Twitter Inc. (NYSE:TWTR) co-founder and Block Inc. (NYSE:SQ) CEO Jack Dorsey said that while non fungible tokens (NFTs) are trying to empower music artists, they are the “wrong answer” as they are not built on the best foundation.
What Happened: “The format that is interesting, this is where I think the spirit of NFTs, there’s something. It’s the right question to ask, we currently have the wrong answers,” Dorsey said during an interview with MicroStrategy Inc. (NASDAQ:MSTR) CEO Michael Saylor at the “Bitcoin for Corporations 2022” conference on Tuesday.
Dorsey said that Tidal — the music streaming service acquired by Square last year — is trying to empower music artists to participate in the economy and give them control of their destiny by creating ecosystems of tools for them. This, according to him, would help it distinguish itself from similar services offered by Apple Inc. (NASDAQ:AAPL) and Spotify Inc. (NYSE:SPOT).
Block has commerce sites that can be integrated in Tidal, Dorsey added, noting that a typical artist gets more income from merchandise and touring compared to streaming revenue.
Dorsey noted how people typically understand Bitcoin to be comprising of two layers — a base one and Lightning Network as Layer 2 — but there can be more layers on the network, The Block CEO suggested his company is exploring such use cases of Bitcoin through technological advancements.
See Also: How To Buy Ethereum (ETH)
Why It Matters: NFTs, blockchain-based tokenization of collectible items or art pieces, allow users to own digital assets like retail estate, art, digital sneakers, and video moments. NFTs — typically built using Ethereum — are the hottest cryptocurrency trend since last year.
Dorsey’s comments come as more artists jump on the NFT bandwagon. Several prominent figures in the music industry have made high-value NFT purchases and even released their own collections.
Musician Justin Bieber recently became one of the latest celebrities to purchase a Bored Ape Yacht Club NFT for $1.3 million.
Warner Music Group said earlier this week it is partnering with OneOf, a NFT platform backed by Quincy Jones, to create exclusive NFTs for artists across the WMG portfolio.
Price Action: Ethereum is down 3.7% during the past 24 hours, trading at $2,651.05 at press time.
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