Blockchain technology is part of what constitutes Web 3.0. Brad Chandler, director of the UW-Madison Nicholas Center for Corporate Finance and Investment Banking, said the complex technology was an internet ledger or recording device that maintains a database of digital purchases.
Purchases are usually made with cryptocurrencies, such as Bitcoin.
The database is maintained by a group of computer users, he said. But no individual 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”.
By using the blockchain, they will be able to track who owns the token, Fergus said.
Non-fungible tokens, a recent trending topic in the tech community, can be anything digital, like a design, song, or even certain video game items, Chandler explained. The tokens can sell for anywhere from $10 to millions, he said, adding that no one can replicate them once made.
“Everyone acts like their own label,” Fergus said of how the tokens apply to LÜM. “Passes give fans the rights to the collectives (tokens) the artist drops.”