Napster, the pioneer of P2P music sharing, begins its transition to non-fungible tokens (NFTs), blockchain and cryptocurrencies. Bought by two firms 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 foray into the world of cryptocurrencies and non-fungible tokens (NFT). Converted into a music streaming platform a few years ago, Napster is committed to “applying Web3 technology to its 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 at length in a document dubbed Litepaper V1. Title Naster 3.0the initiative aims to “improve the way music creators, rights holders and fans can interact”.
The announcement follows in the takeover of Napster last May. The brand was acquired by Hivemindan investment fund specializing in cryptocurrencies, and Algorand, an open-source software company that develops the blockchain of the same name. Napster has passed through the hands of 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 will launch own cryptocurrency in the near future. Soberly called 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”. No deployment date has been advanced by Napster.
As explained in the document, Napster plans to take advantage of all the possibilities offered by the blockchain to facilitate exchanges between artists and their fans. The company also discusses the arrival of NFTs on its platform.
“People who make music, those who listen to it, and those who own its intellectual property already rely heavily on technology. Web3 offers a chance to deepen, expand and enhance the music ecosystem,” Emmy Lovell, interim CEO of Napster, said in a statement.
Napster notably imagines a system in which the holders of a non-fungible token will be able to collaborate with artists, receive exclusive content or discover live performances. For their part, rights holders will be guaranteed that the music will be safe from pirates.
Among the features that will be added to the service are: a digital wallet intended to store the NAPSTER cryptocurrency. The token will allow the purchase of services, content in the form of NFTs or the payment of premium features
Read also: Full of irony, Bill Gates curbs the NFTs and the Bored Ape Yacht Club
Napster’s umpteenth revival
Since its creation in 1999, Napster has reinvented itself several times. Initially it was the first P2P software to unite millions of users worldwide. Put to death by the record companies, Napster disappeared in 2001, after several years of setbacks with American justice.
In 2002, Roxio, an American company, acquired the brand for the modest sum of 5 million dollars. The company hoped to capitalize on Napster’s fame for its online music store. It offered monthly subscription which allowed to download an unlimited number of songs.
The platform did not meet with the expected success. RealNetworks, which offers the Rhapsody subscription service, ended up buying Napster in 2011. Having become a music streaming application like any other, Napster failed to hold its own against competitors such as Spotify or Apple Music.
Napster, Limewire… the P2P pioneers go Web3
The announcement comes in a context of crisis. For the past few weeks, a wind of panic has been blowing on the market for cryptocurrencies and non-fungible tokens. Mirroring Bitcoin, most digital currencies in the ecosystem have lost value. Total market capitalization contracted around $900 billion.
On the NFT side, the number of transactions has collapsed. This is also the case for 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 the future of Web3, Hivemind estimated when acquiring Napster that a “volatile market and uncertain times often bring exciting opportunities”. The New York company is also increasing investments in the field. Hivemind has for example invested in Limewire, a flagship free P2P software from the 2000s, to make it an NFT exchange platform. Mirroring Napster 3.0, the new iteration of Limewire aims to better connect artists to their fans.
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