Is blockchain causing a music revolution?

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Is the music industry about to implode?

This is the promise that blockchain technology is making by giving artists more options to monetize their work. Musicians can now embed their music directly into the blockchain and get paid immediately in any cryptocurrency of their choice.

What is blockchain?

Blockchain is a new technology. It allows anyone to set up a distributed ledger based on open source software that can confirm and register transactions without the need for a central authority.

On a blockchain, records are kept of all transactions that occur across a peer-to-peer network. With this technology, strong cryptographic methods validate and chain together blocks of transaction data.

The ledger is spread across nodes (networked computers) that are available to everyone and owned by no one. The information comes in the form of unchangeable, digitally recorded data in packages we call blocks.

According to William Mougayar, author of The Business Blockchain, blockchain technology is “more decentralized, more open, more secure, more private, more equitable, and more accessible.”

The problem in the recording industry

In 2015, with a total revenue of US$15 billion, the recording industry had its first significant year-on-year growth in nearly two decades. Digital became the primary revenue stream for the first time when digital revenues overtook those of physical formats.

There is a serious lack of transparency in the music industry.

This sounds like great news, however, artists rarely come out with a big payoff. A complicated web of ownership has created one of the worst systems imaginable, making it impossible for musicians and other people involved to get paid their fair share.

Streaming services like Spotify and user upload platforms are rapidly growing, but fail to provide the musicians a sustainable and reasonable share of the profits. Although music consumption is exploding globally, it is increasingly difficult for many artists to make a living with their work.

There is a serious lack of transparency in the music industry.

According to Rethink Music: “Significant funds are often paid to the wrong party, while large pools of royalty revenue end up outside the artist’s reach in a so-called “black box” – where rightful owners of royalty revenue cannot be accurately identified because of a lack of an industry-wide system for tying usage to ownership”

Transforming the music industry

Peer lending and crowdfunding have already greatly changed different industries. With the cryptosphere, there are now new ways of funding projects and selling products. It places all necessary tools directly in the hands of the project manager.

How does it work?

Instant and fair distribution of revenue

More control over ownership

Short outlook beyond the horizon

Conclusion