Blockchain technology isn’t new, but it has yet to be accepted into the mainstream. Most people are aware of bitcoin and other cryptocurrencies, but we still use cards and cash to pay for goods and services, for the most part, at least. In fact, blockchain is usually only talked about in the context of financial services, whereas it has applications in numerous areas, including the music industry.
What is Blockchain?
You may already be familiar with a bitcoin casino USA, but to understand how blockchain will impact the music industry, we need to dig a little deeper.
Blockchain is a peer-to-peer, distributed ledger technology. Data is stored on servers all over the world, and no one person has control of the network. Anyone can update the ledger in real-time, and all transactions made via the ledger are transparent, which makes it very secure. Blockchain offers a new way of sharing information, which makes it extremely exciting.
How is blockchain shaking things up? Let’s find out.
Removing the Middlemen
The music industry has traditionally been dominated by a few big players. Before the advent of streaming services like Spotify and Soundcloud, music executives held all the power and artists had no choice but to work with them.
There are now blockchain-based streaming platforms, which remove the intermediary and let artists take control of their music. Platforms like Opus provide a P2P network filesharing service where fans and artists can upload music and share it with other users of the platform. Payments are made using cryptocurrency and revenue is generated by ads shown to freemium users. Smart contracts ensure royalties are distributed fairly and artists receive the bulk of the payments, rather than a huge chunk being siphoned off by record labels.
Dealing Directly with Fans
By using blockchain platforms, artists can deal directly with fans and be in control of their own destiny. Artists can upload music and earn 100% of the royalties. They can also split the royalties with other collaborators if they choose. It’s a simple process.
Collaboration Is Easier
It’s not always easy for artists to sample each other’s work and collaborate on music. There is such a thing as copyright, which protects artists’ intellectual property. Nobody is disputing the value of copyright law, but it can make collaborations much more complicated and headache-inducing.
Blockchain music platforms offer an easier way to license music and encourage collaboration. K-Tune uses blockchain technology to encourage artists to contribute to the K-Pop phenomenon. Profit-sharing is done fairly, which is a major incentive for artists to team up and sell their work to the big labels.
There are also projects backed by blockchain that reward music fans with exclusive content and rewards tokens. This type of incentive scheme encourages fans to curate their own playlists and engage with their favorite artists. It’s even attracting the attention of music giants such as Sony and Warner Music.
Blockchain has the potential to turn the music industry on its head. So far, these changes look like a win-win for artists everywhere.