Why all internet media is entering through crypto.
Crypto is providing an entryway for digital media, including music, written publications, and art, to join the metaverse and still be profitable.
28 NOVEMBER 2022
One thing about the music business is that ownership confers power. Traditionally, labels had control over musicians since they owned the music.
Some companies assist artists in maintaining control over their creative output and autonomously managing their businesses while leveraging technology to communicate with their audience. Online today, we are all creators, yet ownership still carries a lot of weight. But ownership's significance on technological platforms is frequently disregarded.
Every day, social media users share billions of photographs, movies, songs, and other types of media. A copy of the media is copied from the creator's device and pasted to the server of the site disseminating it—Facebook, Twitter, YouTube, TikTok, and so forth—when those files are posted.
While uploading may appear like a simple interaction, authors really copy-paste ownership of the file to the platform in addition to the material they are submitting.
I'm referring to the terms of service, which often state that when a file is posted, its ownership is given to the platform for however they choose to monetize it. Platforms can provide distribution or economies of scale that maximize ad-based profits, therefore this has certain benefits. But it's no secret that current revenue strategies don't always serve creators' interests. And this is the crux of the issue. Platforms have benefited disproportionately from owning the content of creators for far too long.
The Ownership Economy, a more general theory that the next generation of internet platforms will be directly created, run, and owned by users, is an alternative avenue that cryptocurrency is opening up in the meanwhile.
Some companies assist artists in maintaining control over their creative output and autonomously managing their businesses while leveraging technology to communicate with their audience. Online today, we are all creators, yet ownership still carries a lot of weight. But ownership's significance on technological platforms is frequently disregarded.
Every day, social media users share billions of photographs, movies, songs, and other types of media. A copy of the media is copied from the creator's device and pasted to the server of the site disseminating it—Facebook, Twitter, YouTube, TikTok, and so forth—when those files are posted.
While uploading may appear like a simple interaction, authors really copy-paste ownership of the file to the platform in addition to the material they are submitting.
I'm referring to the terms of service, which often state that when a file is posted, its ownership is given to the platform for however they choose to monetize it. Platforms can provide distribution or economies of scale that maximize ad-based profits, therefore this has certain benefits. But it's no secret that current revenue strategies don't always serve creators' interests. And this is the crux of the issue. Platforms have benefited disproportionately from owning the content of creators for far too long.
The Ownership Economy, a more general theory that the next generation of internet platforms will be directly created, run, and owned by users, is an alternative avenue that cryptocurrency is opening up in the meanwhile.
NFTs, or Non-Fungible Tokens, enable media artists to maintain ownership of their work while allowing for unrestricted online file distribution. As a result, NFTs have the potential to reverse the current ownership structure of media by providing a workable substitute for platform-driven monetization for creators, their consumers, and the developers who build for them.
NFTs can be conceptualized as files that exist on the blockchain. They cannot, therefore, be copied, pasted, changed, removed, or otherwise altered.
The same technical characteristics that make cryptocurrencies valuable also give rise to these assurances: NFTs, like Bitcoin, are digital tokens that can be purchased, sold, and traded, and whose ownership and provenance are always and immutably traced by the blockchain. You may prove that everything you own belongs to you, and no one else is required to act as an intermediary.
Digital media assets can now be owned in the same way as digital currency assets, such as Bitcoin, thanks to NFTs.
NFTs are perceived by many as a hot new tech toy or a bubble that will soon burst. While it's true that the money spent on digital artwork and cryptocurrency collectibles has been quick and spectacular, their utility contrasts sharply with the way platforms today make it possible for creators to monetize their work.
I think we are very close to having NFTs serve as the "port of entry" for all online media. This covers the web's 2D text, audio, and visual content as well as the burgeoning 3D content that will one day comprise the metaverse of games and virtual worlds.
The business model made possible by NFTs is better for all parties involved, including the creators, their viewers, and developers, who can all earn more money in a market based on actual digital ownership. This, in our opinion, is what will propel this future ahead.
NFTs can be conceptualized as files that exist on the blockchain. They cannot, therefore, be copied, pasted, changed, removed, or otherwise altered.
The same technical characteristics that make cryptocurrencies valuable also give rise to these assurances: NFTs, like Bitcoin, are digital tokens that can be purchased, sold, and traded, and whose ownership and provenance are always and immutably traced by the blockchain. You may prove that everything you own belongs to you, and no one else is required to act as an intermediary.
Digital media assets can now be owned in the same way as digital currency assets, such as Bitcoin, thanks to NFTs.
NFTs are perceived by many as a hot new tech toy or a bubble that will soon burst. While it's true that the money spent on digital artwork and cryptocurrency collectibles has been quick and spectacular, their utility contrasts sharply with the way platforms today make it possible for creators to monetize their work.
I think we are very close to having NFTs serve as the "port of entry" for all online media. This covers the web's 2D text, audio, and visual content as well as the burgeoning 3D content that will one day comprise the metaverse of games and virtual worlds.
The business model made possible by NFTs is better for all parties involved, including the creators, their viewers, and developers, who can all earn more money in a market based on actual digital ownership. This, in our opinion, is what will propel this future ahead.
