It is also interesting to see that a community of developers is now using this framework to improve or create different implementations of the standard. On that note, we recently had the opportunity to mentor the team at Nusic, a DeFi startup creating groundbreaking work in the music industry. In brief, Nusic provides a decentralized infrastructure for music creators, giving them the opportunity to unlock new streams of revenue and ultimately increase monetization through NFT bonds.
In 2021, Nusic won the Grand Prize at the Chainlink Fall Hackathon, yet even though the project received critical acclaim from the DeFi ecosystem, they also received much blowback from potential investors regarding their proposed NFT bonds. It turns out that, after taking the Howey Test (which classifies whether or not transactions are considered investment contracts), their NFTs actually qualify as financial instruments, rather than utility tokens.
As their digital assets were now deemed securities, Nusic decided to look into permissioned tokens and the possibility of creating permissioned NFTs as their product. They eventually stumbled upon the ERC3643 standard and reached out to us on how they could make this happen. After some passionate discussions with the Nusic team about their intention to make a non-fungible version of the ERC3643, we decided to assist them in adopting, modifying, and implementing this standard for their music NFTs to meet their needs.
For this to work, we had to transpose the onchain permissioning layer of ERC3643 to NFTs which, by default, ensures compliant transfers and eligibility of each single token owner, thanks to the use of digital identities (ONCHAINID.com). It was decided to name this new version of the standard ERC3643N (“N” for non-fungible). It is now published and available for the community.
Musicians can now directly monetize their work through the Nusic application in an innovative, fully decentralized, and compliant way.
Their work on the ERC3643N made Nusic winners of another Chainlink Hackathon, taking home two prizes (in the NFTs & Gaming, and Filecoin categories) from this year’s Spring Edition.
We are very happy with the work accomplished with Nusic and extremely proud that the ERC3643 is spearheading itself as an easily accessible market solution across different industries using blockchain. As word continues to spread, it is becoming apparent that market standard permissioned tokens will be used in broader scenarios more often than before. We are looking forward to seeing more innovative use cases using this solution.
In the meantime, we would like to congratulate Nusic again on their achievements. The success from our work together is music to our ears!
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