, it was founded on the principles of supporting artists and not exploiting them.
Web1 (1990–2004) was the early, static internet with read-only websites, where users could view content but had minimal interaction.
Web2 (2004–present) brought dynamic, user-generated content and interactive platforms (e.g., social media), but centralised companies managed and controlled data.
Web3 (emerging) can be seen as an evolution or extension of Web 2 technologies. It is a decentralised, user-controlled internet that leverages blockchain to enable direct ownership of data, and digital assets, and secure peer-to-peer transactions without intermediaries.
What is an NFT?
A non-fungible token (NFT) is a way of recording ownership of a digital asset on the blockchain. A digital asset like album artwork can be uploaded and 'minted' as an NFT. Minting means that a record of the digital asset's creation is made available on the network.
Now that it exists on the blockchain record, it can easily be traded. Furthermore, anyone on the network can check who owns the asset and see its transaction history.
This solves the problem of copying and piracy. Digital images like artwork can easily be copied. Therefore, it was difficult to determine the original creator or authentic owner of the work, leading to issues of piracy. Minting an NFT allows everyone to set the record straight and provide proof of authenticity and ownership.
This secure system makes it easier to monetise digital assets. In addition, NFTs can include contract information (smart contracts) to automatically distribute royalties to the creators of the works. Smart contracts are used when minting music NFTs so artists can rightfully earn proper royalties when their music is used in Web3.
How Can DJs Use NFTs?
DJs have various opportunities to leverage blockchain technology. One of the easiest and established ways is with the use of NFTs to sell digital assets of some kind. Here are some example use cases for NFTs:
Music Releases
DJs who are also music producers releasing music will be used to releasing music on Web2. Typically on Web2 you would use a distributor like Distrokid to send your music to a variety of platforms like Spotify, Beatport, Apple Music, etc. They will then collect any earnings. Additionally, DJs may choose to mint special editions of their track as NFTs. Creating a unique product for fans to collect. This can also work in parallel to releasing on Web3 via platforms like Audius.
Sample Packs
Another great way to earn money from your music creations is to sell sample packs. You can record or create original samples and package them together as a NFT sample pack. It's even possible to sell individual samples or stems as NFTs. Your smart contract will detail what rights the buyer has and if any royalties may be due.
Gig Tickets
DJs can issue NFT tickets for their DJ performances that include exclusive bonuses such as, backstage access, meet-and-greet opportunities and special merch. Artists can tokenise experiences, meaning they can create NFTs that grant fans access to exclusive content or opportunities.
Digital Art & Digital Merchandise
DJs can mint digital art like photos, flyers, posters, animations, games, show visuals and videos. It's even possible to create NFTs for virtual avatars or items for VR and AR worlds.
Loyalty Programs
Artists can offer a loyalty program membership to help cultivate fan engagement. Each loyalty membership card can be minted as a unique and collectable NFT.
Virtual Reality and Augmented Reality Events
NFTs can be used to grant access to concerts and events held in virtual reality to augmented reality. These experiences will allow fans to attend from anywhere in world via a VR or AR headset.
Crowdfunding
NFT-based crowdfunding can allow DJs and artist to raise money for key projects using NFTs. By selling future rewards they can both raise money and increase fan engagement. DJs can raise money for tours, album releases, club nights, vinyl record pressing and more.
Rights Management
Within Web3 DApps like Audius artists can use blockchain technology to manage their rights for music tracks, samples and creative works. This helps DJs manage their rights and ensure proper attribution and distribution of earnings.
Live Performance Footage and Audio
Artists can record their performances in both video and audio, mint and sell them as NFTs. These collectables act like memorabilia that fans can collect and trade.
Conclusion
Blockchain and NFTs allow DJs and artists to create new streams of income and fan engagement. Using platforms like OpenSea allow users to mint NFTs with relative ease and no coding experience. Web3 and decentralised apps are creating interesting new offshoots of the music industry and allowing artists to retain more control. The more artists embrace blockchain the more equitable it the music industry will become.
