Blockchain will provide deductions for music
Since the launch of the Napster music sharing platform in 1999, this industry has been almost at the bottom, its revenues have steadily declined, and the procedure itself has been characterized by a lack of transparency, problems with piracy and civil strife over the fair distribution of dividends.
Music companies hate streaming services. Streaming services hate file sharing. In addition, above all, songwriters hate almost everyone else for earning huge sums from their work, and the authors get pathetic crumbs.
With so many conflicts of interest, there seems to be no single business model that can work to meet the needs of all parties involved. However, now, after many years of difficult relations with the technology sector, the music industry has finally found a chance to move in a positive direction, using blockchain technology.
This innovation has attracted the attention of investors and professionals in various industries and is now showing promising signs of a change in the music industry, meeting the needs of everyone. However, the main advantage of blockchain is that transparent relationships can be established between creators and consumers.
First, the music can be published via blockchain with a unique identifier and a time stamp in such a way that it cannot be changed later. This can solve the historical problem of copying and modifying digital content. Each entry can store metadata containing information about owners and rights in a transparent and unchanged form, which everyone can see and check. This ensures that the creators of music will receive money for the use of content.
Blockchain technology can also revolutionize the monetization of music. Blockchain-based cryptocurrencies, such as Bitcoin and Ethereum, support micropayments, in contrast to classical means of payment.
Startups introducing deductions for music
Companies such as Benji Rogers’s PledgeMusic online music platform have published a comprehensive project of the Fair Trade Music database, a list of artists and their work that are registered on the basis of blockchain.
Creators can upload their music and related metadata to the network. As a result, companies and consumers can search and play music, and smart contracts ensure that the content owner is paid automatically for using it.
PeerTracks is another music startup that is preparing to launch its platform and makes big bets on blockchain. PeerTracks is a kind of stock trading system for artists that greatly simplifies revenue management, which makes it especially convenient for artists who cannot afford to pay someone else for this service. The system uses MUSE blockchain, designed specifically for musicians.
BitTunes, another blockchain-based startup, wants to solve the problem of the piracy of digital music using the “whip rather than whip” approach, as Simon Edhouse, managing director of the company, put it. The company offers a peer-to-peer bitcoin-based file-sharing platform.
As in any other field, blockchain will not be the ideal solution to all the problems facing the music industry. At least it will help to balance the conditions to some extent. Artists, songwriters, performers and musicians – the real content owners – will get the most benefits. Because they will finally be able to own their creations and get their due for their efforts.