Blockchain has been attributed with the ability to bring such a significant amount of progress in many enterprises. Anything that handles digital information, contracts, cash, and transactions could discover applications for this technology. You will be surprised to know exactly how vital blockchain technology can be, and that a few new companies are now ready and running in this segment.
Blockchain has an extraordinary structure that makes it viable for use over various industries. It is useful for processes involving middle-men, over-centralized industries, making trust by eliminating deceptive nature and building up transparency, following the flow of digital assets, and encouraging recording transactions. Taking a look at the music business, we can’t help but see a couple of difficulties that artists would prefer to manage.
Problems in Music Industry
The music business, due to the centralized and intervened nature of generation and conveyance, endures mainly through these following issues:
- Piracy of digital records
- Inappropriate Rights Management
- Complicated Royalty Management
- Delay in payments to artists
Aside from that, the irony is regardless of digital records the artists cannot get ongoing information for their creation which generally would have helped them enhance their marketing efforts. As we know, there is an issue when such critical bits of knowledge aren’t accessible in spite of an industry being digital and online.
Issues related to the music industry
The serious problem with this source of financing is that it is a type of enslavement. In 2015, Prince cautioned individuals against signing record contracts, referring to them as a type of slavery. Most artists never pay the advance and end up living through their professions continually working for the record label. It doesn’t imply that record labels are the adversary here. There are additionally numerous artists out there that would not have made it had they not made the deal.
How Could Blockchain Help?
Blockchain innovation could be utilized to decentralize the raising of assets for artists. Distributing the hazard among various partners rather than one could result in a progressively good sharing of royalties. Additionally, decentralizing the business will empower fans and enthusiasts to have a say in how artists get financing, and this democracy would upgrade the disclosure of new talents.
- Allotment of Royalties
Another test challenging the business is the allotment of Royalties. Most songs have many engaging parties that ought to be paid. There are various situations where lyricists, producers, and administrators do not get paid, particularly the ones who worked with the artist before they turned out to be exceptionally popular.
Blockchain’s smart contracts can be utilized to empower automatic payments to royalties. Additionally, if artists could tokenize each project, royalty shares could be circulated to every contributor consequently. This could likewise encourage the decentralization of financing. There should be a far-reaching digital rights database, however being worked as a blockchain ledger, which is immutable one, it would be very protected and credible.
- Fighting Piracy
Piracy has been a noteworthy setback for artists during the time of tapes. Today, with the digitization of the media and music ventures, it has turned out to be much progressively uncontrolled. The unchanging security that it is related to blockchain technology could be utilized to think of methods for avoiding unapproved distribution. By chance that if we could encode tracks on to the blockchain, we could guarantee that a unique record is made each time the song is composed, counteracting piracy of the content.
British artist Imogen Heap has been on the cutting edge in trying to discover a blockchain solution for the music business. Her trials go back to 2014. Currently, she is associated with another project called Mycelia. It is a research work community for music producers that targets that business which completely recognizes and pays for an artist’s hard work. New companies and organizations investigating blockchain for use in the music business incorporate PledgeMusic, PeerTracks, BitTunes, ConsenSys Suite, dotBlockchain, Bitsong, and Choon.
With blockchain-based cloud storage platforms, the issue can be solved where the accurate records are broken into numerous pieces and stored in a distributed way. And the beneficial thing is, these can be reassembled on interest upon a paid request from the consumer. Last yet not the least, the most complicated issue of rights management can likewise be solved by the blockchain. And through this, royalty management and appropriation among different entities like, writers, producers, distributors, and singers can be done effectively.