Blockchain technology is part of what makes up Web 3.0. Brad Chandler, director of the UW-Madison Nicholas Center for Corporate Finance and Investment Banking, said the complex tech as an internet ledger or recording device that keeps a database of digital purchases.
The purchases are typically made with cryptocurrencies, like Bitcoin.
The database is maintained by a group of computer users, he said. But no individual or company owns the database, Chandler explained, adding there are no permissions associated with what’s being bought and sold.
Digital assets
On LÜM’s new platform, artists will be able sell digital assets to fans in the form of “non fungible tokens.”
Using the blockchain, they will be able to keep track of who owns the token, Fergus said.
Non fungible tokens, a recently trending topic in the tech community, can be anything digital, like a drawing, a song or even certain items in video games, Chandler explained. The tokens can sell anywhere from $10 to millions, he said, adding that no one can replicate them once made.
“Everyone is acting like their own record label,” Fergus said of how tokens apply to the LÜM. “Access passes give fans the rights to collectives (tokens) the artist drops.”
