Blockchain technology is simple to understand at a basic level, existing as a shared database, where different devices spread across the network need to verify published entries. As a result, blockchain is best 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 just 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 directly with their fans, further eliminating the need for a middleman.
Today, the music industry is grappling with several overriding concerns, including the burden that record companies seem to place on the musicians who work with them. Traditionally, labels have determined how an artist looks and sounds, taking a huge chunk of their profits as well. For perspective, three major record labels in the United States account for two-thirds of American music.
Unfortunately, this has resulted in creatives being the first to work, but becoming the last to make a profit. These artists often receive little information about the royalty payments they will receive and do not receive associated data on who listens to their music.
These issues have only been amplified with streaming services such as Spotify, which, while looking promising for the industry as a whole, have once again proven to favor the label. Then there are the emerging file-sharing platforms that hit a regulatory hurdle and failed to achieve the original liberating goal.
Fortunately, blockchain technology has the potential to give us a golden age of music for artists and their fans.
Music via NFTs
Many blockchain-powered projects that are currently reshaping the industry are built on the concept of bringing fans and musicians together. At their core, these platforms are about user experience for both audiences, as they create larger, more engaged communities where fans become marketers. In many of these models, fans are motivated to fulfill this role since they can make a profit as artists’ viewership grows.
These platforms also incorporate non-fungible tokens, or NFTs, as a method to record ownership of items, giving artists the ability to release their music on the blockchain. This model allows artists to regain full control of their work and resolve ownership issues on their own. For example, these users can sell albums as NFTs, where selling stakes can provide collective ownership. Using this model, musicians take on a business role and promote authentic art exactly as they see it.
With an NFT, artists also have access to new sources of income. An example of this is that musicians can automatically get a share of the benefits when others use their work to release remixes. Alternatively, artists can also choose to receive micropayments for their streams while taking advantage of NFT minting – opening the door to several additional possibilities.
Local talent will also benefit from new opportunities for international discovery, a possibility attributed to improved algorithms and the underlying inclusivity of blockchain-based music platforms. Not to mention that encrypted payments will allow near instantaneous transactions when a fan plays their music.
In addition to NFTs, utility tokens and other cryptocurrency tokens play an important role in the development of blockchain-based music platforms. Typically, platform-native tokens offer fans and artists an easy way to influence and reform the process of creating and sharing music.
An independent marketplace
Now the only missing piece is a platform that will bring these concept ideas to life. Several young ambitious projects have already started this process, among them Tune.FM.
Tune.FM grew with the mission of creating a global market for independent music. Here, artists will have a place to collaborate, share their music, and connect directly with their fans. Artists will have access to a hybrid license that will allow them to stream, sell, publish and stream music while accepting fiat and cryptocurrency payments through the same platform.
As the foundation of the marketplace, Tune.FM leverages the JAM token to enable micropayments directly between fans and artists, ensuring that artists earn more than they would through the traditional stream-and-pay model. download. The JAM token is further equipped as an incentive to stream and hold music. As an incentive, JAM will create a win-win system where all participants are fairly compensated for their efforts and can continue to benefit from the entire Tune.FM ecosystem.
Through the provision of utility tokens, NFTs and blockchain, Tune.FM is positioned to democratize the music industry, starting with APE by ApeCoin. ApeCoin is an ERC-20 governance and utility token used within the APE ecosystem to empower and encourage the creation of decentralized communities at the cutting edge of Web 3.0. It’s additions like this that will support major labels, major publishing companies, and streaming services acting as distribution gatekeepers.
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