How Can the Music Industry Integrate Blockchain Technology Use?
Blockchain technology first came to the limelight with the introduction of bitcoin. The invention paved the way for innovative solutions in the financial industry. Over time, developers discovered that the technology could be useful in various other sectors as well. The introduction of ethereum created a platform that crypto developers and enthusiasts could use to develop smart contracts and dApps for just about any sector, including healthcare, the food industry, the justice system, education, supply chain, and voting, and several others.
The music industry is one of the unique use cases of blockchain technology. Over the years, the music industry has grown, increasing its worth to billions. Despite the giant leaps that the industry has made, it is not void of problems. One of the significant plagues in the sector is artists not receiving royalties for their music. Blockchain technology presents several features that could prove advantageous for improving and revolutionizing the industry. So, how is blockchain useful to the music industry?
The blockchain system will provide a quick and secure way of handling money in the music industry. Unfortunately, the massive industry is filled with cases of exploitation. Record labels, managers, event organizers, and third parties take advantage of artists financially.
Even in this digital age, where the music industry has grown, it benefits everyone except the creatives themselves. Revenue made through blockchain will be transparent and traceable. It will also reduce payment delays, making it easy for upcoming artists to survive in the mainstream music industry.
Record-keeping using blockchain provides people in the music industry with reliable backup, better-searching capability, security, and control over the content. Blockchain will also help track record sales, booking and managing performances, and tracking payments. Additionally, people in the music industry can use blockchain to store client contacts.
Usually, each of these activities takes a lengthy process requiring several people. Blockchain technology will make all of these more straightforward, hence, saving time. Anyone on the blockchain will have access to the records, which will help with all involved parties’ transparency.
The music industry can benefit significantly by using blockchain technology for music distribution. The technology can provide a direct link from artists to listeners. Because of its decentralized nature, the blockchain system will do away with numerous intermediaries who dominate the music industry. Additionally, industry players can use the system to provide enhanced music sharing platforms that will be easily accessible and inclusive.
The industry gatekeepers who control most of the streaming make it an expensive and lengthy process to get music on reputable and prominent music platforms. Therefore, blockchain will give all artists a chance to showcase their music. It will also shorten the amount of time it takes for released music to get to listeners.
The music industry thrives on contracts. Third parties responsible for artists’ contracts often extort and lengthen the processes for personal gain. The introduction of blockchain technology in the industry will pave the way for smart contracts. Blockchain will facilitate, verify, and negotiate contracts for artists without any middlemen. The technology will also make the process automated, making it cheaper and faster.
Blockchain also avoids breaches of contract and loopholes created with ill intentions by keeping records of deals accessible to both parties. Implementing blockchain will help clean up the mischief that is rampant in some record labels.
Licencing is a lengthy, expensive, and at times complicated process. The music industry requires several licenses, which may be exhausting for new and existing artists. Blockchain technology can help automate licensing procedures and make everything faster and more transparent. Simplifying the licensing process will make it more convenient for artists to plan their shows, record music, and sign labels.
Blockchain technology will help monitor views, downloads, and streams. Usually, charts and ratings are not entirely correct because they require people to collect data from different sites and platforms then add up the numbers. These numbers determine the performance of songs and musicians and are often used in award shows.
Award ceremonies are popular, entertaining, and are significant in the music industry. These ceremonies have been previously accused of bias and, at times, are wrong. Blockchain will make them open, fair, and transparent because it gives accurate and specific information for everyone to see and validate.
Artists make significant losses when non-involved parties post music on their sites without permission. For example, multiple people record during concerts and post, dividing views and attention from the real content owner.
Blockchain can keep track of all posts, shares, and actual sales, making it easy to claim the money. Besides, the technology will help track and report illegal music activities, therefore, protecting creative intellectual content.
It might take some time for the music industry to transition fully to the blockchain system, mostly because many people benefit from the existing systems’ loopholes. Some people are wrongfully benefiting from the music industry and exploiting artists. They will most probably be at the forefront of opposing and derailing these changes as they stand to lose a lot.
Blockchain adoption in the music industry is slowly taking a course on digital platforms such as Spotify. Without a doubt, these changes will be of utmost benefit to artists and consumers/ listeners of the music by streamlining delivery channels.