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It's simple: we save the file, in which we enter the date and time as well as the sum of transactions, etc. After saving, we send the file and ... We no longer have access to it. We can't change anything about it. What we have the right to do is create another file with new data that will be overwritten over the existing one. What are we talking about? This is Blockchain, a system of interconnected files (blocks) that cannot be changed in any way.
Music without intermediaries
How can this system benefit the music industry? Eliminating middlemen! A peer-to-peer network, commonly known as P2P, is a decentralized network communication model that consists of a group of devices that collectively store and share files, with each node acting as an individual peer. In this network, P2P communication takes place without central administration or server, which means that all nodes have equal power and perform the same tasks.
This is why Blockchain technology breaks the existing system of the music industry. It is attractive mainly to young artists. Thanks to it, they can transfer the ownership of copyrights to any person, bypassing intermediaries, and thus their commissions. Thanks to it, we also avoid the risk of duplication of ownership. Owing to the use of blockchain, ownership is immutable and verifiable at any time. It is an epochal change for the music industry. As we know, this industry was controlled by music labels. They constituted a kind of barrier for many young artists. Recently that has changed and there has been a process of change. The first major innovation was the arrival of music platforms such as Napster, Soundcloud, and now Spotify as well. The next major step for this industry is expected to be the emergence of blockchain technology that will return power to creators and their audience.
So what role does Blockchain play in all of this? Blockchain is one of those intermediaries that allow the elimination of all intermediaries in the process of selling and streaming music. The streaming platforms themselves have positively changed the image of music availability for many people. They also filled a huge gap, building a bridge over it connecting artists and their fans. The music streaming industry grew rapidly, providing a win-win, low-cost and listener-friendly solution, and largely eliminated music piracy, thereby increasing the income of the artists themselves. However, this development has shed light on the problem involving differences in the distribution rights of musical works and the remuneration of artists. Therefore, one more aspect has emerged, namely the proportional distribution of artists' remuneration to the popularity of their music on streaming platforms.
The payment discrepancy is caused by many other factors, such as the musical genre in the area the performer is creating or the origin of the artist himself. In China, there is an AliMusic platform that could successfully bridge the geographic origins of artists, but this will always be challenged by many extremely productive artists who influence much of the market. Even now, the distribution of remuneration for music that is made is uneven and favors young, talented artists to make even more difference in the market, which will result in even more variety in the market. This could slightly help change the current trend, where the market is controlled by intermediaries - labels and music platforms that now decide what and when we listen to.
Streaming on blockchain
Streaming platforms based on blockchain technology are trying to change this state of affairs. For example, the Opus platform balances two completely different P2P networks that focus on the complete elimination of all middlemen and providing a fully decentralized streaming platform. Opus uses an unusual file system that it calls the InterPlanetary File System (IPFS), which is a network based on the P2P communication model. In this model, each user is both a server and a client, and everyone has exactly the same rights. This distinguishes a traditional system where the server is the focal point. Opus uses the Ethereum network as a payment system. Thanks to the smart contracts method, it allows for direct compensation of artists for purchased or played songs by listeners. This system allows artists to maximize the compensation they receive from premium users or from advertising generated by free users. It turns out that according to Opus data, the greatest income is generated from this source and sometimes up to 90%.
Other platforms such as Mediachain, Musiclife, eMusic etc. focus on similar royalty distribution and try to give artists a similar independence by enabling them to earn more money. However you look at it, blockchain technology is slowly becoming an extremely easy-to-use alternative for young artists to those parts of the market that are unfavorable to them. According to the Opus report, "taking small-scale operations and low financial independence, smaller artists must have high levels both financially and legally to ensure financial stability."
Blockchain is already changing for the better the way independent artists get paid and increasing the share they deserve while focusing on disseminating their work. Blockchain also allows musicians to change their category to the category of independent artists who form highly engaged communities. "The main goal is to create new ways for fans of their artists to reach them and follow their work in a way that has never been seen before."
