In recent years leading up to the end of 2017, the global financial industry has been disrupted by the emergence of cryptocurrencies, with Bitcoin taking the lead. Cryptocurrencies run under Blockchain Technology, which is said to be a more secure and faster way to do financial transactions.
As with new technologies, there is hype on Blockchain Technology. Naysayers claim that cryptocurrencies have no intrinsic value and it’s merely a bubble waiting to burst. However, beyond the infancy stage, Blockchain technology is already branching out to different industries and many are optimistic at the new opportunities that it presents.
In fact, there’s already talk on how it can change the music sector. Below are some of the features of Blockchain Technology and how it addresses the current problems in this industry:
1. Universal, distributed database.
Everybody has access to the database. Any changes that were made is available for everyone to see. Because everybody has access to it, anybody can verify and confirm any transactions made within the blockchain platform.
There really isn’t a single, global database for musicians. There was an attempt in 2014 but fell through with its own issues. Now that we have Blockchain, a single database issue will no longer be a big deal, nor do we need to build a new one because the blockchain is built for this objective in the first place. In a single database for musicians, the industry becomes truly data led, laying down all information such as artist, writer, producers, royalty distribution and more. It becomes easier for everybody across industries to collaborate. Win-win situation.
2. Peer-to-peer transmission.
Peer-to-peer or P2P has its bad reputation owing to copyrights violation. But despite that, people seem to think the positive outweighs the negative.
What happens in P2P is that it allows sharing without an intermediary. Musicians highly benefit from this platform because it eliminates the middlemen. In addition to this, it allows anyone to share their work with a large number of audiences without having to be restricted by issues on agency support, publishers and the like. While the problem with small musicians before is on how to release their music in the market, in the Blockchain, they can now do so with ease.
Although one of Blockchain’s main feature is anonymity, users may still opt to publish their own work to clearly associate them with it. A user is identified with a 30 or more alphanumeric characters that become unique addresses. This becomes your proof of identification that cannot be copied or hacked.
When musicians acquire their own address, that becomes permanent. Hence, any work released under that address will forever be associated with that identity.
The Blockchain works in “chains”, so every move is connected chronologically with each other. Once a transaction has commenced, it cannot be reversed and is out there for everyone to see.
This is a huge advantage in the music industry where copying or “stealing” work is a problem. Once the information is out in the Blockchain, the owner or address that is connected with the work cannot be changed.
Sounds promising, right? And soon, it will no longer be theoretical. A Singapore-registered startup, oSerenade.com Pte. Ltd., is already on its way to launching the OSCOIN – a cryptocurrency token for the music industry. Their hope is not only to pioneer the solutions to the problems mentioned, but also to create a seamless and secure global ecosystem of financial transactions for the music industry.