The Nigerian entertainment industry has been growing in leaps and bounds, from the music to movie and every other sector you can think.

Depending on who you are discussing with, the problems inherent in this nascent industry always revolve around IP, funding or lack of government assistance.

Being the resilient beings they are, our entertainment practitioners have managed to do their thing with little or no funding from government or private investors.

Nollywood grew from zero to hero without any help from anyone, just the determination of the pioneer stakeholders to see their new baby grow. Of course, the Alaba marketers helped in no small way to make this happen, until iniquity was found in them.

Even the music industry has had to depend on the foresight of a few music labels to put themselves in the global stage.

Enter the blockchain revolution and the non-fungible token or NFT as a game changer. During the 2020 #Endsars protest in Nigeria, as the federal government cottoned on and blocked all the bank accounts used for funding the movement, the youths went underground, using cryptocurrencies that the government didn’t understand.

Cryptocurrency is a virtual currency that uses cryptography to secure and verify transactions as well as manage and control the creation of new currency units. It is not regulated by any governing authority and runs on blockchain technology. That’s why it’s decentralized.

So, what is a CRYPTO COIN or CRYPTO TOKEN?

A COIN operates on its blockchain, acts as digital money, does not move around as only the account balance changes and a coin denotes what you are capable of owning.

On the other hand, crypto TOKENS do not have their blockchain, but operate on other crypto coin blockchains, such as Ethereum. They rely on smart contracts and stand as assets, when a token is spent it physically moves from one place to another and it represents what you own.

NFTs and cryptocurrencies rely on the same blockchain technology, being both decentralized and regulated by the communities that run them. All of these are made possible because of the decentralized ledger format it uses, that is open for all to see, unlike the traditional financial system that is centralized and subject to change.

However, cryptocurrencies and NFTs are created and used for different purposes.

An NFT, or a Non-Fungible Token, is a digital or physical asset network (music, art, memes, fashion, etc) that’s associated with a unique cryptographic token existing within a specific blockchain. From collectible sports cards to memes, NFTs can represent any entity used to monetize any skill.

The key difference between NFTs and cryptocurrency is fungibility.

A fungible object can be replaced by an identical item at the same value. Cryptocurrencies are fungible, for example. One Bitcoin can be exchanged for one other bitcoin.
NFTs, on the other hand, cannot be changed for each other as they are unique representations of real-world assets.

NFTs create one-of-a-kind tokens that can show ownership and transfer rights over unique digital goods.
This is why an NFT is thought of as an “asset” as opposed to a currency.

So, what hope does the NFT portray for the entertainment industry in Nigeria?

How would you as a musician or film maker like to sell your work using NFT? Your song or movie is a unique property, non-fungible asset that you can exchange for a fee, after mining it on the ledger and getting a smart contract. You can decide to sell to only ten thousand (10,000) fans that get a smart contract for this premium and unique content not open to everyone.

The NFT token these ten thousand fans have is proof of ownership and not copyright, so the IP still resides with you the owner.

If these fans decide tomorrow to sell their token your smart contract automatically cuts out your royalty from those sales.

Video gaming is going NFT with the players now able to earn money from playing.

There are likely possibilities of crowdfunding as we know it today becoming embedded in NFT too, meaning that you can now use your NFT tokens to raise funding for your films, music, games, etc.

But there are dos and donts if we are ready for the conversation.

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