How ambitious young projects combine distributed ledger technology and music 16

How ambitious young projects combine distributed ledger technology and music

While many are quick to associate Bitcoin with the blockchain, this is just one possible use case for the technology

Blockchain is easy to understand at a basic level, it exists as a distributed database where various devices distributed over the network must check the published records. As a result, blockchain is best known for its decentralization, anonymity, and security, which are evident in the first cryptocurrency, Bitcoin (BTC). While many are quick to associate Bitcoin with the blockchain, this is just one possible use case for the technology.

One of the most notable use cases right now is in the music industry, where creators have gained new opportunities to communicate directly with their fans, further removing the need for a middleman.

Today, the music industry faces several overarching challenges, including the burden that record companies place on the musicians who work with them. Traditionally, labels have determined how an artist will look and sound, while also taking a huge share of their profits. In comparison, the 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 go to work but the last to make a profit. These artists often receive little information about the royalties they will receive and no associated data about who listens to their music.

These issues have only been exacerbated with the help of streaming services such as Spotify, which, while seemingly promising for the industry as a whole, have once again proven their support for the label. In addition, there are new file sharing platforms that have hit a regulatory hurdle and failed to realize the original goal of the exemption.

Fortunately, the underlying decentralized ledger technology could give us a golden age of music for artists and their fans. 

Music via NFT

Many of the DLT-based projects that are currently changing the industry are based on the concept of bringing fans and musicians together. At their core, these platforms focus on the user experience for both audiences as they create larger and more active communities where fans become marketers. In some of these models, fans are motivated to fulfill this role as they can profit as the artist’s audience grows.

These platforms also include non-fungible tokens, or NFTs, as a method of recording ownership of items, giving artists the ability to release their music on the blockchain. This model ensures that artists can regain full control over their work and decide ownership issues on their own. For example, these users can sell albums as NFTs, where the sale of stakes can provide collective ownership. Using this model, musicians take on the role of business people and promote true art exactly as they see it.

Through NFTs, artists also gain access to new sources of income. One example of this is that musicians can automatically receive a share of the profits when others use their work to release remixes. Alternatively, artists can also receive micropayments for their streams, as well as take advantage of NFT minting, opening the door to several additional possibilities.

Local talent will also benefit from new opportunities for international discovery, opportunities associated with improved algorithms and the underlying inclusiveness of music platforms based on decentralized technologies. Not to mention, crypto payments will provide near-instantaneous transactions when a fan turns on their music.

In addition to NFTs, utility and other cryptocurrency tokens play an important role in the development of decentralized music platforms. Typically, native platform tokens provide both fans and artists with an easy way to influence and reform the process of creating and sharing music.

Independent market

Now the only missing piece is the platform that will bring these concept ideas to life. This process has already begun with several ambitious young projects, including Tune.FM.

Tune.FM has risen with a mission to create a global independent music marketplace. Here artists will be able to collaborate, share their music and communicate directly with their fans. Artists will have access to a hybrid license that will allow them to stream, sell, publish and stream music, and accept fiat and cryptocurrency payments through the same platform.

As the backbone of the marketplace, Tune.FM relies on the JAM token to enable micropayments directly between fans and artists, ensuring they earn more than they could with a traditional streaming and download model. The JAM token also serves as an incentive for streaming and music matching. As an incentive, JAM will create a win-win system where all members are fairly rewarded for their efforts and can continue to benefit from the entire Tune.FM ecosystem.