A big speaker in favor of adopting blockchain technology by the music industry, is no other than renowned musician Imogen Heap. The English singer has been an active supporter of this progress, as she already released a single (2015) that is available for purchase through Ether cryptocurrency. So, when taking an in-depth look on how blockchain technology actually contributes to both artists and consumers, we can see some promising innovations.
It`s About Disruption
In wise of artists’ end of the bargain, when consumers purchase music through the blockchain system, specifically through start-ups that enable such service, the payment process is made with cryptocurrency, as the payment goes directly to the artists. The basis of such transaction is enabled by a smart contract which allows artists to receive an instant royalty. The innovative thing here is expressed by the fact that the royalty isn`t shared with traditional middle-factors, such as publishers and record labels. Not only that this archaic monopoly is now breached, but the payment methods are expanded as well. One example for a new form of cryptocurrency music payment was presented by the ICO of the musician Gramatik. The artist had issued his own token called GRMTK, and had managed to raise about 2.5$ million. The great offer he implemented as a part of the funding process was to allow buyers to share his royalties by paying with GRMTK.
What about Disorganized Data Complexity?
Another major radical disruption to the old music industry is based on the data concept. One of the most influencing problems this industry suffers is the fact that the gigantic data base available is actually a huge mess. The current situation generates mal-data which exists by the lack of one unified global database. The data is basically combined of information received from publishers and record labels, who don`t have a unified information platform to lean on. When a single is streamed online, for example, you can’t always tell who are the people involved in the creation process, other than the singer/songwriter himself. That way it’s almost impossible to split valuable royalties in a proper manner to whomever is involved.
Today, it is now possible to tackle this problem and reach desired solutions thorough the blockchain platform. How is it implemented? The vast amount of data related to the music industry is gathered on top of a synchronized database. That way, all of the rights information is shared openly and comprehensively, as it still lawfully belongs to the rights owners.
Naturally, the more musicians and industry personas join the “music by blockchain revolution”, the more it will positively impact everyone who`s involved in the creative side, as well as the business side. The industry contributors will be properly identified and their proprietaries would remain valued.