WTF are NFTs

WTF are NFTs

Spotify is planning to add blockchain technology and non-fungible tokens (NFTs) to its streaming service, as excitement grows over the possibility of NFTs boosting artists earnings.

Two recently posted job advertisement show that the music streaming giant is hiring people to work on early stage projects relating to Web3, a term used to coin blockchain-powered networks.

Spotify is not the only Big Tech giant cashing in on the trade, with Mark Zuckerberg stating that Instagram would soon start supporting NFTs.

Blockchain technology acts as a digital ledger to certify the ownership of digital assets.

According to the market tracker Nonfungible.com, the vast majority of the $17.7 billion worth of NFTs traded last year were for visual artworks, games and collectibles.

The interest in the crypto space has started to show signs of waining over the past few weeks however there are hopes that the music industry could reignite the craze.

This could include selling digital albums or using NFTs to unlock perks at gigs, from merchandise to backstage passes.

Muscians including the ever enterprising Snoop Dogg and DJ Steve Aoki have already become prominent collectors in the NFT market, while American-based band Kings of Leon and Grimes have both sold NFTs of their music.

Music label giants Warner and Universal have both penned partnerships with NFT projects, including a virtual band featuring characters from the Bored Ape Yacht Club.

The streaming giant’s chief executive Daniel Ek told a company podcast in 2019 that the use of cryptocurrencies and blockchain could allow users of “a service like Spotify . . . to be able to pay artists directly”, especially across international borders or in regions where few people have traditional bank accounts.

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“That can open up massive opportunities where all of a sudden, a user in Japan might pay a creator in Argentina. And that opens up huge opportunities for how we can further our mission,” he said.