Music, podcast, and streaming service Tidal, owned by payment company Square, will explore the possibility of using non-fungible tokens (NFT) on its platform. That was announced by Jack Dorsey and Jay-Z during a live broadcast on Twitter.
In their opinion, the tool will allow artists to manage copyright more efficiently. Jay-Z noted that thanks to smart contracts, performers can independently set the number of payments for the sale of intellectual property while doing so without labels and lawyers.
The rapper cited an example of an artist he knew who sold the painting for $ 2,500 in 1983. The piece was recently resold for over $ 100 million.
“Neither his family nor those who participated [in the creation of the picture] received any profit. I just don't think this is right. With these blockchains and smart contracts, today you can write a contract for yourself to say: “For any sale that happens, I want to get 10%, or 30%, or perhaps 50% of the first transaction or 40% of the next ”. And it's recorded there, so it's very transparent,” said Jay-Z.
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According to Dorsey, NFTs in the arts are capable of doing what bitcoin does in payments. Both tools eliminate the need to involve third parties.
“I think NFTs allow us to take a critical look at how artists are rewarded, and improving that is something we want to spend a lot of attention and time on in the future just to make sure we are exploring new ways to give artists the right tools that help them create, ”said Dorsey.
Jay-Z bought Tidal in early 2015 for $ 56 million. In 2020, Dorsey's company was in negotiations to acquire the service to diversify its activities.
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Recall that in March 2021, Square paid $ 297 million in cash and securities for a controlling stake in Tidal. Jay-Z joined the board of directors of the payment company.