What is Soundwork?

What is Soundwork and How NFTs & AI Can Revolutionize Music Creation

tl;dr

NFTs can revolutionize the music industry by offering fairer compensation, direct sales to fans, and transparent ownership.
Soundwork is a decentralized platform that uses blockchain tech and AI to incentivize music producers, beatmakers, recording artists, and enthusiasts.
Soundwork leverages NFTs to create unique sonic landscapes, categorizing them into individual sounds, packs, elements, and tracks.
The Soundwork Marketplace serves as a hub for buying, selling, and leasing music NFTs, with a Smart Contract ensuring secure transactions and revenue sharing.
The SOUND Token drives governance, utility, and marketplace functions within the Soundwork ecosystem.
NFTs offer a pathway to fairer compensation for artists, democratize distribution, and deepen fan engagement.

NFTs and Music

NFTs hold the potential to revolutionize the music industry across multiple fronts, offering artists new avenues for empowerment, deeper fan connections, and diversified revenue streams. One significant impact is fairer compensation for artists. Unlike the minimal earnings from streaming services, NFTs enable direct sales to fans, ensuring artists retain a larger portion of their earnings. Programmable royalties on NFTs also facilitate ongoing revenue whenever the digital asset is resold.

NFTs also provide transparency and verifiable ownership, ensuring fair royalty distribution and clarifying rights management. This transparency builds trust and fosters a sense of true ownership among fans.

Furthermore, NFTs democratize music distribution by empowering independent artists to reach audiences directly, bypassing traditional gatekeepers like record labels.

The musician Grimes made headlines in 2021 with her highly notable and successful NFT sales. Her “War Nymph” NFT collection, featuring digital artworks synchronized with her music, generated approximately $6 million in revenue on Nifty Gateway. Notably, a one-of-one music video from the collection fetched nearly $400,000, showcasing the immense value and demand for music in the NFT space.

Newborn 4 from War Nymph Collection Vol 1.

Soundwork is a decentralized platform that seeks to revolutionize music production and redefine the music industry’s supply chain. Using blockchain tech and AI, Soundwork introduces a unique ecosystem that incentivizes music producers, beat makers, recording artists, and enthusiasts.

At the core of Soundwork is the concept of trackable ownership, ensuring proof of ownership for creators. This innovative approach, coupled with reward mechanisms, empowers creators to track their sounds wherever they are utilized, providing transparency and fair compensation.

Soundwork extends beyond creators, welcoming music lovers, fans, developers, and curious individuals into its community. Through applications developed on top of the Soundwork Marketplace, such as the flagship AI-powered music-making app, users can interact with sounds minted on the platform.

Soundwork gives creators broader exposure and also introduces an engaging element to music creation, making it enjoyable for all.

The Current State of the Music Industry

The current state of the music industry is characterized by significant growth driven primarily by streaming services. With a projected worth of $30.7 billion in 2024 and an estimated growth rate exceeding 8.5% to reach $45.65 billion by 2029, according to Mordor Intelligence. Streaming platforms like Spotify, Apple Music, and Amazon Music are key contributors to this expansion. Factors such as internet penetration and mobile device usage continue to fuel the adoption of streaming services.

Mordor Intelligence Research & Advisory. (2024, February). Music Market Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029). Mordor Intelligence.

However, some challenges persist, particularly regarding streaming payouts for artists. Ensuring proper rights management and combating piracy remain ongoing concerns in the digital era.

How Soundwork Leverages NFTs

Soundwork operates through the Soundwork NFT Standard (called SNFTs) a pivotal tool integrating blockchain technology with music tech. SNFT empowers musicians to create unique sonic landscapes like sounds and beats, immortalizing them as NFTs. The platform categorizes Sound NFTs into individual sounds, packs (collections of sounds), elements (including MIDI files, effects, etc.), and tracks (full songs).

These NFTs are transferable and listable on the Sound Marketplace and other compatible platforms. Each NFT type has specific attributes, such as name, format, media files, tempo, genre, author details, collaborators, availability, and more, ensuring comprehensive ownership and transactional data.

The Soundwork Marketplace serves as a hub for buying, selling, and leasing music NFTs. Users can connect their wallets, create listings, set prices, participate in auctions, buy, make offers, manage offers, and claim revenue. This marketplace operates through a Smart Contract that facilitates secure transactions, licensing, and revenue sharing among creators and collaborators.

Soundwork’s Marketplace

Soundwork also offers an AI Music-Maker app for creating music on iOS, web, and Android devices. The app supports sound selection, modification, sequencing, mixing, and NFT minting, enabling users to craft full tracks ready for the Sound Marketplace.

The SOUND Token, a central driver for incentives, drives governance, utility, and marketplace functions within the Soundwork ecosystem.

The Potential Impact of Soundwork and NFTs

The potential impact of Soundwork spans across multiple facets, promising a transformative shift in the music industry’s dynamics for artists, fans, and the industry as a whole.

For Artists, the impact is profound. NFTs offer a pathway to fairer compensation by enabling direct sales to fans, bypassing traditional intermediaries like streaming services and record labels. This direct connection also translates into sustainable revenue streams, as NFTs can incorporate royalty structures, ensuring artists earn a percentage from secondary sales. Additionally, exclusive content bundled with NFTs deepens fan engagement, fostering a stronger bond between artists and their audiences.

Moreover, independent artists benefit from the democratization of distribution, bypassing gatekeepers to reach a global audience.

For Fans, music NFTs bring about a paradigm shift. Fans can directly support their favorite artists through NFT purchases, gaining unique ownership of scarce digital assets that represent the artist’s work. This ownership extends to exclusive benefits such as access to private content, communities, or even participation in creative decisions.

NFTs can also introduce new ways to experience music, with offerings like virtual concerts and merchandise tie-ins.

On a broader scale, the music industry stands to gain significantly from the adoption of music NFTs. These digital assets create new revenue streams for artists, labels, and platforms involved in NFT sales. NFTs ensure increased transparency, enhancing rights management and royalty distribution. Furthermore, the NFT space fosters a more interactive approach to fan engagement, leading to the discovery of new artists and a more diverse musical landscape.

In conclusion, Soundwork is set to transform the music industry’s traditional supply chain. Soundwork empowers music creators to receive their rightful earnings and recognition by utilizing NFTs to ensure trackable ownership and fair compensation. As Soundwork continues to innovate within this space, it stands on the brink of setting a new standard in the music industry, promising a more equitable and transparent model for artists and fans alike.

Article written by: Jonathan Ganor

* Sources: Mordor Intelligence Research & Advisory. (2024, February)