Transformation of creativity and value in music through NFT and blockchain-based copyright management in the music industry

Year 2025, Volume: 12 Issue: 1, 95 - 107, 30.06.2025

Seyhan Canyakan

https://doi.org/10.5281/zenodo.15752912

Abstract

As in many areas of talent and creativity, the field of musical talent and creativity has also entered into new debates with recent technological developments. In this study, I aimed to examine the transformative effects of blockchain technology and NFTs (Non-Fungible Tokens) on copyright management and the creation of “value” in musical creativity (within the music industry). This research comprehensively analyzes the structural inadequacies of traditional copyright systems and the transformative potential of blockchain-based solutions. The research model is based on a methodological synthesis of case studies and theoretical paradigms. The findings demonstrate that blockchain’s decentralized architecture and the unique nature of NFTs provide artists with greater autonomy over their intellectual property; smart contracts automate royalty payments, democratize financial flows, and restructure the creator-audience relationship by eliminating intermediaries. Case studies such as the electronic musician RAC and the decentralized platform Audius concretely show how this technological integration reshapes artistic production and distribution mechanisms. However, the existing legal frameworks lag behind technological innovation. There are significant challenges to be addressed, such as inconsistencies between national and international copyright laws and uncertainties regarding the legal status of NFTs. Blockchain and NFTs have the potential to transform the ontological structure of the music industry by offering creative control, transparent copyright management, direct fan engagement, and alternative income streams for artists. These technologies also carry the potential to evolve the music sector toward a more transparent, fair, and artist-centered model. Therefore, all stakeholders in the industry may need to adopt this technological transformation strategically. Nevertheless, the ecological impacts of blockchain-based copyright systems, including energy consumption and digital carbon footprint, must also be discussed from a critical sustainability perspective. In evaluating the value of musical talent and creativity, it is now essential for disciplines such as musicology, technology studies, economics, and law to work together and adopt a holistic approach to the evolving dynamics of the digital art economy. In this context, blockchain applications in the music industry are interpreted through the cultural, socioeconomic, and epistemological dimensions of the global digital economy — not merely through the lens of technological determinism but also from the perspectives of artistic autonomy and social justice..

Keywords

Blockchain technology, Copyright management, Music industry, NFT, Smart contracts, Value of musical creativity

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