Blockchain For The Music Industry - Able Breaking Impasse Many Musicians
Blockchain For Music Industry. Since Nepster appeared in the year 2009-2001, is quite difficult for musicians abroad to try to make a living from music recording industry. Sales of music CDs fell, illegal downloads increased, the payment of legal music streaming platform is also low. In addition, there is a shift in the track just buy single songs instead of buying the entire album.
Nepster is a site sharing mp3 using peer-to-peer. Founded first by Shawn Fanning in 1999. Napster site should then be closed because of problems with copyright infringement.
Napster's presence is considered more harmful music industry, especially for musicians. Of course, it relates to copyright, and also related to the distribution of royalties. In 2001, a court decision requiring Napster closed.
Napster also pay songwriters and copyright owners by 26 million in compensatory damages and $ 10 million in royalties. However, with Napster's presence, has affected the music industry, particularly for the music industry abroad.
Marcus O'Dair, a popular music teacher from Middlesex University wrote an article in theconversation. He wrote about how technology can help Blockchain the musicians can make a living from music. He highlighted since Napster's presence, has affected the music industry. The musicians of this music, it becomes quite difficult to make a living.
A number of music industry then that many are turning to use special technology as a solution to these problems. Imogen heap using mycelia. Benji Rogers, Pledge Music, launched Blockchain Dot Music, Music Ujo, Blokur, Aurovine, Resonate, Peertracks, Stem, and Bittunes. No lag, Tatiana Moros also even create their own crypto coin for the sale of his works.
Overall on projects such music, basing on Blockchain technology. Blockchain technology, it has become the backbone of Bitcoin, as well as other cryptocurrency. Blockchain, consisting of a series of data blocks are arranged using cryptography. Compiled by chronological order. And use two key features.
All stored in Blockchain, will be stored in a neat, will last forever, can not be modified. Then, all the data and information stored in it, is distributed centrally. With peer-to-peer, allowing these copies are stored independently of each other.
In this way, the security of the data and information stored to be quite safe. Almost hard, and could be said to be almost impossible to penetrate. Blockchain technology is also widely regarded able solution diverse problems facing the industry. Such as banking, the diamond trade, the world fashion industry, even though the owner of an online gambling site.
Marcus O'Dair mentioned in the article, that Blockhain technology also has the potential to be able to organize society. And even this technology, could be useful in the music industry, can help the musicians. Marcus O'Diar also tried to explain how the technology blockchain for the music industry can help the musicians.
Proof of Ownership of Copyright
One of the main problems faced by musicians is because as long as there is no comprehensive database that can show real proof of copyright ownership. According to Marcus, there are several databases, but are not able to detailing each song. So when there is an emerging tracks, the database details often generate detailed information that is not always suitable.
Vinay Gupta, one that has been quite popular in the crypto community, never talked about the same thing Blockchain. According to him, Blockchain is about two things, database, and networking. If copyrighted music entered and recorded in Blockchain, using fingerprint-based cryptography such as barcode, then update the data information will be accessible to all users. So it is not retained by the gatekeepers of certain centralized system.
Royalty payments
The second problem that is often encountered is the matter of payment. Listeners can access music tracks with just one click only. However, based on reports from Rethink Music, royalty payments that could take years. Smart Contract, can be implemented into Blockchain using the software. Smart Contract can split the royalties with the agreed proportions. Even when the track as soon as the song is downloaded, or when streaming.
When compared with existing micropayment, to say it can not be and it is difficult to do. However, if the system was built using technology cryptocurrency like Bitcoin, it can be a facilitator of payment. Even if the payments amounted to only a fraction of a penny only.
Counting mechanism Royalties
The third issue is about the mechanism used for the payment of royalties. Often, the mechanism used to calculate how royalties to be paid fairly opaque and unclear. Marcus explained, the income of musicians often ended in "Black Box". And it is beyond the reach of the musicians and composers. There is no clear mechanism whether it belongs to the royalty musician or creator of the song.
Marcus then explained in the tradition of non-disclosure agreements, for example, a musician or manager, can not actually audit the royalty payments. Because they are equally unsure about the amount of the amount they should receive, semanjak mechanism is often unclear.
Capital In Future
The latter problem is a matter of the cash capital must be owned by a musician in order to create new music in the future. Marcus O'Dair explained, there is often a perception that explains that the musician or music artists no longer need a record label. In fact, they also need funds to be able to compete commercially. Musicians also still need the support of a major label. Three major record labels that still exist today such as Sony, Universal, and Warner.
By using Blockchain technology, can be used to help find new funders. Of course it includes also to seek and attract investors. This tendency can also be seen on how a startup founded. The investor in a startup, it will usually be given a reward of income that will be earned in the future. These revenues can also be monitored, and can be paid automatically through a smart contract.
Because of the transparency and easily track transactions, this technology can also support crowdfunding. So when a musician issue shares, then shares it can also be melted in the future after no income.
About how successful crowdfunding can be seen as the success of DAO (Decentrelised Autonomous Organisation). DAO can reach up to millions of dollars of funding. But some time ago, DAO system is still vulnerable to an attacker managed to gain millions Ether of action. Bitcoin also experienced tragedy when a scandal Mt GOX. Despite the scandal that is outside the context of Bitcoin, because Mt GOX acting as intermediaries or third parties.
Related to that, Marcus also assume that Blockchain technology also leaves potential risk. However, Blockchain indeed been able to support the banking industry, and even the government. Some industry has also invested to deploy this technology with a significant amount.
For example, Stem, online streaming platform companies have even been increasing its investment amount of 4.5 million dollars in the year 2016. And technically, Blockchain technology for the music industry have the potential to transform the music industry.