In this report, I look at the current state of things in three key areas: What’s going on with blockchain? Where is music heading next? And what are we doing about it all.
The “nft for music” is a project that aims to create a decentralized music streaming service. The project will use NFTs, which are non-fungible tokens that can be used in the Ethereum blockchain.
Welcome back to the second installment of the State of Music report. We published Part One last week, detailing initiatives, trends, and procedures in the music3 domain, as well as possible future ramifications and concerns.
As we’ve seen over the last year, the music industry is undergoing a period of continuous and ongoing innovation, with various communities forming around mutual trust in these transformative technologies and a shared belief in a future in which an artist, fan, and collector are gradually fusing into one.
We are now working on web3 (the new internet), which has resulted in ideological conflicts, particularly with reference to legacy music business systems. This so-called competition between new inventive ways and more conventional legacy approaches has resulted in an unparalleled quantity of invention and ideas, making the music technology sector a fascinating market to monitor.
In the years ahead, technologies that improve the user experience will play a significant role. The problem is that, as of last year, more money had been invested on NFT tools for artists than had been invested in the artists themselves. It emphasizes the importance of these tools at this stage of the adoption curve in aiding the entire user experience, and that implementing the correct tools will assist push adoption even further.
They are required to remove various sorts of friction experienced by platform users, hence improving accessibility and overall experience. As a result, these tools will take various forms, such as assisting users in the completion of more complex tasks, such as the introduction of a credit card fiat currency payment option, and increasing the complexity of the task by, for example, allowing greater customization and control over the minting process.
As the platform’s popularity and use rise, so does the number of new ideas, platforms, initiatives, and users. It is highly probable that the following development of tools will substantially propel these processes forward in the near future, eventually making them more accessible and easier to use for the general public.
Concerns about the environment
It certainly is no secret that there are massive Concerns about the environment surrounding the CryptoArt industry. These concerns arise from the fact that the majority of cryptocurrencies used to buy and sell NFTs are responsible for a substantial amount of carbon dioxide emissions.
All currencies based on the proof of work system, such as Ethereum, depend substantially on computational power and energy to authenticate transactions, making them particularly immoral in terms of the very pertinent climate issues. As a result of this evolution, a considerable number of artists and creators see the advantages of the CryptoArt world, but do not utilize or advocate for the technology due to their position on the environment.
This leads to an intriguing scenario in which the technology itself offers a lot of optimism in terms of equality and economic redistribution within the music business, while also posing a significant cost in terms of contributing to pollution. Although it is difficult to anticipate the outcome of future events, it is vital to consider the following potential remedies to the issue that might be implemented in the near future:
To completely measure the consumption of energy in this scenario, a clearer differentiation between tokens and cryptocurrencies is required. Despite the fact that NFTs contribute to energy consumption and send comforting signals to miners all around the globe, it is important to note that the issue is anchored in cryptocurrencies and their operating mechanisms, not in the sales and purchases of tokens.
Currently, NFTs represent for a minor percentage of cryptocurrency energy use. What that means is that, with the right solutions in place in the crypto world, digital collectable technology has the potential to accomplish good while avoiding the immoral challenges that are now present.
Proof of stake vs proof of work is probably the biggest discussion happening in the world of cryptocurrencies with respect to Concerns about the environment. The thing is that proof of stake offers an alternative, non-energy heavy approach to validating transactions on the decentralized ledger of blockchain.
It operates via staking or locking in a certain amount of coins you possess in order to validate transactions without heavily relying on the computing power and energy. We are still yet to see the effect of a proof of stake implementation on a network as large as Ethereum, but there are certainly hopes of eliminating a substantial amount of energy waste. That in turn would alleviate some of the aforementioned Concerns about the environment.
In the end, it comes down to a systemic issue of a shortage of renewable energy. For example, if each artist put a portion of the earnings from the token sale towards renewable energy projects and technologies, the whole CryptoArt industry’s carbon emissions would be completely offset. This situation is remarkably similar to practically every actual environmental concern, in that the weight is placed on the shoulders of people rather than governments and organizations.
The sales and purchases of NFTs may certainly be considered in the same light as home individual energy use accounts for a little fraction of global environmental pollution compared to industrial and military energy waste.
To summarize, it is the belief that without more clearly defined systematic global legislation on climate change and the environment, we would be unable to completely transition to renewable energy sources, which would be an ideal solution to these (and many other) issues.
Simultaneously, in the absence of any significant adjustment, continued expansion in NFT sales, particularly low-cost, high-volume NFT sales, would undoubtedly have negative consequences for our environment.