Over the years, blockchain technology has proven its usefulness in various industries. However, some sectors seem to have escaped the new technological advent. One of them is the music industry, a multi-billion dollar market that could benefit significantly from decentralized public ledgers. Read on to find out how music and the blockchain could successfully merge!
What is the blockchain?
In 2008, a mysterious person or group of people using the pseudonym Satoshi Nakamoto introduced blockchain technology in the White Paper on Bitcoins. Since then, the document has been considered by many to be one of the most influential pieces in the history of cryptocurrencies.
blockchain part of its name derives from a fundamental concept: blocks. In cryptography, a block is a data stream that can contain encrypted messages. Also, you can verify its integrity without revealing any information other than its value.
Each block in the Bitcoin blockchain typically contains two important things:
1) Transaction metadata (for example, sender, recipient, and transaction amount)
2) Proof of work (i.e. the computational effort required to produce)
blockchain is distributed, which means that no computer controls its existence or use. For example, no single institution can remove user coins or manipulate financial activity in the general ledger. Meanwhile, users maintain full control over their private keys and addresses. In this way, they can transfer their funds at will without the approval of a centralized authority.
Even if multiple computers fail, the blockchain survives because its data remains on multiple nodes around the world. This decentralized network cannot run on a single node because it does not have enough storage space to support it. Instead, all nodes function as copies of the blockchain, validating their consistency every few minutes.
Also read Walmart’s payment future may change as it looks to hire a crypto expert
How will blockchain change the music industry?
In music, people often refer to blockchain as an artist rights database or a digital rights management (DRM) system.
Why would an artist want to upload their intellectual property to a public platform?
Why should they choose one blockchain over another?
And why might they need their own blockchain in addition to any other existing one?
When artists answer these questions, they begin to understand that blockchain offers many additional opportunities for musicians. As a result, they begin to use them.
se opportunities include licensing songs directly to users rather than going through a third-party service like Spotify. Also, the blockchain allows them to charge micropayments for streaming rather than having their song streamed for free on other services. Finally, this technology allows them to verify fan tribute payments as proof of play versus hearing test.
Advantages of blockchain for the music industry
Blockchain opens up many possibilities for analysis, marketing strategies and the creation of a fan base. It also allows them to monetize multiple streams, such as crowdfunding concerts or album and song presales.
Other benefits of blockchain in the music industry include:
Eradicate the role of intermediaries
music industry has been in a period of change for years. For example, album sales have fallen dramatically. Meanwhile, streaming services like Spotify and Apple Music continue to grow excessively. Additionally, fans prefer to go online to find new artists, reducing performance and concert income. Finally, the major labels are profiting at the expense of musicians from higher contracts and royalties.
Read Also Former CFTC Chairman Giancarlo Leaves BlockFi Board As States Crack Down On Company
On the other hand, the blockchain aims to change the status quo by eliminating these guardians once and for all. Through this technology, any musician can launch an ICO and allow people to buy digital tokens that represent songs or albums. Also, they could earn passive income every time users play one of their songs. And all of this would happen at no additional cost to record companies, operators, or streaming services.
Easier collaborations between artists
Blockchain facilitates music collaboration. Before blockchain, artists or songwriters often had to rely on third parties, such as record labels, to publish their work. In addition, this practice required the payment of high taxes and the waiver of part of their rights.
Now musicians can autonomously upload their work to a decentralized platform using smart contracts. se contracts automatically transfer payments directly to them when their work is sold without third party involvement.
Smart contracts also avoid potential problems like late payments. Simply put, blockchain makes it easier for musicians to share content more directly and make money faster. Additionally, artists are free to collaborate with whomever they want without the approval of their managers or producers. Blockchain offers them total freedom of association.
More incentives for creators
Blockchain offers incentive schemes to music artists. For example, this technology allows them to license content to fans and receive payments in real time. By contrast, streaming services pay musicians pennies every time users listen to their music. All of this could change, as blockchain can provide artists with substantially higher income from gambling practices to win. More importantly, this could motivate musicians to create higher quality content.
Also Read GET Your Ticket Provider Protocol Partner To Bring NFT To Masses
Blockchain is proving to be a successful monetization medium for many industries. Fortunately, the music industry is slowly approaching this technology. As more and more artists use blockchain to reach their fans, they access greater sources of income and new creative freedom. We can only hope that this fusion of decentralized musicians and registers comes as soon as possible.