BLOCKCHAIN TECHNOLOGY AND NFT’S: A REVIEW IN MUSIC INDUSTRY

Year 2021, Volume: 8 Issue: 3, 154 - 163, 31.12.2021

Cagla Gul Senkardes

https://doi.org/10.17261/Pressacademia.2021.1454

Abstract

Purpose- Blockchain technology, which is one of the newest technologies, offers an unchangeable, transparent, and reliable data management
infrastructure. Crypto assets, the use of which is rapidly becoming widespread with blockchain technology, are changing the dynamics of many
traditional industries. NFTs, one of the crypto asset types, have started to become widespread in the art industry very quickly, especially as of
2020. A global application in the music industry regarding blockchain technology and NFT applications, which has the potential to cause a
significant transformation at the intersection of the art industry with digital technologies, was first implemented in 2021. In this article, a literature
review 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 of
technology, 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 and
discussed with literature review findings.
Findings- NFT applications in the music industry have advantages in the areas of proof of uniqueness, copyrights, new business models, digital
integration, and security. The fact that NFTs depend on the blockchain infrastructure they are developed, privacy issues, difficulties in user
experience, 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 academic
literature, has been examined through publications and internet resources, and a sample application. While there are innovations and benefits that
come with the implementation of NFTs, there are also obstacles to the implementation of these applications. This article presents a discussion of
the advantages and disadvantages of using NFTs in the music industry and contributes to the Turkish academic literature. The results of the
widespread use of NFTs, which have the potential to provide significant advantages in the music industry, should be followed and supported by
research.

Keywords

Blockchain technology, bitcoin, NFT, art, music industry

BLOKZİNCİR TEKNOLOJİSİ VE NFT’LER: MÜZİK ENDÜSTRİSİ ÜZERİNE BİR İNCELEME

Abstract

Amaç - En yeni teknolojilerden biri olan blokzincir teknolojisi değiştirilemez, şeffaf, ve güvenilir veri yönetimi altyapısı sunmaktadır. Blokzincir teknolojisi ile kullanımı
hızla yaygınlaşan kripto varlıklar geleneksel sektörlerde dinamikleri hızla değiştirmektedir. Kripto varlık çeşitlerinden olan NFT’ler, özellikle 2020 yılı itibarı ile çok hızlı
bir şekilde sanat endüstrisinde yaygınlaşmaya başlamıştır. Sanat endüstrisinin dijital teknolojilerle kesişiminde önemli bir dönüşüme neden olma potansiyeline sahip
olan blokzincir teknolojisi ve NFT uygulamaları ile ilgili müzik endüstrisinde küresel çaplı bir uygulama ilk kez 2021 yılında hayata geçmiştir. Bu makalede NFT’lerin
müzik endüstrisinde kullanımının avantaj ve dezavantajları üzerine literatür taraması yapılarak, hayata geçirilen ilk uygulama üzerinden bir tartışma sunulmaktadır. Bu
araştırma makalesi ile NFT uygulamalarının gelecek potansiyelinin tartışılarak teknoloji, sanat ve pazarlama bilim dallarının kesişiminde olan disiplinler arası bu alanda
akademik literature katkı sağlamak amaçlanmaktadır.
Metodoloji – Makalede yöntem olarak ikincil kaynak taraması ve örnek kullanım şekli incelemesi yapılmıştır. Kullanılan ikincil kaynaklar; blokzincir teknolojisi ve NFT
konularındaki kitap, makale ve çevrimiçi yayınları içermektedir. Müzik endüstrisinde uygulanan ilk ve küresel bir NFT projesi incelenerek, literatür tarama bulguları ile
tartışılmıştır.
Bulgular- Müzik endüstrisinde NFT uygulamalarının eserlerin benzersizlik ispatı, telif hakları, yeni iş modelleri, dijital entegrasyon, ve güvenlik alanlarında avantajları
bulunmaktadır. NFT’lerin blokzincir altyapısına bağlı olması, gizlilik sorunları, kulanıcı deneyimindeki zorluklar, ve yasal düzenlemeler olmaması NFT’lerin
dezavantajları olarak tanımlanan bulgulardır.
Sonuç- İncelenen yayınlar ve örnek uygulama ile akademik alanyazında henüz fazla kaynak bulunmayan NFT uygulamalarının müzik endüstrisinde, ve bağlantılı ürün
ve hizmetlerde kullanımı incelenmiştir. NFT’lerin uygulanması ile ortaya çıkan yenilikler ve faydalar olmakla birlikte, bu uygulamaların hayata geçirilmesinin önünde
engeller de bulunmaktadır. Bu makale, müzik endüstrisinde NFT kullanmanın avantaj ve dezavantajlarının bir tartışmasını sunmakta ve Türkçe akademik alanyazına
katkı sağlamaktadır. Müzik endüstrisinde önemli avantajlar sağlama potansiyeli olan NFT’lerin yaygınlaşmasının üreteceği sonuçlar takip edilerek araştırmalarla
desteklenmelidir.

