The Chainsmokers and other artists are reshaping the music industry with blockchain technology
The Chainsmokers are one of the best known music duos. Both composers have received numerous awards for their music tracks since 2004 when they released the song #Selfie. From that moment they began to collaborate with other artists, such as Halsey or Coldplay, which brought the group to success. But now that the music market is overloaded with content, some artists, among the Chainsmokers, wanted to bring something new to the industry and merge sounds with cryptocurrencies. Here’s how this innovative change will become a revolution for all artists.
What did the Chainsmokers do?
In early 2022, the duo released 5,000 NFTs (non-fungible tokens) for free, which provided fans with 1% of streaming royalties from their latest album, So Far So Good. In addition to this ownership percentage, fans were given priority access to concert tickets and merchandise, which is nothing new in the music industry. However, it is the first major group to experiment with NFTs.
The Chainsmokers have teamed up with Royal, an NFT music market that previously collaborated with Diplo, another smash hit in the music industry, and Nas, a famous rapper. Although the Chainsmokers were the first to freely offer such NFTs, they said the move was to harness “disruptive new technology in an effective way that really shows what’s possible” in the music industry.
The problem of property rights
Another example of an artist transforming music is Wu, the leader of the band Echo. He has always been an important player in the movement to change the stakes in the Asian music industry, for which he founded iNDIEVOX, the first DRM-free music store in Taiwan. It therefore helped to remove digital rights management since it restricted the property rights of consumers who purchase digital music.
This process is especially crucial for independent music creators, as the royalty payment process is quite difficult for those who wish to venture into the music industry on their own. So, Wu is using Bitmark digital property blockchain to provide a solution to this tedious process of song rights and royalty payments. Now, artists can register their creations on the blockchain to more efficiently track who owns what rights and transfer their assets more easily.
Why blockchain-based streaming platforms are better
There are many other problems with the current music system, such as:
Intermediaries, such as record labels and radio companies, receive a special share of artists’ royalties due to high administrative costs;
Centralized streaming services that have an algorithmic bias and give some artists exposure while others remain inaccessible;
The lack of a global copyright database has led to a complicated publishing and registration process;
But since blockchain technology is based on decentralization, security and transparency, it is the perfect tool to change the music industry forever. Now the developers have changed the blockchain platform and promoted this technology as more than just using it to learn how to buy cryptocurrency. These third parties can be eliminated through smart contracts and music streaming platforms can become decentralized. Therefore, the power rests with the artists as to what they do with their music.
Now, managing copyrights and intellectual property will not be so difficult, as blockchain can help manage music rights securely through transparency of music property rights and royalties. Music creators can have a peer-to-peer database where they can store detailed music information so that the right people can be compensated for using the content.
Smart contracts can solve this remuneration problem with instant micro-payments, where artists can define the conditions under which music can be downloaded and used so that they can be paid fractions of a penny for each sale or stream. This way, instead of waiting months for royalties to transfer, artists will get them in seconds.
Finally, this solution will foster a closer artist-fan relationship. As the Chainsmokers said in an interview, it was about “connecting more deeply” with their fans and not about profit since they are one of the highest paid music duos in the world. story to date. They’ve also agreed that fans will sell their NFTs on the secondary market, and while they won’t receive a dime on those sales, the 7.5% secondary fee will be directed to the 14 songwriters. who wrote the songs on the So Far So Good. album.
How other companies are changing the industry
Many other companies have seen great potential in the decentralization of music and the transparency of music releases, so now more and more companies are combining music and blockchain to create something useful for artists. For example, the company Sound is creating a way for fans to interact with their favorite artists on its Web3-based NFT platform. When artists release a new song, the very first release features specific numbers that allow artists to sell their NFTs for more market value. It also encourages people to buy their compositions since they can engage with music composers.
Then we have Mediachain, which is now part of Spotify’s leading global music platform. It is a peer-to-peer database where artists can share information about their music between different organizations and apps to get more visibility. It also ensures that artists are paid fairly and issues smart contracts with musicians to share their royalty stipulations without other third parties being involved.
Finally, the Musicoin Foundation is a music streaming platform that enables the secure and transparent transfer of music, encouraging the creation, consumption and distribution of music. The company provides users with a token called MUSIC, with which they can transact to support their favorite artists and make other music-related purchases. Like most blockchain-based technologies, this activity eliminates the need for third parties, so 100% of all streaming revenue goes to artists.
What do you think of this novelty? Can blockchain help artists? So far, we find that most blockchain solutions are also beneficial for music creators and fans, as they fully support them financially, and no other entity can take advantage of independent music artists.