Here are some answers to often-asked NFT-related queries to further explain this.
How do NFTs function?
In reality, an NFT is only a special token that stands in for a digital file. Each has a distinct ID known as a canonical identifier. Any random metadata, such as who developed it, what it's about, or its price history, is hooked to that ID.
This information is immutably registered on the blockchain when an NFT is created by a creator and functions as a kind of digital passport for the creation.
In the future, whenever that piece of material is shared on another network, that platform will be able to "check its passport" and view the whole history of the distribution. This implies that references to a concept can be made to its original, unmodified record that was recorded on the blockchain. Internet images don't have to be two-dimensional boxes anymore. Instead, it can adopt a "Z-Axis" in which all of its background and history can be learned by outsiders, increasing its cultural and monetary value.
Is owning digital art worthwhile?
Why gather NFTs at this time?
NFTs are collected by people for a variety of purposes. It might be the excitement of coming upon a promising new artist or piece of art, the appeal of a work's potential cultural significance, the social prestige of possessing a one-of-a-kind, canonical piece, or the chance to make money by reselling the piece in the future.
Many people currently gather in NFTs (and other crypto marketplaces) for speculative value. NFT markets are reflexive, much like the rest of the cryptocurrency market. Similar to cryptocurrency and conventional art, the more people who believe an asset might be valuable—even for purely arbitrary reasons—the higher the actual value it will normally sell for.
As an illustration, consider how the reflexivity of Bitcoin markets developed as the currency gained acceptance and eventually gained pace from a pizza meme coin to a major reserve asset. Similar to NFTs, they may first appear to be little more than fun for crypto whales, but as more money enters these markets—and as more producers manufacture tokens and participate—outsiders will start to witness value moving hands, and the perceived worth will increase. This form of reflexivity produces a positive feedback loop that frequently contributes to the gradual increase in market activity.
Where are NFTs going in the long run?
Returning to usefulness, it should be noted that, as with many hype cycles in technology, speculative value frequently gives way to functional value. Any developer can create on top of these assets because they are open and programmable. Additionally, because NFTs are movable by users, programmable assets can acquire new applications throughout the entirety of our digital universe.
As they let programmers to create and remix DeFi apps, tokens and smart contracts have been dubbed "money legos." Similar to Legos, NFTs are "media legos" that designers and producers can use to create new experiences without asking for permission. Users might anticipate richer experiences and compounding utility around their possessions as a result.
As they let programmers to create and remix DeFi apps, tokens and smart contracts have been dubbed "money legos." Similar to Legos, NFTs are "media legos" that designers and producers can use to create new experiences without asking for permission. Users might anticipate richer experiences and compounding utility around their possessions as a result.
The adoption of NFTs: inevitable?
Because everyone involved can profit more from the markets they enable—creators can profit more by selling directly to their fans and by earning royalties whenever their NFTs are resold—I believe that NFTs will eventually become the gateway to all digital material. Only real digital ownership, which may embed royalty logic in the media itself, can enable this brand-new revenue stream.
NFTs are a better business model for customers because they mix the social and utilitarian advantages of patronage with the potential for financial gain or the realization of compounding utility. Consumers today rent access to the majority of products and services on the internet, including the creators they support. The incentive alignment that results from having skin in the game is a fundamental element of emerging Ownership Economy platforms.
Builders can profit by creating structures that support these emerging markets. Developers operating on permissionless infrastructure stand to participate in a developing market economy with property rights that, in many ways, work more like those in the physical world, while large platforms choke access to developer APIs and restrict free market development.
NFTs are a better business model for customers because they mix the social and utilitarian advantages of patronage with the potential for financial gain or the realization of compounding utility. Consumers today rent access to the majority of products and services on the internet, including the creators they support. The incentive alignment that results from having skin in the game is a fundamental element of emerging Ownership Economy platforms.
Builders can profit by creating structures that support these emerging markets. Developers operating on permissionless infrastructure stand to participate in a developing market economy with property rights that, in many ways, work more like those in the physical world, while large platforms choke access to developer APIs and restrict free market development.
Why all internet media is entering through crypto.
Crypto is providing an entryway for digital media, including music, written publications, and art, to join the metaverse and still be profitable.
28 NOVEMBER 2022
NFTs, or Non-Fungible Tokens, enable media artists to maintain ownership of their work while allowing for unrestricted online file distribution. As a result, NFTs have the potential to reverse the current ownership structure of media by providing a workable substitute for platform-driven monetization for creators, their consumers, and the developers who build for them.
NFTs can be conceptualized as files that exist on the blockchain. They cannot, therefore, be copied, pasted, changed, removed, or otherwise altered.
The same technical characteristics that make cryptocurrencies valuable also give rise to these assurances: NFTs, like Bitcoin, are digital tokens that can be purchased, sold, and traded, and whose ownership and provenance are always and immutably traced by the blockchain. You may prove that everything you own belongs to you, and no one else is required to act as an intermediary.
Digital media assets can now be owned in the same way as digital currency assets, such as Bitcoin, thanks to NFTs.