Keywords

Blokzincir teknolojisi, bitcoin, NFT, sanat, müzik endüstrisi

References

• Beck, R. Stenum Czepluch, J. Lollike, N. S. Malone. (2016). Blockchain – the gateway to trust-free cryptographic transactions. Twenty-Fourth European Conference on Information Systems (ECIS), İstanbul, Turkey, 2016. Springer Publishing Company.
• Cohen, B. Amorós, J.E. Lundyd, L. (2017). The generative potential of emerging technology to support startups and new ecosystems. Business Horizons, 60(6): 741–745.
• Coin Market Cap., (2020). NFT Collections Listed By 7 Day Sales Volume. Retrieved from https://coinmarketcap.com/nft/collections/ 11.06.2021
• Diesendorf, M., (2000). Sustainability and sustainable development. Sustainability: The corporate challenge of the 21st century, Sydney: Allen& Unwin, 2, 19-37.
• ERC721, (2020). A Class of Unique Tokens. Retrieved from http://erc721.org/ 07.05.2021
• Ethereum, (2021). Introduction to Smart Contracts. Retrieved from https://ethereum.org/en/developers/docs/smart-contracts/ 07.05.2021
• Gilbert, T., (2021). For sale: an overview of non-fungible tokens (NFTs) and IP. Retrieved from https://ipwhiteboard.com.au/for-sale-this-articlean-overview-of-non-fungible-tokens-nfts-and-ip/
• Glaser, F., (2017). Pervasive decentralisation of digital infrastructures: a framework for blockchain enabled system and use case analysis. Proceedings of the 50th Hawaii International Conference on System Sciences. 1543-1552. DOI: 10.24251/HICSS.2017.186.
• Griffin, J., (2018). Software licences as non-fungible tokens. Retrieved from https://medium.com/collabsio/software-licences-as-non-fungibletokens-1f0635913e41
• Halpin, H. Piekarska, M., (2017). Introduction to security and privacy on the blockchain. IEEE, Security and Privacy Workshops, IEEE European Symposium, 1-3.
• Holden, E. Linnerud, K. Banister, D., (2017). The imperatives of sustainable development. Sustainable Development, 25(3), 213-226 DOI:10.1002/sd.1647
• Iansiti, M. Lakhani, R. K., (2017). The truth about blockchain. Harvard Business Review, January-February, 1–17.
• Lemon, K. Verhoef, P. C., (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80 (6), 69-96.
• Majchrzak, A. Markus, M. L., (2014). Technology affordances and constraints in management ınformation sytems. Encyclopedia of Management Theory, Thousand Oaks: Sage Publications.
• Martine, G. Alves, J.E.D., (2015). Economy, society and environment in the 21st century: three pillars or trilemma of sustainability? Brazilian Journal of Population Studies, 32(3), 433-460. DOI:10.1590/S0102-3098201500000027
• Mccarthy, J. Wright, P., (2004). Technology as Experience. The MIT Press.
• McLuhan, M., (1964). Understanding Media: The Extensions of Man, The MIT Press.
• Nakamoto, S., (2008). Bitcoin: a peer-to-peer electronic cash system. Retrieved from https://bitcoin.org/bitcoin.pdf.
• Narayanan, A. Clark, J., (2017). Bitcoin's academic pedigree. Communications of the ACM, 60(12), 36-45. DOI:10.1145/3132259
• Regner, F. Schweiser, A. & Urbach, N., (2019). NFTs in practice – non-fungible tokens as core component of a blockchain-based event ticketing application. 40th International Conference on Information Systems (ICIS 2019). Munich, Germany, 8-15.
• Tapscott, D. Tapscott, A., (2016). The impact of the blockchain goes beyond financial services. Harvard Business Review, 10, 7-18.
• The Verge., (2021, May 17) NFT Explainer: What is blockchain crypto art? Retrieved from https://www.theverge.com/22310188/nft-explainerwhat-is-blockchain-crypto-art-faq
• The New York Times, (2018, May 18). Cryptokitty auction. Retrieved from https://www.nytimes.com/2018/05/18/style/cryptokitty-auction.html
• Tschorsch, F. Scheuermann, B., (2016). Bitcoin and beyond: a technical survey on decentralized digital currencies. IEEE Communication Survey Tutorial, 18, 2084-2123. DOI:10.1109/COMST.2016.2535718
• Waybackmachine, (2014, February 8). Ethereum. Retrieved from https://web.archive.org/web/20140208030136/http://www.ethereum.org/ 06.05.2021
• Yeşilorman, M. Koç, F., (2014). Bilgi toplumunun teknolojik temelleri üzerine eleştirel bir bakış. Fırat Üniversitesi Sosyal Bilimler Dergisi, 24(1), 117-133.
• Zhao, J. Fan, L. S. Yan, J., (2016). Overview of business innovations and research opportunities in blockchain and introduction to the special issue. Finance Innovation, 2, 28-38.
• Zheng, Z. Xie, S. Dai, H. Chen, X. Wang, H., (2017). An overview of blockchain technology: architecture, consensus, and future trends. Big Data Congress, 85-90.