If you are someone who is an artist or just a massive fan of music, you might be curious to know how blockchain technology can revolutionise the entire music industry. The whole of the music industry is witnessing an abundance of applications that are currently into development stages utilising the blockchain technology.
As various industries are leveraging blockchain into use, to reduce inability and increase profits. The music industry has a lot to gain from the expertise of blockchain technology.
Before jumping out to the use cases of blockchain in the music industry, here is what blockchain is and how it works.
The blockchain is a growing list of records which are called as blocks; cryptography helps in linking and securing these blocks. Blocks include a cryptographic hash of the previous block, transaction data and a timestamp.
The blockchain is an open and a distributed ledger that stores transactions between two parties accurately neatly and permanently. The blockchain technology is regulated by a peer-to-peer network jointly following protocols to validate new blocks.
In 2008, when Bitcoin was invented, it also introduced to us the blockchain technology; although the practical implementation was made in 2009.
The current e-cash protocols are based on the model created by David Chaum in the 1980s; where the concept of electronic cash was first introduced. We’ve listed blockchain use cases that are to benefit both the musicians and producers at the same time.
Why is there a need for Blockchain Technology in Music Industry?
Let’s just say that listening to music is way more accessible than it was a decade ago. As a user, you used to pay for apps that have your sounds on the cloud on a monthly basis; then the money is passed on to the artist. If this is what you thought, then it doesn’t happen like this. The blockchain technology has a role to play here by seamlessly passing money to the artists.
The global music industry is 15.7 billion, with music lovers thoroughly appreciating the digitisation of this industry. The revenue of music labels and artist’s royalties is eaten over by the music piracy, copied and the shared contents. There is also a significant lack in the right management system, leading to loss of revenue to the artist.
By the time revenue reaches out the artist, it takes more than two years. There is also a lack of access to real-time data of digital sales, if available can be utilized in strategizing marketing campaigns.
Although digital streaming services such as Spotify, Apple Music and Google Play Music have a massive volume of transactions; artists only receive about 20 to 40 percent of these transactions.
This is where Blockchain comes into play as it maintains permanent records in a cryptographic form. The transactions take place across a peer-to-peer network, which is verified, computed and stored using an automated process. There is no requirement of any middlemen and intermediaries such as banks or a central authority.
Also read: Best Cryptocurrency wallets of 2018
The Blockchain Change
Blockchains are still infancy, meaning that they still have to prove their potentiality. Blockchain can bring in some changes in the creation in a digital rights database. The technology works identifying the copyright of a song and explains how the royalties need to be split across songwriters, performers, publishers and producers involved in the digital space.
To grasp the technology, it will take the artists and musicians to get on board. The barrier lies for the fans, as there are unknown aspects of the blockchain technology.
Here are a few advantages of blockchain for the music industry.
As Blockchain tracks payments and usage, artists receive more of independence to market their music. For independent and newer artists, blockchain eventually cuts down their costs.
It is up to the music banners to modify their business model as the blockchain technology can be at the center of major companies to move from more prominent corporations to musicians.
Sharing of royalty payments gets even more efficient with the help of transparency in the blockchain system. The technology would work as a music directory, involving the original music file connecting to rightful owners of the content.
The possibility of the system is holding the information, tracking the consumption and usage of the content on distinct platforms. As per the information collected, it releases reasonable payments to the rightful owners of the content.
The music industry is currently struggling with age-old structures which are failing to catch up with the present digital demands.
The utilization of blockchain in the music industry can undoubtedly build a health system that will benefit both the artists and producers.