Blockchain is simple to understand at a basic level, existing as a distributed database, where different devices distributed across the network must verify the entries posted. As a result, blockchain is most well-known for decentralization, anonymity and security, all of which are evident in the first cryptocurrency, Bitcoin (BTC). While many are quick to associate Bitcoin with blockchain, this is only one of the possible use cases for the technology.
One of the most notable use cases right now is the music industry, where creators have gained new opportunities to connect with their fans directly, further eliminating the need for an intermediary.
Today, the music industry is plagued with several overarching concerns, including the burden that record labels seem to place on the musicians that work with them. Traditionally, labels have determined how an artist will look and sound, also taking a huge cut from their profits. For perspective, three major record labels in the United States account for two-thirds of America’s music.
Sadly, this has resulted in creatives being the first to put in work but becoming the last to earn profits. These artists often receive little information into the royalty payments they will receive and are not given associated data about who is listening to their music.
These problems have only been amplified with streaming services such as Spotify, which, although seemed promising to the industry at large, have proven to favor the label once again. Then there are the emerging file-sharing platforms that were met with a regulatory roadblock and failed to realize the initial liberating purpose.
Fortunately, the underlying decentralized ledger technology holds the potential to give us a golden age of music for artists and their fans.
Music through NFTs
Many of the DLT-powered projects that are currently reshaping the industry are built based on the concept of bringing fans and musicians together. At their core, these platforms address the user experience for both audiences as they build larger…