What is Non-fungible token?

The American rock band called Kings of Leon has released a music album recently. The music album was launched as a non-fungible token (NFT). Thus, the band has become the first ever to distribute the digitised art.

Highlights

The new album of the band is titled as ‘When You See Yourself’. It will be distributed in three tokens under the series called ‘NFT Yourself’. One token will be provided as a special album package. Second token will be offering live show perks such as front-row seats for life while the third token will be offering the exclusive audio-visual art. This system was developed by YellowHeart which is a New York City-based ticketing firm. This firm is also specialised in the blockchain technology. The album will be released on the music-streaming platforms such as apple music, Spotify, and Amazon. However, the version with the special perks will only be available on the YellowHeart platform.  This concept of ‘smart contracts’ can also be used for general tickets which will allow the artists to earn a small percentage of money when the NFT is resold.

What is Non-Fungible Token?

It is a special type of cryptographic token which represents somethings which are unique. These tokens are not mutually interchangeable. This is opposite to the cryptocurrencies such as bitcoin. It is a type of crypto-asset that represents several numbers of assets such as tickets, artforms, and music.  Such type of asset is gaining its popularity because several investors and enthusiasts are interested to spend a large sum of money on items which only exist digitally. These tokens are used to create digital scarcity and digital ownership. It can also be used in online gaming, crypto art and digital collectibles.

Month: Current Affairs - March, 2021