To know the importance of Blockchain in the music industry, we must first understand the concept. A blockchain is a collection of records or transactions linked to each other which cannot be easily altered. Blockchain platforms, unlike bank records, decentralize your records, making them accessible to anyone who’s a part of the transactions.
Like a book, where information on a page is linked to the information on the next page, Blockchain does the same job of linking records in one block to the other. This technology ensures the safe and transparent transaction of entries on every block. You can buy Dogecoin, Bitcoin, Ethereum, and NFT securely using this technology.
While Blockchain has proven to be a useful tool for cryptocurrency marketers, it can be quite confusing to understand how it can be useful to artists and the music industry. One very important thing Blockchain does remove intermediaries; this ensures that every payment goes directly to the musician and producers.
Smart Contract in Blockchain and Its Importance to the Music Industry
Blockchain, as was stated earlier, is decentralized; this, therefore, ensures all smart contracts are not available to one entity. This contract is available on thousands of computers, allowing ease of review by the artists and buyers involved. To understand the relationship between smart contracts and Blockchain, we must first know what a smart contract is.
Smart contracts are similar to normal contracts but are completely digital. Taking a digital nature, these contracts are available to anyone who subscribes to them. These contracts create rules on actions in the Blockchain. An artist can create rules on how he wants his music to be used and the price he wants it sold with music blockchain projects. Blockchain works around these rules or – as we may call it – smart contracts before accrediting a purchase.
We have often heard artists who sign into a record label come out against a certain company claiming they are being jilted. This situation is a little bit more common than we might believe. Some recording companies take the majority of the profit in sales of an artist’s work, giving the artist only a small percentage of the profit.
Importance of Blockchain in Eradication of Middlemen in the Music Industry
Using a musician like Britney Spears as an example, it is no news to everyone one that Britney was under her father as a conservatee. During this conservatorship, it was reported that Britney’s father took millions of dollars from her, which posed a great loss for Britney. Her father was more or less the middle man in this scenario.
Working with an intermediary can be quite risky, especially in the entertainment industry. Another example of an artist who was a victim of the middleman dilemma is Lisa from the kpop girl group “Blackpink.” It was also reported that Lisa’s previous manager gambled with a large amount of money that was supposed to be used for a project.
These two examples are one of the reasons independent artists depend on Blockchain technology for transparency. Because it works on a decentralized system, Blockchain allows an artist to follow up on the activities done on their records. Blockchain also ensures that all payments from consumers go directly to the artist, thereby reducing the possibility of scams.
Is Blockchain the Future of the Music Industry?
While only a few people understand the importance of Blockchain, it is safe to say that Blockchain might be the future for musicians, especially relating to NFT music. Blockchain technology brings hope to the independent or small-scale musicians who want proper promotion and distribution of their work. It is also a great way for budding musicians to keep track of their records and growth in the most original way possible.
Musicians for so long have been looking for an opportunity to have total autonomy over their music. It is not news that record labels sometimes underpay musicians, which has caused a lot of outrage between artists and their fans. Various artists like Taylor Swift, Prince, Dr. Dre, and more have also spoken out against mistreatment from record labels.
There is also a need for transparency and accountability in the music industry, which can be achieved with innovative technology that ensures privacy of details and transactions, the efficiency of information sharing, and transparency of payments and pricing. All of these and more are possible changes Blockchain can introduce into the music industry, making it better in the future than it is now.
While Blockchain gives total power to the artist, it also allows fans to support their favorite musician. There are no hoops and corners; every payment goes to the rightful owners. Therefore, musicians are now looking into Blockchain technology because of its transparency and security.
The challenge has not always been with the availability of technologies that can transform the music industry but with acceptance and application. Musicians and other key players need to start to identify.