Music Industry Blockchained
The “blockchainization” marches victoriously throughout the world, and there seems to be no shortage of industries that the blockchain can disrupt or improve. Modern music companies are sure to hate the streaming services. Those, in turn, do not like the data storages, and the artists and content creators dislike nearly everyone for making huge profits on their work and not giving them a fair cut.
The blockchain is right the long-term awaited tool that can make the difference. With so many past and present conflicts of interest, it seemed that no service or business model would be able to organize everything correctly so that everyone will be satisfied.
The recent advanced in blockchain technology development and implementation had shown the right direction for the investors and tech specialists from different areas to go hand in hand with the demand of the musical industry.
As it is known, the blockchain technology is backed by the distributed ledger which can check up and verify transaction without having to authorize any central node.
To make a long story short – the registry has no owner – it is distributed among all the nodes making up the network, and is accessible to everyone.
Information that is stored in the registry passes through a so-called cryptographic hashing algorithm, which makes it virtually irreversible and protects against unauthorized access. This means that users can exchange data, money, and anything valuable in any amount safely and secretly.
How exactly can the blockchain be applied to the music industry?
With the help of the blockchain, one could transform the processes of publication, monetization, and the relationship of artists with the fan communities.
Like in many other fields of work and industries, the advantage of blockchain usage is the ability to simplify the relationship between creators and consumers.
First of all, music could be published in the registry with a unique identifier and timestamp so that it will make the further changes impossible. This will help to solve a long-standing problem of digital content – downloading, copying and arbitrary modification. Each audio recording can store metadata about the owner and copyrights so that everyone can see it and check it. Thus, the fee for the use of content will be received by its creator only.
Moreover, this technology can bring about a revolution in the field of music monetization. At the heart of the infrastructure are the smart-contracts – programs that can be launched through the block system along with the payment procedure. Crypto-cash loans, such as Bitcoin and Ethereum, support micropayments, which is not feasible in traditional payment services because of the cost of transferring money. This way a new kind of music services can appear on demand. Users will be able to select songs and immediately transfer money to copyright holders while listening.
Finally, another advantage of the register in the blockchain is the ability to simplify the relationship between creators and consumers. Composers and artists will no longer need to purchase platforms and attract brokers, who often take a large part of their earnings. Musicians will be able to receive compensation directly from each listening song. This is especially useful to amateur musicians who do not have the support of major record labels.
ke any other solution to the problems of the music industry, the blockchain has its weak sides.
For example, last year, the singer and songwriter Imogen Hip began work on a new music system called Mycelia. A platform that works on the basis of a blockchain will support direct payments to artists and will allow them to control better how their songs get to listeners and other musicians. The singer describes her idea as “an attempt to transfer power from the top down and allow artists to manage their future independently.”
So, is it possible to solve all problems with the help of a blockchain tech?
Like any other solution to the problems of the music industry, the blockade is not without its shortcomings. However, he can, at least, equalize the rules of the game for all parties. It will bring the most benefit to artists, authors, performers, and musicians – the real trendsetters in the industry – because now they will finally be able to own their own works and receive for their work on merit.
At the same time, such changes will not appeal to those who benefit from a lack of transparency in the music industry, as well as significant technology companies that prefer to create monopolies of market openness. If the idea of using a detachment really does develop, then conflicts are unlikely to be avoided.