Blockchain technology is taking all the power from intermediaries and shifting it back to artists by tipping the musical industry’s balance. Blockchain technology is powerful enough to raise financial inclusion and transform many people’s lives across the globe, especially in countries such as emerging ones where this is needed the most.
Many people recognize blockchain technology’s overall potential, but many bitcoin critics believe that blockchain technology is limited to the financial industry.
The distributed ledger system was generated alongside Bitcoin. It has a strong use case in the realm of assets and currency. Money can be transferred digitally within any duplication risk or middleman because the ownership is probable and immutable. Similar applications can be translated into several other industries besides finance. Bitcoin is not the only cryptocurrency that can be put on a balance sheet. For financial statements, all cryptocurrencies can be recorded.
In this case, the music industry that has gotten dominated by gatekeepers will go under the microscope for a long time. The arrival of the internet, followed by many streaming platforms like Spotify, Soundcloud, and Napster, changed this to the extent that now blockchain technology seems like the next step for shifting the power back to listeners and creators.
Blockchain technology, royalties, and streaming:
The main question is that how is blockchain transforming the music industry? The most noticeable effect of blockchain technology is that it has helped remove middlemen from the streaming and music sales process. Streaming platforms have played their part in changing the way music is consumed. They have made it more accessible to the listeners and have created a different level of intermediation between fans and artists.
The music streaming industry has improved considerably as it is now providing a user-friendly and cost-effective substitute for piracy. It’s also allowing artists to get royalties for all the work they do. However, with this transformation, there are undeniable discrepancies when it comes to the distribution of royalties. The discrepancy regarding payment is because of a plethora of factors. That includes the country an artist lives in and the artist’s music genre. Services like China’s AliMusic are localized, and they help resolve such issues on a more geographical level. The royalty’s distribution will likely remain skewed, and only a few artists will dominate the market.
It’s impossible to address the skewed distribution fully, but steps can be taken to improve emerging artists’ conditions. Consequently, the market will become more diverse, and it will help shift the control held by platforms and labels that influence which music the public gets to hear.
Music streaming platforms based on blockchain are putting effort into tackling this issue. For example, opus leverages two distinct peer-to-peer networks to remove the middlemen entirely and provide a completely decentralized streaming platform. Opus also uses the Etherum network like a payment layer. By using smart contracts, opus allows artists to get direct payment on every song purchase. This suggests that the royalties and the content are distributed independently. With this system, the artists can retain all the payments made by ads and premium users. Most of the revenue comes from ads.
Platforms like eMusic, Mediachain, and Musiclife focus on the issue regarding royalties as well. They also integrate similar technology to offer independent artists higher revenue. Blockchain technology is becoming a streamlined and easy way for independent artists to handle other industry facets. Smaller artists should maintain high legal and financial literacy levels to secure their financial stability because they are small-scale and have low financial independence.
A company based in New York, called ‘Ujo,” offers a decentralized database of music ownership in which artists can upload all their work and keep everything from their sales without paying any fees. They can split payments with collaborators automatically. The open music initiative also makes use of blockchain technology to identify the music rights holders. Ujo lets its users sell digital badges that can support the artist. These badges also act like collectible items. That has become a popular application for nonfungible tokens. Users can also tip the artists they love directly.
Artists want an easy way for other people to collaborate and license their music. A blockchain-empowered payments layers and rights could offer the means for this.
A start-up based in Luxembourg called “ANote Music” announced that it would launch a platform based on blockchain that will provide artists with a new method of accessing capital by allowing them to invest in royalties. The listeners can buy and trade music royalty shares to capitalize on their musical insight. They aim to create a stock-exchange platform where music investments can take place.
Rewarding the fans:
Projects that are backed by blockchain create monetary incentives for fans of music. That makes the experience more rewarding and interactive. The goal is to create such avenues where the music fans can engage with the musicians differently.
Blockchain’s future in the music industry:
Blockchain technology has started making progress in shifting the revenue and control back into the hands of the artists. There is still room for more growth, and artists can make higher earnings. Listeners can also enjoy the incentives coming from such decentralized platforms. These improved incentives for fans are artists help to incorporate blockchain in the music industry. The artists can move towards more refined and modern systems.
Sumcoin is a cryptographic blockchain that provides proof of work algorithm, and it’s a stable index coin. While using this, you can ensure security and high-speed payments. Sumcoin has been used for all the purposes listed above. For all kinds of direct payments, Sumcoin is a suitable option.
Here is how blockchain is overshadowing the music industry, and is all set to change the tune. Here is what you need to know.