How blockchain solves several industry problems
During this year, we’ve seen a massive increase in blockchain technology and everything around it, from NFTs and cryptocurrencies to decentralized markets, tech companies and more. Although the technology has been around for over a decade, this exciting new digital world is increasingly accepted by the mainstream, and it is safe to say that blockchain technology undoubtedly has the potential to disrupt the industry. music for good, in the years to come.
Blockchain is a decentralized data structure that contains records, including digital transactions. You may have heard of NFTs amid the recent media frenzy that followed. Beeple’s $ 69 Million Sale of his NFT, which made international headlines.
When it comes to NFTs, blockchain comes in handy as an ideal way to create proof of authenticity for digital content; If implemented correctly, however, this technology can help solve many problems within the music industry and make life easier for artists and fans alike.
Some of the biggest gaps in the music industry that blockchain technology can help correct, are low transparency (especially when it comes to metadata and copyright), minimal artist payments due to numerous middlemen, and lengthy royalty payment processes. Through smart contracts (automated programs on the blockchain), musicians could be paid for fractions of a dime every time a listener taps to play on one of their songs, allowing the royalty payment process to be performed. take place in seconds instead of several months. Unwanted third-party intermediaries will no longer be needed, leaving more money in the hands of artists, who can establish a direct seller-consumer relationship with their fans through blockchain technology. In terms of transparency, blockchain is a secure way to prove ownership on a specific piece of music, as well as confirming each person involved in its copyright. Plus, it can hand all streaming and fan activity data straight into the hands of artists, who now typically only have access to data to which their label, distributor, or streaming platforms give them access.
There are currently countless new blockchain-based technology companies that are working collectively to move the industry forward. Audius for example, is one of the most popular, a free and decentralized streaming platform that connects artists directly with their fans and ensures that artists receive royalties fairly and immediately through smart contracts. The fact that files uploaded to the site are not kept on Audius’ servers, but are saved on the blockchain, opens up endless possibilities for monetizing music that were technically impossible until now.
Open Music Initiative (OMI) on the other hand, is a non-profit organization, with members such as Soundcloud, Red Bull Media and Netflix, which uses blockchain to identify and fairly pay legitimate music rights holders, as well as to provide them with transparency. and more in-depth information about the data.
Additionally, the implementation of a global copyright database, which blockchain can offer, is more needed in the industry than ever before. This would solve many problems such as conflicting or incomplete recordings and allow content creators to have all elements of their musical works captured on a unified system.