Blockchain Applications in Music
How Blockchain Technology Empowers Musicians
Blockchain technologies streamline ownership rights and help provide fair payment for musicians’ work while bringing industry-wide transparency.
Key problem areas in the music industry include transparency, clarity of ownership, and royalty distributions. Ever since online music sharing began, the industry has struggled with finding new ways to monetize digital music files that have now become non-scarce digital goods. The basic information that is needed to identify who wrote, performed, and owns the music that you listen to, is frequently overlooked. This data and its accuracy are vital to ensuring that creators and owners get paid for their work. Furthermore, the antiquated copyright databases and complex system of royalty collections make it orders of magnitude more difficult to get music from legitimate sources.
By utilizing blockchain technology and smart contracts to create a comprehensive and accurate decentralized database of music rights, the possibility for instantaneous and totally transparent transmission of artist royalties, including real-time distributions to co-writers, producers, technology partners, publishers, and even labels is now a possibility.
Integrating web 3.0 solutions would open up the potential to create an entirely new decentralized system that supports scenarios in which fans could pay for only the amount of the song that they have listened to, or make payments in real-time on a micro scale. Most importantly, blockchain smart contracts ensure each time a payment is generated for a given work, the money is automatically split according to preset terms. Each party’s account would instantly reflect the additional revenue without the need for a third-party fund distributor.
These are just some examples of how distributed ledger technology can be deployed to alleviate significant music industry pain-points for artists, record labels, and consumers.