A distributed ledger is a new class of database powered by blockchain technology. It provides us with a safer approach to managing and storing data. Each network member receives an exact duplicate of the data when it is exchanged. Any data modifications are immediate, if not instantly, reflected in all copies.
As a result, a blockchain database is harder to attack than a single database where all the data is located. The blockchain network’s users will quickly notice a modification to one database section, making it tougher to alter the data.
Music is a complicated industry. The business is not without controversy, from monopolies to the meager income prospects for aspiring artists. Even though Web2 brought about a lot of good developments, the sector still has a long way to go. As a result, initiatives are attempting to harness blockchain technology to offer fresh approaches to the venerable music industry.
Because of the growth of the internet and social media during the last ten years, the sector has undergone a significant transformation. Fans have numerous opportunities to interact with and support their favorite bands, while artists have new platforms to offer their music.
How does this affect the music industry?
By redefining the rights and royalties process and guaranteeing that everyone in the music industry value chain gets paid fairly, blockchain can salvage the billion-dollar music industry.
The financial services sector has been fast to recognize and apply the advantages of blockchain. Through the platform Corda, they have collaborated to create a consistent approach throughout the Global Financial Services sector. B3i, the Blockchain Insurance Industry Initiative, was also introduced by the insurance sector, cutting payment and settlement times from weeks to days.
Below are some of the ways blockchain can be beneficial for the music industry,
Giving fair opportunities to all songwriters:
Tunedly created a new project called TunedCoin, innovating how music publishers can utilize public opinion to scout new music, while rewarding music fans with TunedCoins and NFTs. Music listeners can sign up for a free account and start listening to new songs, upvoting those they like the most. The twist is, all songs stream anonymously, with no artist name, image or popularity metrics displayed, hence listeners have to judge the song based on its own merits.
For every upvoted song that gets signed to a music publishing contract, the listener receives TunedCoins and the song’s NFT, which allows them to collect royalties as the song climbs up the charts.
Fair compensation for musicians:
Tune.FM, a platform run by Hedera Hashgraph, promises to be able to pay out 90% of music streaming revenue to artists, which is almost ten times more than what artists would receive from streams on traditional platforms. Every time a user streams a piece of an artist’s music on the site, the artist can receive digital tokens.
Co-founder of Tune.FM Andrew Antar said in a statement that many independent musicians suffered due to the COVID-19 outbreak. He said many were having financial difficulties due to companies like Spotify not paying artists adequately. They serve as a remedy for the millions of creatives who do not receive fair compensation from the major music streaming platforms.
Letting fans co-own songs:
Through non-fungible tokens, Royal keeps allowing fans to share ownership of tunes with their favorite artists. The platform recently provided tokens for American DJ and composer Diplo after releasing NFTs for well-known rapper Nas.
Royal co-founder Justin Blau, better known as 3lau, stated in a blog post announcing the Diplo release that the platform wants to “empower artists to preserve ownership over their material” while providing fuel for their careers. Additionally, Blau thinks that through co-owning music, listeners “create a stronger relationship” and become more creatively autonomous.
Using NFTs to power music collaboration:
The Squad of Knights initiative allows NFT owners to establish six-person squads, each member having a specific function to play in the music-making process. The platform enables community members to fully own the music they create, unlike working with conventional music labels.
Finding collaborators is difficult, according to the company’s founder and award-winning record producer Ramon Ibanga. Even more difficult is finding the proper people to collaborate with. He stated that the initiative aims to connect good music producers, engineers, artists, and managers in the real world and the Metaverse.
The Metaverse’s decentralized audio service:
Audius, a Solana-based music streaming service, offers the Metaverse a variety of decentralized music files. The platform collaborates with Metaverses like Portals to provide music to its consumers. Audius is a decentralized platform that enables anybody to access and utilize the material for their projects.
Why may blockchain technology be useful for the dissemination of music?
The blockchain is fundamentally a distributed ledger that can verify and record transactions without the aid of a centralized authority. The ledger is shared among the nodes that make up the network and is accessible to everyone; nobody owns it.
Cryptographic hashes are used to connect the data kept on the ledger, making it essentially irreversible and tamper-proof. It implies that parties can safely trade data, money, or anything else of value between themselves and for any amount.
One of its benefits is a blockchain ledger’s ability to forge a more direct connection between producers and customers. The blockchain can change publishing, commercialization, and the interaction between artists and their fanbases in the music industry.
The commercialization of music may transform thanks to blockchain technology. Smart contracts, which are programs that may be performed on the blockchain alongside payment transactions, serve as the foundation for the architecture. Micropayments are supported by blockchain-based cryptocurrencies like Bitcoin and Ethereum, which are practically not viable with traditional payment methods owing to transfer fees.
Another benefit of a blockchain ledger is creating a more direct connection between the different co-creators of a song. Most songs have many co-writers in addition to session musicians, producers and others. Over the years, without proper documentation, splits may get lost or be disputed. Blockchain can record everyone’s involvement at the source and store it securely indefinitely.
Blockchain won’t change the music industry “tomorrow” since it will take time for the major record labels, publishers and performing rights organizations like ASCAP and BMI to be on board. However, blockchain technology is progressively being introduced to the music business through small projects like those mentioned above. Eventually, blockchain will become the primary method of tracking and transferring music assets, rights and royalties.