Over the last few years, blockchain has become a buzz word for cryptocurrency. However, blockchain technology has applications beyond just being used for digital Monopoly money. Many industries can benefit from the added security blockchain has to offer like shipping companies and even musicians. Today we will be focusing on the financial benefits of blockchain to musicians.
What is Blockchain?
In order to understand the benefits of this technology, you first need to know what blockchain actually is. To put it simply, blockchain is a digital ledger used for financial transactions that is completely person to person without the need for intermediaries such as banks, or the feds.
How Does Blockchain Work?
Each transaction is verified by a decentralized network of computers called nodes. These powerful computers add timestamps and stitch the data to the last transaction. When enough transactions are stitched together they form what is known as a “block”. Then the network attaches that block to the previous block and so on. Where blockchain improves security is that the majority of the network must verify the transaction which is called “proof of work”. When a new block enters the chain, the data can never be altered and creates a public record of the transactions.
Financial Benefits of Blockchain to Musicians
The first way blockchain can benefit musicians is the encryption of file transfers. When creating music, the audio files are regularly sent between different studios for many reasons such as other artists adding their parts to mixing and mastering. Where blockchain comes into play is now there is a bulletproof record of where the files are sent and to whom. This security ensures that if your latest song gets leaked to the public you can trace exactly who did it and who they leaked it to.
Another way blockchain can benefit musicians is with royalties. In the past, the record labels held all the power. They recorded the music, mixed it, and distributed it to the public. In today’s internet age, the concept of a record label is little more than a glorified marketing company.
Independent artists and sound engineers have the ability to create professional quality music all by themselves even from the comfort of their own homes. Blockchain is a great way for people in the music industry to conduct business with each other securely without the worry of an obsolete record label muscling their way in to hoover up the profits after all the hard work has been done.
On top of all that, blockchain can also be used to add an additional layer of security to things like concert tickets and live events. The main advantage would be making sure electronic tickets are not stolen or duplicated as well as missing automatic refunds, etc.
At the end of the day, blockchain offers yet another secure way for musicians to get paid digitally. It will be interesting to see how the use of blockchain tech in the music industry expands in the years to come. Don’t be surprised if you see more and more musicians accepting crypto tips or using blockchain technology to secure their music and their money.
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