How Blockchain is Setting the Stage for Musicians

Music is constantly evolving — just over the last decade, we have experienced massive innovations that have changed the way musicians create and distribute songs, which also transformed how the audience listens to them. However, there is another technology that will help musicians create a new version of this industry. This time, it will become a thriving space, thanks to blockchain-based platforms like Inmusik.

What is a Blockchain?

A blockchain is a place where transaction records and digital data is stored. What makes it unique is that it is decentralized, which means that no single company or government owns it or controls it. What keeps it running is a network of participating computers that has a copy of the entire ledger that continually updates, making sure that all entries are verified and true. Its nature makes it different for anyone to hack it — in order for an entry to be added or altered in a blockchain, everyone who has a copy in the blockchain must agree to its validity.

Because blockchain relies on a community to make sure that every entry is valid and doesn’t have a single point of failure, it makes every possible transaction streamlined. For example, there would be no need for people to rely on payment processors or banks that will keep a record of their financial transactions, since they can count on the blockchain network to track money that goes in and out of their accounts. People would not need to pay for data storage servers to keep bulk personal files, because they can count on a blockchain to store and prevent any changes to their data. You can even count on blockchains to help you transact directly with vendors or buyers and ensure that you will get exact products or payments on time.

Numerous industries are already jumping on its potential, and music is one of the industries ripe for blockchain adoption. Right now, several decentralized applications, such as Inmusik, are poised to use the blockchain technology in order to change people transact in the music industry.

What Do Musicians Gain From Blockchain?

Decentralized apps, like Inmusik, can drastically change the way musicians earn and interact with their audience, thanks to its unique economic model. Inmusik is set to change streaming by offering a revenue stream to artists and musicians using blockchain and cryptocurrency. By making data decentralized and using tokens, musicians can finally make a living out of making music.

Inmusik’s platform allows users to enjoy unlimited streaming with a monthly subscription. However, what makes it special is that users can vouch for their favorite tracks and make “bets” by staking cryptocurrency tokens that have a cash value. In return, they hold shares in the future earnings of the tracks that they support. In addition, users can also earn via the platform’s referral program.

This is going to cause massive change to the way musicians earn — apart from earning per play, musicians also gain massive payouts when they receive large token votes from users. Popular songs on Inmusik can generate at least 5 times more than what they would earn from today’s streaming platforms. Plus, unlike streaming platforms, there is no limit here as fans can stake as much as they like to own a bigger piece of future payouts. With a active fanbase, artists could earn an equivalent of $0.01 to $0.10 per stream, or maybe even more depending on the number of token votes that users put on their tracks.

This also changes the way different audiences consume music. With the ability to directly support artists through votes and vouch for fresh tracks using cryptocurrencies, they begin to understand that every track that they listen to has monetary value and that every stream that they make can be rewarding. With listeners acting like investors and getting rewards every time they support an progressing artist, Inmusik’s model sends a boost to the community, knowing that they can have a share from a hit maker’s combined revenue. Because vouching for artists entails an actual cost, listeners will actively curate songs that are worthy of airplay, which generates a fighting chance for those who are new to the scene but are capable of producing quality music. This helps musicians gain traction and select their ideal audience that can make their songs go viral.

Token Systems and Friendlier Platforms

With blockchain-based apps like Inmusik focusing on real-life use of cryptocurrencies, musicians and listeners get to know how token-based ecosystems work. Musicians greatly benefit from getting steady payouts, while listeners as investors get to know how cryptocurrencies work and contribute to making them mainstream.

Inmusik is one of those decentralized platforms that use two types of cryptocurrencies: the Inmusik Tokens (Sound Coin) and the Inmusik Cash (IC). Both of these tokens have unique function for users, but together, they make the platform scalable and easier to understand for users, especially those who are going to be introduced to blockchain for the first time. Both of these tokens has inherent cash value and can be digitally stored using digital wallets.

When users subscribe to Inmusik, a percentage of their subscription fee is converted into the $ound token, based on market rates. These tokens are used to cast votes for choice listener tracks. Each time a user casts a vote, he gets bonus tokens, which he can use to vote for other tracks. If the user wants to have more tokens, he can purchase it directly from Inmusik or from the open market.

Inmusik Cash (IC) is a coin Inmusik uses for artist and fan payouts — since the cryptocurrency market can fluctuate, users can get discouraged with the amount that they are going to receive. To solve this, Inmusik Cash pegged to the US dollar. A single IC token will always be equal to $0.01.

Having two tokens appeals to all types of all blockchain and cryptocurrency users. This will work for those who are looking to participate long-term on Inmusik, with the expectation that the value of their $ound will increase over time, especially when the platform and the technology behind it goes mainstream. At the same time, those who are looking at Inmusik as a source of regular revenue stream and would like to avoid the value risk associated with cryptocurrency market pricing can benefit from the currency.

Royalty Payments

Musicians traditionally rely on music rights organizations to collect and store data about song playbacks, streaming channels, music usage, and so on. However, most of these organizations are not equipped to perform their tasks well — common issues range from failure of collections to depositing payments to a wrong bank account.

Inmusik aims to solve this by efficient data storage, which blockchain offers. Apart from making sure that artist data collated is accurate by asking musicians to have a proof of identity. At the same time, song uploaders can also tag every person that contributed to the song (i.e. producer, songwriter, band members, etc.). This ensures that every collaborator gets fair and timely compensation through the use of smart contracts that is embedded in every song. By using smart contracts, all artists turn every work that is protected with intellectual property into a real financial asset that pays.

Smart contracts are not just ink and paper contracts that anybody can forget about — these digital and lightweight agreements linked to every song uploaded on Inmusik makes sure that payment is automatically collected and distributed to all musicians tagged in an uploaded music. This means that whenever you hit the Play button on Inmusik, an artist gets his end of the bargain.

Better Traction for Labels and Distributors

Artist management centers and distributors can also enjoy massive benefits from blockchain, especially since there is less friction in creating a solid revenue stream for them as well. With a better insight on how listeners participate in an artist’s growth, they can focus on creating better campaigns to make their supported artists go viral. Because of the social impact that platforms like Inmusik can make, record labels are incentivized on helping out talents launch their singles faster with an actively participating audience in mind.

Better Music Community

Ultimately, Inmusik and the rest of blockchain-based music platforms out there aim to make the music industry the way it should be. With a revenue-generating platform, all musicians can finally claim that music creation is a full-time job. Listeners, on the other hand, recognize that music listening, curation, and content sharing can be a rewarding experience. This creates a win-win situation for everyone in a transparent ecosystem.

This can go a long way for future musicians. With blockchain around, producing and distributing music will not be as difficult as before, with supporting industries more invested on how artists can continuously create quality music. It’s no longer far-fetched to think that a larger range of music producing and financial services will be made available to musicians once blockchain technology receives mass adaptation in the industry.

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