Napster bets on NFTs and cryptocurrencies to make a comeback

Napster, the pioneer of P2P music sharing, is beginning to transition to non-fungible tokens (NFTs), blockchain and cryptocurrencies. Bought by two companies specializing in Web3, will the platform return to center stage?

Napster, one of the pioneers of peer-to-peer music sharing, has just announced its entry into the world of cryptocurrencies and non-fungible tokens (NFT). Napster transformed into a music streaming platform a few years ago and is committed to “apply Web3 technology to his existing business”† As a reminder, Web3 evokes a decentralized version of the internet thanks to blockchain technology. It is opposed to Web2, whose infrastructures are centralized.

The company describes its plans in detail in a document called Litepaper V1. Title Naster 3.0the initiative aims “to improve the way music creators, rights holders and fans can communicate with each other”

The announcement follows in the acquisition of Napster last May. The brand has been acquired by hivemindan investment fund specializing in cryptocurrencies, and algorithm, an open-source software company developing the blockchain of the same name. Napster has been going through several groups lately. After several years under the Rhapsody fold, the platform had already been sold to Melody VR in 2020.

Napster announces the arrival of its own cryptocurrency

To achieve this, Napster is launching own cryptocurrency in the near future. Soberly dubbed the “NAPSTER”, the token will be deployed on the Algorand blockchain. In its Litepaper V1, the platform presents Algorand as the only blockchain infrastructure with a negative carbon footprint”. Napster has not pushed forward an implementation date.

As explained in the document, Napster plans to take advantage of all the opportunities the blockchain offers to… enable exchange between artists and their fans† The company is also discussing the arrival of NFTs on its platform.

“People who make music, those who listen to it, and those who own the intellectual property already rely heavily on technology. Web3 offers an opportunity to deepen, expand and improve the music ecosystem”explains Emmy Lovell, interim CEO of Napster, in a press release.

In particular, Napster envisions a system where the holders of a non-fungible token can collaborate with artists, receive exclusive content or discover live performances. For their part, the rights holders will be guaranteed that the music is safe from pirates.

Some of the features added to the service include: a digital wallet intended to store the NAPSTER cryptocurrency. The token allows the purchase of services, content in the form of NFTs or the payment of premium features

Also Read: Ironically, Bill Gates Curbs the NFTs and the Bored Ape Yacht Club

Napster’s umpteenth revival

Since its founding in 1999, Napster has reinvented itself several times. Initially it was the first P2P software uniting millions of users worldwide. Put to death by the record companies, Napster disappeared in 2001, after several years of setbacks in the American justice system.

In 2002, Roxio, an American company, acquired the brand for a modest $5 million. The company hoped to capitalize on Napster’s fame for its online music store. It offered a monthly subscription that allowed for an unlimited number of songs to be downloaded.

The platform did not have the expected success. RealNetworks, which offers the Rhapsody subscription service, eventually bought Napster in 2011. After becoming a music streaming application like any other, Napster couldn’t hold its own against competitors like Spotify or Apple Music.

Napster, Limewire… the P2P pioneers go for Web3

The announcement comes in a context of crisis. In recent weeks, a wind of panic has been blowing in the market for cryptocurrencies and non-replaceable tokens. Bitcoin mirroring, most digital currencies in the ecosystem have lost value. Total market capitalization shrank by about $900 billion.

On the NFT side, the number of trades has collapsed. This also applies to the prices of digital works, including the most popular collections. It is rumored that several cryptocurrency exchange platforms are even on the verge of bankruptcy.

Confident in Web3’s future, Hivemind estimated when it took over Napster that volatile market and uncertain times often present exciting opportunities”† The New York company is also increasing investment in the field. For example, Hivemind has invested in Limewire, a flagship free P2P software from the 2000s, to turn it into an NFT exchange platform. Mirroring Napster 3.0, Limewire’s new iteration, aims to better connect artists with their fans.

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