Square to study NFT use on the Tidal platform

The Square-owned subscription service for music, podcasts and streaming video, Tidal, will explore the use of non-fungible tokens (NFTs) on its platform. This was disclosed by Jack Dorsey and Jay-Z during a Twitter live stream, The Block reports.

\n\n\n\n

In their view, the instrument will allow artists to manage copyright more effectively. Jay-Z noted that, thanks to smart contracts, performers can set the payout amounts for sales of intellectual property themselves, without the need for labels and lawyers.

\n\n\n\n

The rapper cited an acquaintance who sold a painting for $2,500 in 1983. The work was recently resold for more than $100 million.

\n\n\n\n

“Neither his family nor those who participated [in the creation of the painting] received any profit. I simply don’t think that’s right. With these blockchains and smart contracts you can today write a contract for yourself to say: \”In any sale that occurs, I want to receive 10%, or 30%, or perhaps 50% from the first sale or 40% from the next.\” And it is written there, so everything is very transparent,” said Jay-Z.

\n\n\n\n

According to Dorsey, NFTs in art have the potential to do for art what Bitcoin did for payments. Both instruments remove the need to engage third parties.

\n\n\n\n

“I think that NFTs allow a critical look at how artists are compensated, and improving this is what we want to devote a lot of attention and time to in the future, just to ensure that we are exploring new ways to give artists the right tools to help them create,” said Dorsey.

\n\n\n\n

Jay-Z bought Tidal in early 2015 for $56 million. In 2020, Dorsey’s company was in talks to acquire the service to diversify its business.

\n\n\n\n

In March 2021, Square paid $297 million for a controlling stake in Tidal, in cash and securities. Jay-Z joined the board of directors of the payments company.

\n\n\n\n

Follow ForkLog news on Twitter!