How Musicians Can Make a Living From Owning Bitcoin?

In the music industry there is no central database which keeps a track of data about music. The two most significant types of data relating to any music are the person who created the music, and the person who owns the music rights. However, finding this information is rather tricky and this proves to be a big blow for music services, artists, and even consumers. So, in this situation, decentralized and open-source cryptocurrency technology provides a solution. Using the technologies behind such crypto assets it is indeed possible to organize information about music; this is turn will help to change the ways in which rights-holders and artists are getting paid.

In recent times, many music industry projects sought the blockchain technology to organize their music, like Mycelia by Imogen Heap, and DotBlockchainMusic by Benny Rogers, founder of Pledge Music. The blockchain has blocks of information that are chained together cryptographically in chronological order. So, data cannot be modified and the data is distributed, not centralized. The blockchain works like a network and database rolled into one. If the music copyright data can be stored in a blockchain through a cryptographic digitalized fingerprint, then all updated information would be accessible to users.

Besides the problem faced by music rights holders, there was a problem of payments. Listeners can get tracks with a single click, but royalties only reach musicians much later. Smart contracts which can be implemented through software on a blockchain can split the royalties in agreed amounts whenever a track is being streamed or downloaded. Cryptocurrencies like the Bitcoin can actually enable payments as fractions.

Finally, the system with which royalties were calculated or paid was not transparent earlier. So, some revenues even ended up in what is called a “black box” which artists could not access. In this culture of privacy, the artists could not audit their payments properly as they could not know for sure how much they were supposed to be paid. This is where the blockchain can help musicians earn their own living. Musicians will need cash up front to create new tracks. This requires backing from the big labels, like Warner, Universal, or Sony. With blockchain technology being transparent, new investors may be attracted. So, one can expect the growth of “artist accelerators” like those involved in creation of tech startups. This early support is in exchange for a stake in these startups’ future profits and the payment is made via smart contracts. The transparency could also encourage crowdfunding whereby artists will give away shares that can be cashed in against future revenues.

Blockchain has shown a lot of promise in supporting governments and banks, and there were major investments in many industries, like music. Stem is a venture that organizes revenues from streaming sites and it raised as much as $4.5 million. While some of the claims in favor of blockchain technology may sound slightly overrated, this technology does have the power to revolutionize the music industry.

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