Blockchain technology and NFT s: a review in music industry
İnci Çağla GÜL ŞENKARDEŞ
Abstract
Purpose- Blockchain technology, which is one of the newest technologies, offers an unchangeable, transparent, and reliable data managementinfrastructure. Crypto assets, the use of which is rapidly becoming widespread with blockchain technology, are changing the dynamics of manytraditional industries. NFTs, one of the crypto asset types, have started to become widespread in the art industry very quickly, especially as of2020. A global application in the music industry regarding blockchain technology and NFT applications, which has the potential to cause asignificant transformation at the intersection of the art industry with digital technologies, was first implemented in 2021. In this article, a literaturereview is made on the advantages and disadvantages of the use of NFTs in the music industry, and a discussion is presented on the first application.With this research article, it is aimed to contribute to the academic literature in this interdisciplinary field, which is at the intersection oftechnology, art and marketing disciplines by discussing the future potential of NFT applications.Methodology- In the article, secondary source scanning and sample usage were examined as a method. Secondary sources used includes books,articles, and online publications on blockchain technology and NFTs. A first and global NFT project applied in the music industry is examined anddiscussed with literature review findings.Findings- NFT applications in the music industry have advantages in the areas of proof of uniqueness, copyrights, new business models, digitalintegration, and security. The fact that NFTs depend on the blockchain infrastructure they are developed, privacy issues, difficulties in userexperience, and lack of legal regulations are the findings defined as disadvantages of NFTs.Conclusion- The use of NFT applications in the music industry and related products and services, which do not have many resources in the academicliterature, has been examined through publications and internet resources, and a sample application. While there are innovations and benefits thatcome with the implementation of NFTs, there are also obstacles to the implementation of these applications. This article presents a discussion ofthe advantages and disadvantages of using NFTs in the music industry and contributes to the Turkish academic literature. The results of thewidespread use of NFTs, which have the potential to provide significant advantages in the music industry, should be followed and supported byresearch.