Just like in the case of every other industry, the impact of the blockchain on the music industry has been profound. It is its secure nature which helps to bridge the gap between music creators and music listeners. The blockchain has emerged as a groundbreaking technology, guaranteeing transparency by effectively eliminating middlemen. It ensures quick seamless transactions and complete transparency of all music-related data.
Ways in which the blockchain has impacted the music world:
- Smart contracts: With the introduction of smart contracts, a by-product of the blockchain, the traditional relations between third parties and content producers has been eliminated. Earlier, music creators would have to navigate through expensive purchasing platforms and brokers to sell their works to fans. This involved high transactional costs. But now, they will no longer have to rely on these middlemen like financial brokers for royalty payment. Instead, they will receive direct compensation every time their music is used. Royalties might be paid in bitcoins in seconds with this direct payment on blockchain, as the transaction process is streamlined. With no central authority, bitcoin is a decentralized digital currency that allows for more flexibility and security in the transaction process. It’s also the most widely traded cryptocurrency, and it can be exchanged with automated trading bots, which saves time and money for traders. Amongst many trading bots available, Bitcoin Gemini is the most popular, with demo accounts accessible to test trading outcomes before going live. Traders can create an account on the Kryptoszene.de Bitcoin Gemini plattform and engage in live trading to increase their profits. This advantage that the blockchain offers is most appealing to music producers, especially the new kids on the block who are not backed by big music labels. Smart contracts will also let the original music creators decide on when and at what rate others can use their works. These self-executing contracts bind all parties to rules of an underlying code. This can help to do away with the need for litigations and lawyers eventually.
- Transparency in data: As the blockchain gains popularity, content creators can get valuable data about the use and sales of their works. Besides music sales, this information is important because sometimes music creators are not recognized and neither paid for their works. The blockchain changes all this. Content creators are now free to upload their musical works onto a single database. So, elements like cover art, musical composition, lyrics, audio/video performances, licensing information, etc are all uploaded into a verifiable peer-to-peer system. In this way, the blockchain works as a decentralized transparent database storing copyright data from all music creators. With the emergence of such a global registry, all issues of music rights-related conflicts are resolved faster. Imogen Heap has allowed her startup Mycelia to let content creators store their data from songs in a global database.
- Benefit for fans: Both content creators and their fans stand to gain from such a global registry. Collective management organizations or CMOs often do not acknowledge and pay content creators in a just manner. But with this universal ledger in place, they will now start getting payments in a timely fashion along with accreditation. According to reports, almost 20%-50% of payments are never distributed to the rightful owners. This asymmetry can be corrected with a wider adoption of the blockchain technology.
To conclude, the blockchain technology has the power to save billions for the music industry through revolutionizing the royalty’s process. It can ensure that music creators, artists, and publishers, are all paid appropriately. With the blockchain in place, there will be only one version of facts, regardless of territory. This will ensure that everyone in this industry gets compensated in time. It will, in turn, will save the industry a huge amount of money that is lost every year through legal expenses and delayed payments.