Blockchain technology is part of what makes up Web 3.0. Brad Chandler, Director of UW-Madison Nicholas Center for Corporate Finance and Investment Banking, said the complex technology as an Internet ledger or recording device that maintains a database of digital purchases.
Purchases are typically made with cryptocurrencies, such as Bitcoin.
The database is managed by a group of computer users, he said. But no person or company owns the database, Chandler explained, adding that there is no authorization associated with what is bought and sold.
On LÜM’s new platform, artists will be able to sell digital assets to fans in the form of “non-fungible tokens”.
Using the blockchain, they will be able to find out who owns the token, Fergus said.
Non-fungible tokens, a recent hot topic in the tech community, can be anything digital, like a drawing, song, or even some video game element, Chandler explained. Tokens can sell for anywhere from 10 to millions of dollars, he said, adding that no one can duplicate them once created.
“Everyone acts like their own record company,” Fergus said of how the tokens are applied at LÜM. “Access passes give fans the rights to collectives (tokens) the artist drops.”