Over the last several years blockchain and cryptocurrencies have been gradually changing the world and affecting different industries, but few industries have been affected to the same extent as the art, music, and digital industries. In the middle of this change is Ethereum, a decentralized blockchain that subsequently rose to prominence to form the basis for non-fungible tokens (NFTs). These NFTs are revolutionizing consumption, producing experiences of digital content and creating new value propositions of products for both producers and consumers. Therefore, NFTs are not only reshaping people’s conception of ownership but also disrupting conventional models of monetization for artists.  Smart contracts in Ethereum, one of the most popular BPs, make it possible to enable and sell NFTs. For those who have no knowledge of what Ethereum is, its current worth can be checked with a real-time Ethereum price index. It is worth mentioning that Ethereum’s blockchain is highly programmable and scalable; meaning developers can create decentralized applications (dApps) of various types that are not limited to money transfers.  What Are NFTs?  Before delving into how Ethereum is disrupting art, music, and ownership, let’s first begin with an understanding of what an NFT is. Cryptocurrencies are a form of digital currencies that are produced and managed through the use of blockchain technology, currently the most popular type includes NFTs, non-fungible tokens, which are unique identifiers that establish ownership of an original item or content. Thus, as opposed to cryptocurrencies such as Bitcoin or even Ethereum itself, which refers to a number of identical tokens or products that can be exchanged, NFTs are unique and unquestionably singular entities.  Artwork, music, videos, virtual real estate and even in-game assets are all examples of products that can be tokenized using NFTs. Every NFT has details of its location in the distributed ledger and has content that can show its legitimacy and ownership. This makes it possible for the creators to market their works directly to the users and this way the creators are able to guarantee that the original copy of the work is not double, while the copies can be multiplied or viewed online.  Ethereum’s Journey to Becoming the NFT Marketplace of Choice  Even though technically NFTs can be minted and traded on other blockchains, Ethereum has become the most popular blockchain for NFT sales. This is attributed to Ethereum’s smart contracts according to which transactions of digital assets can be initiated, executed and completed without the use of third parties. Automation of the transfer of property is the norm with smart contracts in that the code in the contract contains the terms of the agreement and once certain requirements are met, for instance payment, the ownership transfer takes place.  Ethereum’s ERC-721 token standard was created for NFTs and offers application programmers the ability to implement innovative tokens on Ethereum. This has given place to many decentralized NFT marketplaces like Open Sea, Rare Ability, and Foundation in which artists, musicians and creators can upload their works for sale. The above marketplaces use Ethereum blockchain technology in terms of ownership confirmation for the assets, genuineness confirmation of the items, and conducting transactions.  The Art World and NFTs  The emergence of NFTs can be seen as one of the biggest changes in the art community in recent years. In the past artists have sought the services of galleries as well as auction houses through which they sell their art with most of them receiving reduced revenues since most of the money goes to the middlemen. Artists can sell their art directly to consumers through NFT through decentralized platforms hence getting a larger cut of the total sales amount and more control over the price and places to sell their works.  Artists also have the opportunity to generate royalties with the help of NFTs. Smart contracts mean that artists can predefine certain conditions so that future re-sales would mean the NFT automatically pays the artist a certain percentage. This means that when an NFT is resold, the original artist still has an opportunity to generate more income from appreciation of the work which is almost impossible to be experienced in the art market.  NFTs and Music  There has been a constant problem in the music industry where artist remuneration is concerned and more so with the introduction of music streaming where artists earn a couple of cents for a listen. Moreover, using NFTs, musicians are receiving a new model of making money on their work and keeping the ownership of the materials.  With the help of NFTs, artists can offer individual items including musical compositions, albums, tickets to concerts, festivals, as well as meetings with the performer. For example, singers can drop singles or albums as NFTs which in turn gives fans a chance to own a limited version of the music item. Some artists are also selling rights of the sounds and music tracks in form of NFTs by entitling the NFT holders to receive revenues time the music is played or used for commercial purposes.  The Kings of Leon is one of the first major bands to incorporate NFTs into their music collection; the band released their album back in March 2021 as an NFT. Collectors who invested in the NFT edition of the album were privileged to an early listen of the album, an autographed vinyl copy of the album and tickets to a concert near them.  Musicians can write songs and upload them directly to Ethereum’s blockchain destroying the middlemen including record companies, music streaming sites, or event promoters, in the process, musicians can capture a lot more of the value that they create.  NFTs and Digital Ownership  But, it is turning the traditional way of owning assets on its head thanks to NFTs. In the pre-NFT world, owning a digital file often meant that one just had access to the original copy of something knowing fully well that numerous copies could be made. Still, due to NFT, one can truly own a piece of something digital, thus making pieces unique and valuable, something that previously was possible only with real-world objects.  And all this shift is not limited to the art or music space alone. For example, in Decentraland and The Sandbox, users are buying and selling virtual parcels of land and developing them in the form of NFTs. Such virtual real estate is also fully owned by the purchaser and can be built, sold or leased as the case may be, just as physical land.  Also, this approach has been adopted in the gaming industry by using NFTs to grant players an actual proprietorship of the commodities within the games. In traditional games, people can buy some items or skins but these items or skins are usually imbued in the game. Specifically, NFT players can purchase, sell on – and even transact with other players across various games – assets that possess tangible value in the game world.  Conclusion: An Array of Opportunities  Self-created NFTs on the Ethereum platform are revolutionizing how people view art, music, and ownership in the digital world. With the use of blockchain, NFTs allow artists, musicians, and creators to establish new income streams, expand their markets, and maintain copyright over their work. The opportunities of the NFT market’s further development and transformation and the improvement of the Ethereum platform consequentially contribute to constant innovations in the approach to the creation, sale, and ownership of digital assets in the future.  DISCLAIMER: No part of the story was written by The Signal editorial staff. The post NFTs on Ethereum: How Blockchain is Redefining Art, Music, and Digital Ownership  appeared first on Santa Clarita Valley Signal.