Before the digital era came, listening to music was a whole different process. You would buy CDs or tapes and then have devices for playing the music. Then MP3s and devices like that came, which was a huge step up as you could have tons of music on a device that fits into the palm of your hand.
Nowadays we have things like Spotify and Apple Music, where you do not need a whole different device, everything is on your phone and with the click of a button you can play whatever you like.
Some argue that enjoying music was a much more thorough process back then. Those who say this argue that back then, music was not an instant thing. Instead, they would put on a vinyl or insert a cd, and they would listen to the whole album without stopping. While there is some truth to these claims, it would be wrong to say that this is not the case in this day and age. Numerous artists release albums these days, and listening to music this way is something that occurs in this day and age, but with a little twist.
With the introduction of blockchain technology into the world, a lot of things are changing and the music industry could change fundamentally as we know it. With the emergence of the blockchain and cryptocurrencies, payments and transactions have changed completely. If you would like to learn more about crypto and how it works you can check out cryptomeister for many guides on the world of crypto. Now, let’s dig deeper into how blockchain technology could work in the music industry.
Crowdfunding using The Blockchain
The way fans support their favorite artists is by buying their records or streaming their music, but the problem with that is that typically the artists end up with the least amount of money and they are the ones making the music. Most of the money goes to record labels producers, managers, and other companies. Blockchain technology could help in this regard with the use of crypto and NFTs for crowdfunding. This way the money goes directly to the artists and the blockchain can ensure a record of the transactions.
Instead of sharing their profits with a record label, artists can get the money from crowdfunding directly, without any middleman to collect a certain percentage of profits from their hard work. For those who don’t have experience with using cryptocurrencies, the procedure goes like this. Those who want to contribute to someone’s hard work are sending digital currencies to the artists’ e-wallet.
The time needed for processing these transactions is much lower than in the case of bank transactions. When you think about it, you will see that this is the case. Crypto transactions are usually completed in a couple of minutes. When you compare that with the time needed for bank transactions to complete, which can take even a couple of days, you will see that this is a much faster way to get money.
Tickets in the Form of NFTs
The problem with tickets nowadays is that it isn’t very difficult to cheat the system. People resell them or they use fake ones to slip through the cracks. But with NFTs that could change completely, you can’t fake an NFT as everything is recorded within the blockchain. This helps with verification issues and you won’t be able to cheat your way in. And another big plus is that you have a piece of memorabilia and it can be an asset. With everything being digitalized and NFTs becoming more and more popular, it isn’t surprising that more and more concerts start using tickets in the form of an NFT.
The same goes for digital currencies since there’s no way to be scammed by someone who sends you Bitcoin or Ethereum. You will receive the exact amount you are supposed to, and there’s no way for you to be prevented from collecting the crypto you have received. Another good thing to know is that the fees are quite low, and you don’t need to worry about this aspect at all. The fees are usually around 1% or 2% percent.
Memorabilia is a huge part of the industry, which is why auctions are hosted all the time where people bid on an item from an artist’s collection, or maybe something like a guitar from a famous artist. Millions and millions of dollars are spent at these auctions by people who may be huge fans or are just looking for an investment that will appreciate over time.
With NFTs becoming more popular investments than physical items, an interesting way in which blockchain technology and NFTs could be incorporated into music is by hosting auctions where instead of a physical piece they sell off an NFT. Crypto and NFTs appreciate over time more than physical memorabilia and people invest huge amounts of money into them. These types of auctions where an artist sells off NFTs could be a really interesting sight.
One more thing we want to shine a light upon is the concept of instant micro-payments. When we say this, we are talking about the possibility of the use of the blockchain and smart contracts Blockchain smart contracts offer the opportunity to optimize some automatic payments. Therefore, it becomes easier for you to avoid the middleman once again, which means that the percentage taken for the system is going to be as low as it can be.
With the automation of this process, you can subscribe to a certain artist and send frequent funds to help the crowdfunding in certain periods. Also, you can preorder all the albums or singles before they actually drop and patiently wait until they land in the software you’re using. Another important thing to have in mind is that this approach has opened the door for numerous possibilities on how the music industry will function in the future.
If this trend stands popular for the next decade, we can see that the need for record labels will not be as high as it is today. Naturally, today’s need is nowhere near the level we’ve had in the future.
This is the way for you to predict the future needs of the market and overall industry.
The Bottom Line
We already see cases of this kind of blockchain use being incorporated into the music world. It is important to mention that these are just the early stages of blockchain development and as it advances more and more, it is interesting to see what kind of uses could come in the future. Many industries have started using blockchain technology and the same can be said for the music industry. Right now we just have to wait and see what comes of it in the future.