Welcome back to Part Two of the State of Music report. Last week we published Part One highlighting projects, trends and processes occurring in the music3 space, as well as possible future outcomes and considerations.
As we have seen in the last year, music industry It is experiencing a period of continuous and ongoing innovation, where diverse communities are built around mutual trust in these revolutionary technologies and a shared belief in a future where an artist, fan and collector gradually merges.
We are currently going through the web3 (new internet) creation process which has sparked ideological debates, especially regarding old music business structures. This so-called battle between new innovative approaches and more traditional legacy approaches then results in an unprecedented amount of innovation and ideas, making the music technology industry a very interesting market to follow.
Tools that improve the user experience will play a big role in the years to come. The thing is, as of last year, more investment has been made in NFT tools for artists than in actually the artists themselves. It highlights the fact that at this point on the adoption curve, these tools are extremely vital in helping the overall user experience, and applying the right tools will help drive adoption even further.
They are necessary to eliminate the different types of friction faced by users of the platforms, and by doing so they help. improve accessibility and overall experience. As a result, these tools will take different forms, such as helping users simplify more complex tasks such as introducing the credit card fiat currency payment option, and increasing the complexity of the task, for example by allowing higher customization and control of the mintage process.
As popularity and adoption continue to grow, so does the number of new ideas, platforms, projects, and new users. In the foreseeable future, it is very likely that the later development of tools will further these processes and, over time, make them more accessible and easier to use for the general population.
It’s absolutely no secret that there are major environmental concerns surrounding the CryptoArt industry. These concerns stem from the fact that many of the cryptocurrencies used to buy and sell NFTs are responsible for significant carbon dioxide emissions.
All coins running on a proof-of-work mechanism like Ethereum rely heavily on computational power and energy. verify transactionsand therefore, they become highly unethical tools in terms of very relevant climate concerns. As a result of this development, there is a significant number of artists and creators who see the benefits of the CryptoArt world, but who do not use and advocate technology solely for their stance on the climate situation.
This brings us to an interesting situation; While the technology itself holds great promise for equity and wealth redistribution in the music industry, it also has the very costly disadvantage of contributing to environmental pollution. It is of course impossible to predict the turn of events in the future, but nevertheless it is important to mention potential solutions to the problem that may bear fruit in the foreseeable future:
Clearer distinction In this case, the relationship between tokens and cryptocurrencies is vital to fully assess energy use. Although NFTs contribute to energy use and also send reassuring signals to miners all over the world, it should be underlined that the problem itself stems from cryptocurrencies and their operational mechanisms rather than token sale and purchase.
As of now, NFTs still make up a relatively small portion of cryptocurrencies’ energy use. What he’s telling us is that with certain solutions in the crypto world, digital collections technology has an opportunity to do well without the unethical concerns that are definitely evident right now.
proof of work vs proof of work It is arguably the biggest debate that has ever taken place in the world of cryptocurrencies regarding environmental concerns. The point is, proof-of-stake offers an alternative, non-energy-heavy approach to verifying transactions on the decentralized blockchain ledger.
It works by staking or locking a certain amount of coins you have to verify transactions without relying too much on processing power and energy. We have yet to see the impact of implementing proof-of-stake on a network as large as Ethereum, but there are certainly hopes of eliminating a significant amount of energy wastage. This, in turn, will alleviate some of the environmental concerns mentioned above.
The systematic problem of renewable energy shortage This is what boils down to at the end. For example, if each artist invests a portion of the proceeds from the token sale in renewable energy projects and technologies, the carbon emissions of the entire CryptoArt industry will be fully offset. This scenario is very compatible with almost every current environmental problem, namely the fact that the burden is on the shoulders of individuals as opposed to governments and institutions.
The sale and purchase of NFTs can certainly be seen in a similar light, as individual household energy use accounts for a very small fraction of global environmental pollution, as opposed to industrial and military energy waste.
Restatement is a concept without being more clearly defined. systematic global policy making Regarding climate change and the environment, we will not be able to fully switch to renewable energy sources, which would be the perfect solution to this (and many other) problems.
At the same time, further growth in NFT sales, and especially in very low cost – high volume NFT sales, will certainly have harmful effects on our environment if there is no significant change in this regard.
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*All investment/financial opinions expressed by NFT Plazas are taken from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to thoroughly research any product before making any investment.
Music data strategist and music artist. He is a co-founder of the IMA data analytics initiative, which is concerned with identifying trends and spreading awareness about the web3 transition in music.