Exploring the Convergence of Music & Crypto
Music streaming platforms have changed the way people listen to music in the twenty-first century. The top ten streaming sites alone have around 250 million monthly users. And why wouldn’t it? After all, a streaming platform allows fans to quickly locate their favorite artist’s song without any difficulty, and musicians receive a portion of the profit, earning almost $7,000 on one million Spotify listens.
Crypto feat. Music
After streaming platforms, the emergence of blockchain technology is another significant trend in the music industry. The introduction of cryptocurrency into the music business might be one of the most anticipated collaborations of this decade.
Monero, one of the most popular cryptocurrencies, has been pursuing prominent musicians in the music business. So far, 45+ famous musicians have indicated that Monero would be accepted in their online stores, including Mariah Carey, G-Eazy, and Lana Del Rey. Cryptocurrency transactions enable viewers to participate in auctions for one-of-a-kind content from their favorite artists. These currencies and the transactions that include them currently empower the artists who sell them. Because these are fresh new phenomena, only time will tell if cryptos in the music business will be there for a long time.
Let’s take a look at how cryptocurrencies and blockchain are influencing the music industry.
Blockchain in Music
Blockchain is helping to solve some of the biggest issues that are now affecting the music industry. With the blockchain, musicians can get equitable royalty payments, venues can reduce counterfeit tickets, and record labels can track music streams and compensate all artists who contributed to songs or albums in real-time. But how is it assisting?
Smart contracts, executed on the blockchain can distribute royalties in agreed-upon proportions as soon as a track is downloaded or streamed, leaving no room for stumbling blocks in which payments take years to reach individuals responsible for creating the music. In addition, the method for calculating and paying royalties is frequently unclear. Some revenue winds up in a “black box,” far from the reach of the artists and composers who are entitled to it. The transparency provided by blockchain technology can help musicians overcome the problem of seeing a clear path to prosperity.
Crypto for Artists
According to a recent Business Insider Intelligence study, a blockchain-based approach can boost artist revenues by basically converting their intellectual property (music) into a financial asset. The use of cryptocurrencies in the music industry can assist musicians in eliminating all of the fees that middlemen such as crew members, producers, and record labels impose, which leaves artists with less than half of the money originally generated before dividing.
As a result, singers are creating their own currency and forming collaborations with major cryptocurrencies. Gramatik, a Slovenian electro producer, is the first musical artist to launch his own cryptocurrency. RAC, an electronic musician, has also created his own coin on Zora ( a crypto-based marketplace). The new coin from RAC is called $RAC, and it is based on the Ethereum blockchain.
Not only would have their own money eliminate the middlemen, but it may also mean fewer regulations from their present sources of income and a more true connection with fans. By collaborating with AudioCoin and taking both Bitcoin and AudioCoin from fans purchasing her tenth album Utopia, Björk was one of the first artists to see the possibilities of joining the crypto-music market.
Crypto Music Startups
The elimination of middlemen in the music business is the goal that virtually all crypto music startups aim towards. However, updating the outdated star and label systems is not an easy task. Successful startups will combine the best of technology and business to address challenges for artists and fans.
Some out-of-the-box solutions, backed by a strong team and investors, may succeed in establishing a genuinely decentralized and vibrant music economy. Now let’s look at several crypto music startups attempting to disrupt the music industry in some way.
Ujo
Ujo Music was one of the first companies to use the Ethereum blockchain to disrupt the music industry. Using smart contracts and cryptocurrency, you can directly buy and tip artists.
Musicoin
Musicoin is a shared economy music streaming network that allows for music creation, consumption, and distribution. Their cryptocurrency, MUSIC, is global money that enables all music and music-related transactions.
Viberate
With over 460,000 artists, 5,000 music festivals, and 500,000 worldwide music events, Viberate is the world’s largest live music database. VIB tokens, which the platform sees as a go-to digital currency in the music industry, are awarded to community members.
OnChain Music
Music hosted with OnChain is disseminated through platforms like Aurovine, Audius, XSongs, and Emanate, and artists and labels earn 85 percent of all money produced. Revenue is distributed in crypto, which can subsequently be exchanged for USD or USDT (Tether.)
Inmusik
Inmusik is a blockchain-based social networking platform that allows budding musicians to share their songs and communicate with followers. With Inmusik’s cryptocurrency ($OUND Token), individuals who communicate with other community members and contribute to an artist’s success will be rewarded.
MediaChain
MediaChain is a peer-to-peer blockchain database that enables data sharing across apps and organizations. The platform creates smart contracts with musicians that clearly specify their royalties requirements, eliminating the need for third parties or eventualities. Spotify bought MediaChain in 2017 to assist in resolving royalty payments and rights holder disputes in the music business.
Final Take
Artists can develop new possibilities and experiences for their audience thanks to cryptocurrency. Musicians are continuing to innovate in terms of what they give their fan groups. As the situation with cryptocurrency evolves, some feel it will fundamentally transform the music industry, much like the internet did. In any event, the mere possibility of change is no assurance that it will occur. There are significant obstacles to overcome, ranging from difficulties with the cryptocurrencies themselves to worries about the integrity of the data and opposition from industry figures who see this new technology as a danger.