NFTs are perceived by many as a hot new tech toy or a bubble that will soon burst. While it's true that the money spent on digital artwork and cryptocurrency collectibles has been quick and spectacular, their utility contrasts sharply with the way platforms today make it possible for creators to monetize their work.
I think we are very close to having NFTs serve as the "port of entry" for all online media. This covers the web's 2D text, audio, and visual content as well as the burgeoning 3D content that will one day comprise the metaverse of games and virtual worlds.
The business model made possible by NFTs is better for all parties involved, including the creators, their viewers, and developers, who can all earn more money in a market based on actual digital ownership. This, in our opinion, is what will propel this future ahead.
NFTs can be conceptualized as files that exist on the blockchain. They cannot, therefore, be copied, pasted, changed, removed, or otherwise altered.
The same technical characteristics that make cryptocurrencies valuable also give rise to these assurances: NFTs, like Bitcoin, are digital tokens that can be purchased, sold, and traded, and whose ownership and provenance are always and immutably traced by the blockchain. You may prove that everything you own belongs to you, and no one else is required to act as an intermediary.
Digital media assets can now be owned in the same way as digital currency assets, such as Bitcoin, thanks to NFTs.
NFTs are perceived by many as a hot new tech toy or a bubble that will soon burst. While it's true that the money spent on digital artwork and cryptocurrency collectibles has been quick and spectacular, their utility contrasts sharply with the way platforms today make it possible for creators to monetize their work.
I think we are very close to having NFTs serve as the "port of entry" for all online media. This covers the web's 2D text, audio, and visual content as well as the burgeoning 3D content that will one day comprise the metaverse of games and virtual worlds.
The business model made possible by NFTs is better for all parties involved, including the creators, their viewers, and developers, who can all earn more money in a market based on actual digital ownership. This, in our opinion, is what will propel this future ahead.
Here are some answers to often-asked NFT-related queries to further explain this.
How do NFTs function?
Is owning digital art worthwhile?
Why gather NFTs at this time?
NFTs are collected by people for a variety of purposes. It might be the excitement of coming upon a promising new artist or piece of art, the appeal of a work's potential cultural significance, the social prestige of possessing a one-of-a-kind, canonical piece, or the chance to make money by reselling the piece in the future.
Many people currently gather in NFTs (and other crypto marketplaces) for speculative value. NFT markets are reflexive, much like the rest of the cryptocurrency market. Similar to cryptocurrency and conventional art, the more people who believe an asset might be valuable—even for purely arbitrary reasons—the higher the actual value it will normally sell for.
As an illustration, consider how the reflexivity of Bitcoin markets developed as the currency gained acceptance and eventually gained pace from a pizza meme coin to a major reserve asset. Similar to NFTs, they may first appear to be little more than fun for crypto whales, but as more money enters these markets—and as more producers manufacture tokens and participate—outsiders will start to witness value moving hands, and the perceived worth will increase. This form of reflexivity produces a positive feedback loop that frequently contributes to the gradual increase in market activity.
Where are NFTs going in the long run?
Returning to usefulness, it should be noted that, as with many hype cycles in technology, speculative value frequently gives way to functional value. Any developer can create on top of these assets because they are open and programmable. Additionally, because NFTs are movable by users, programmable assets can acquire new applications throughout the entirety of our digital universe.
As they let programmers to create and remix DeFi apps, tokens and smart contracts have been dubbed "money legos." Similar to Legos, NFTs are "media legos" that designers and producers can use to create new experiences without asking for permission. Users might anticipate richer experiences and compounding utility around their possessions as a result.
As they let programmers to create and remix DeFi apps, tokens and smart contracts have been dubbed "money legos." Similar to Legos, NFTs are "media legos" that designers and producers can use to create new experiences without asking for permission. Users might anticipate richer experiences and compounding utility around their possessions as a result.
The adoption of NFTs: inevitable?
Because everyone involved can profit more from the markets they enable—creators can profit more by selling directly to their fans and by earning royalties whenever their NFTs are resold—I believe that NFTs will eventually become the gateway to all digital material. Only real digital ownership, which may embed royalty logic in the media itself, can enable this brand-new revenue stream.
NFTs are a better business model for customers because they mix the social and utilitarian advantages of patronage with the potential for financial gain or the realization of compounding utility. Consumers today rent access to the majority of products and services on the internet, including the creators they support. The incentive alignment that results from having skin in the game is a fundamental element of emerging Ownership Economy platforms.
Builders can profit by creating structures that support these emerging markets. Developers operating on permissionless infrastructure stand to participate in a developing market economy with property rights that, in many ways, work more like those in the physical world, while large platforms choke access to developer APIs and restrict free market development.
NFTs are a better business model for customers because they mix the social and utilitarian advantages of patronage with the potential for financial gain or the realization of compounding utility. Consumers today rent access to the majority of products and services on the internet, including the creators they support. The incentive alignment that results from having skin in the game is a fundamental element of emerging Ownership Economy platforms.
Builders can profit by creating structures that support these emerging markets. Developers operating on permissionless infrastructure stand to participate in a developing market economy with property rights that, in many ways, work more like those in the physical world, while large platforms choke access to developer APIs and restrict free market development.
