Twenty years after peer-to-peer (P2P) file sharing decimated the music industry, blockchain is emerging as a new P2P technology that could rip the industry anew.
But this time, the revolution promises to be different. Whereas digital and illegal downloading once wreaked havoc on the industry at large (from music creators to record labels, none were spared), a blockchain-based model for music pledges to boost the fortunes of artists. Industry middlemen and gatekeepers, however, could be in danger.
This is according to the vision proposed by SingularDTV, a company that is developing an entertainment app ecosystem on top of Ethereum — the blockchain computing platform for launching decentralized apps. Through its apps, SingularDTV hopes to enrich and empower artists, and rewrite the rules of the music and broader creative industry. Some of key steps its taking to accomplish this include:
- Creating a token-based economy where value is derived from an artist’s work.Tokens are the native crypto-assets of a blockchain app. They are powered by smart contracts (code-based financial agreements) that are programmed into Ethereum. When an artist tokenizes, they’re turning their intellectual property (IP) into a financial asset, so an artist’s token reflects the value of their creative output. Those who buy into an artist’s tokens buy into owning a share of the artist’s creations and its revenue flows. The more people who consume the artist’s creation, the higher the value of the token.
- Enabling artists and consumers to earn money from selling and buying tokens.Artists can raise money through a token launch, which is similar to an initial coin offering (ICO). Here, anyone can buy the tokens upfront. The majority of the windfall will go the artist, and the Read More Here