How Blockchain Is Revolutionizing Music Ownership For DJs And Producers

The internet has had a drastic impact on the music industry, changing how music is listened to, shared, and profited from. The decentralized nature of the blockchain is having a further impact on music and artists, with the potential to create a fair music ecosystem.

Blockchain technology, which is mostly associated with cryptocurrencies, has many implementations. According to CryptoNews KR, it is also used for memecoins, which once started as a joke centered around internet memes, and have grown into a billion-dollar fragment of the market. 

Read on to discover how blockchain has been applied to the music industry and how DJs, producers, and musicians can benefit from this innovative technology. 

Blockchain’s Role In The Music Industry

Blockchain tech is already bringing about significant changes in the music industry, transforming how music is consumed and distributed. 

Blockchain is a decentralized, transparent, and secure database that records various transactions across multiple computers. The nature of the blockchain means that the records are not controlled by a single party, and all transactions are completely secure and can’t be tampered with. 

In the music industry, blockchain is a platform for artists to distribute music to their audiences, skipping third parties like streaming services or record labels. It is an equitable system where artists can own and control their music, giving them a greater share of potential revenue than if they were to go the conventional record label route. 

The Benefits Of Blockchain Tech For DJs And Producers

Blockchain tech offers many benefits to all users, however, the transparency it provides is the main advantage. Most musicians struggle to track royalty payments, but on the blockchain, all transactions are recorded and can be publicly viewed. 

Other benefits include:

Rights management

The blockchain network enables decentralized licensing and also streamlines rights administration. Music rights have always involved several third parties which ended up complicating the process and causing delays. Through the blockchain, the song’s ownership, licensing information, and metadata are securely stored on a public ledger. 

This transparent system means DJs, singers, and producers can manage their rights and be compensated for their work. 

Song ownership and copyright management

The biggest impact that blockchain has on the music industry is the role it plays in establishing song ownership. Musicians can be clearly established as the owner of a track which can be publicly viewed on the ledger. Copyright management becomes much less complex and smart contracts can be used to automate royalty payments.

But, fans can also become micro-investors in particular songs. This is achieved by purchasing tokens. This strategy allows fans to also profit from their favorite songs.

Transparent payments

In the past, royalties distribution has not always been very transparent or fair. Artists are often receiving incorrect amounts or no money at all. 

Blockchain technology addresses this issue by providing a clear transaction history where payments can be tracked in real-time. Smart contracts on the blockchain network enable automatic royalty distribution according to signed agreements, ensuring that artists get accurate, fast payments. 

Fair compensation

Most musicians and music producers will be able to share stories of the struggle to get compensated fairly. Streaming services typically only pay artists a small percentage of the total that their music brings in. 

Blockchain technology overcomes this challenge by guaranteeing that each artist gets fairly compensated for each stream. There is no longer a need for a middleman to manage royalty payments. 

Improved fan engagement

A lesser-known benefit of blockchain in the music industry is how it can bolster fan engagement. Fans are able to interact with their favorite artists through the blockchain by buying merch or concert tickets via NFTs, without ever having to deal with a third party. 

As mentioned, it also allows fans to purchase tokens, which gives them partial ownership of a song. This benefits artists wishing to finance future projects and also gives fans more access to their favorite performers. 

Artists Who Have Successfully Implemented Blockchain

Blockchain is still in its infancy in the music industry, but some renowned artists have already realized its benefits and used it to their advantage.

Imogen Heap

Imogen Heap – a Grammy-award-winning artist – has started a project titled “Mycelia”. This blockchain-based project has introduced the concept of a “Creative Passport”. This system allows musicians to verify their work and identity, facilitating smooth transactions across various platforms. 

With this tech, artists get quicker payments, proper credit for their music, and more control. Mycelia blends transparency with the complex nature of the music business, and Imogen Heap has created a novel approach for musicians to manage their rights and interactions. 

Björk

Björk, an Icelandic and global icon, also successfully adopted blockchain tech in how she distributes her music. 

She partnered with Blockpool, a British startup, which allowed her album “Utopia” (2017) to be purchased with cryptocurrencies. By incorporating blockchain, Björk has changed how her music is sold, allowing fans from across the world to buy her music, even in countries with restricted traditional banking systems. 

She also investigated a reward program for fans that rewards crypto tokens to those that are actively engaged.