The rise of non-fungible tokens (NFTs) has sparked a global cultural and technological shift, particularly within the creative industries. In 2021, NFT sales surged to $2.47 billion in the first half alone, according to CoinDesk — a clear signal that digital ownership is redefining how we value art, music, and collectibles. As blockchain technology continues to mature, NFTs are emerging as a powerful tool for creators and collectors alike, especially in regions like Taiwan where digital innovation meets artistic expression.
Understanding NFTs and Blockchain Technology
At its core, an NFT (Non-Fungible Token) is a unique digital asset verified using blockchain technology. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and interchangeable, each NFT is one-of-a-kind. This uniqueness stems from its indivisible and non-interchangeable nature, making it ideal for representing ownership of digital items like artwork, music, videos, and virtual collectibles.
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Blockchain serves as the foundation for NFTs — a decentralized ledger that securely records transactions across multiple computers. Each block contains a cryptographic link to the previous one, ensuring transparency and immutability. This means once an NFT is minted, its history — including creation, ownership, and transfers — can be permanently verified.
While owning an NFT grants possession of a unique token linked to a digital file, it does not automatically confer copyright or full intellectual property rights. As legal expert Lin Hong-yu points out, most buyers acquire what’s more accurately described as “digital asset naming rights” rather than legal ownership of the work itself.
The Rise of Music NFTs: A New Era for Artists
One of the most exciting applications of NFTs has been in the music industry. With traditional revenue streams disrupted by the pandemic, artists have turned to NFTs as both a financial lifeline and a way to deepen fan engagement.
Taiwanese singer Wu Jo-yuan launched a limited-edition NFT single in early 2021, offering only 20 copies priced at NT$330 each. Today, those same NFTs sell for over NT$6,500 — nearly a 20-fold increase. Beyond speculation, these tokens offer exclusive benefits: early access to unreleased tracks, backstage passes, or even VIP concert tickets.
Chen Tai-ku, founder of music NFT platform Fansi, explains that NFTs allow artists to embed special privileges directly into their digital works. “It’s not just about selling music,” he says. “It’s about creating experiences and strengthening the bond between creators and supporters.”
For DJs and independent musicians who rely on live performances, NFTs provide a sustainable alternative. Instead of earning fractions of a cent per stream on platforms like Spotify, artists can receive direct compensation through primary sales and earn royalties on secondary market transactions — a game-changer for creative sustainability.
NFTs in Visual Art: Bridging Physical and Digital Worlds
Visual artists are also embracing NFTs to reclaim control over their work and monetize digital creations that were once easily copied and shared without credit.
Echo Band frontman Wu Po-tsang released a limited series of 200 NFTs titled Ownership of Knowledge in 2019. For him, blockchain wasn’t just a tech trend — it was a philosophical statement about authenticity and value in the digital age. “NFTs transform passive consumption into active participation,” Wu says. “They open up new ways to interact with fans beyond concerts or physical albums.”
Curators and galleries are taking notice. The Taipei New Art Expo introduced an NFT art preview exhibition at Songshan Cultural and Creative Park in April 2021 — one of Taiwan’s first major institutional forays into crypto art. While displayed as printed visuals or digital screens, each piece was backed by an authentic NFT token stored on the blockchain.
Expo executive director Cheng Chun-yuan emphasizes that while presentation formats vary, the true innovation lies in verifiable provenance. “An NFT ensures the artwork cannot be altered or forged,” he explains. “That trust factor unlocks new possibilities — from fractional ownership to cross-border collecting.”
Investment Potential and Market Risks
As NFTs gain popularity, many buyers view them not just as collectibles but as investment assets. Enthusiasts like collector Chu Wei-chi have built portfolios featuring high-profile projects such as MekaVerse (robot-themed avatars) and Cool Cats (algorithmically generated cartoon felines).
However, experts caution against speculative frenzy. “Every emerging market experiences bubbles,” says Lin Hong-yu. “But bubbles aren’t inherently bad — they attract attention and capital. The key is education.”
Chu advises potential investors to assess both artistic merit and project viability. “If you're investing, research the team, roadmap, and community strength,” she says. “If you're collecting for passion, focus on whether the work resonates with you.”
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Legal Challenges and the Need for Regulation
Despite rapid growth, the NFT space faces significant legal uncertainties — particularly around intellectual property rights.
Lin Hong-yu warns that unauthorized use of copyrighted material remains widespread. For example, some creators have minted Pokémon characters as NFTs without Nintendo’s permission — a clear violation of copyright law. “Selling someone else’s IP globally isn’t fair use,” he stresses.
He advocates for Taiwan to follow U.S. states like Wyoming and Arizona in enacting a Digital Asset Protection Act. Such legislation would clarify ownership rights, protect consumers, and foster responsible innovation.
Future Outlook: Creativity Meets Technology
While only 5% of NFT transactions involved art in early 2020, that figure is rising rapidly as platforms improve accessibility and user experience. According to Cheng Chun-yuan, success ultimately hinges on two factors: originality and emotional resonance.
“NFTs are just a medium,” he says. “What matters most is whether the artwork moves people.”
As blockchain evolves, so too will the applications of NFTs — from gaming items and fashion wearables to real estate deeds and identity verification. But for now, the spotlight remains on creative expression.
Frequently Asked Questions (FAQ)
Q: What exactly do I own when I buy an NFT?
A: You own a unique token verifying your possession of a specific digital file. However, this rarely includes copyright or reproduction rights unless explicitly stated.
Q: Can I make money from buying NFTs?
A: Yes, some NFTs appreciate in value due to scarcity or demand. However, prices can be volatile, so treat investments cautiously and do thorough research.
Q: Are NFTs bad for the environment?
A: Early blockchains like Ethereum used energy-intensive mining methods, but recent upgrades have significantly reduced environmental impact through proof-of-stake mechanisms.
Q: How do I start collecting NFTs?
A: Begin by setting up a digital wallet, purchasing cryptocurrency (like ETH), and exploring reputable marketplaces where you can browse and bid on NFTs.
Q: Can any artist create an NFT?
A: Yes — any creator can mint an NFT using online platforms. The barrier to entry is low, but standing out requires originality, marketing savvy, and community engagement.
Q: Is there a risk of scams in the NFT space?
A: Unfortunately, yes. Fake collections, phishing sites, and rug pulls exist. Always verify project legitimacy before spending funds.
With growing adoption across music, visual arts, and beyond, NFTs represent more than a passing fad — they signal a fundamental shift in how we create, share, and value digital content.