Smart Contracts Are a Great Way of Rewarding Artists for Their Work

The blockchain has done wonders for artists. In a way, the blockchain has proven to be the great equalizer. Imogen Heap, the British singer behind hit single “Hide and Seek” (later famously sampled by Jason Derulo for his single “Whatcha Say”), defied record labels by using the blockchain-based Ujo platform (running off the Ethereum blockchain) to debut her song “Tiny Human” back in 2015, asking for just 60 cents per copy.

Essentially, Imogen saw the power of harnessing blockchain technology to cut out the middlemen and reap the rewards in the process. In a way, she was able to pass the savings onto her fans. The artistic gatekeepers have lost their grip. No longer must an artist acquiesce to a label or publisher’s arbitrary demands; the power is back in the hands of the people.

Elsewhere, indie darling Amanda Palmer (of Dresden Dolls fame) famously (or infamously, depending on your point of view) used crowdsourcing to raise a record-breaking $1.2 million on Kickstarter back in 2012 for her then-upcoming album/tour. From that point on, the proverbial floodgates opened. And it wasn’t just indie trendsetters, either. In fact, major artists such as TLC have even got in on the action.

So, you might be thinking, What’s all this got to do with smart contracts?

For a long time, comic illustrators have been at the behest of the publisher they work for. The art is usually (although not always) commissioned for a set fee. While this can obviously be lucrative, it is often capped (with some exceptions). Problems can occur, however, when royalties get hoarded or otherwise severely watered down thanks to techniques perfected by Hollywood accountants.

Worse still, an artist might have to pay through the nose to get a case settled, often costing them much more than the payout is worth. As is often the case in any kind of legal battle like this, the only people who win are the lawyers…

But this is where the blockchain comes in…

By setting up smart contracts through the Ethereum blockchain (or similar platforms), artists can be guaranteed that they are paid what they are owed. Imagine that: An artist never having to concern themselves about not being paid by shady publishers! By holding the money in escrow until the project is completed, artists can automatically unlock payments as the project is completed. Conversely, companies who hire contractors can use milestones to ensure that an artist is following their creative vision; if the artist is missing the mark or not fulfilling the company’s wishes to their liking, they could cut their losses early without jeopardizing the project’s timeline and funds.

However, remember Amanda Palmer from earlier? You might say to yourself, “How can one artist get so much support behind her?”

Certainly, this was a hot question back in the day.

The thing is, Amanda had a dedicated underground following that negated the need for a major label. Although she had been signed at one point, she felt the old way of doing things was proving to be a hindrance; she had little control over how her music could be produced and distributed. Crowdfunding flipped the script in this regard. Similarly, artists can now break free of their compulsion to work for established publishing groups; moreover, they can now channel their creative juices to create bold new characters and designs without having to answer to a firm or committee. In other words, artists can now have complete freedom — if they so choose.

By harnessing the immense potential of the blockchain, artists can now become their own boss. They can hire their own writers, marketers, and anything else they think will help improve the success of their artistic creations. Best of all, artists can subcontract certain tasks for a flat fee, meaning they can keep most of the royalties earned by the work they have created and sold on the blockchain. Additionally, if an artist creates a popular series or character motif, they own the rights to said character, meaning they can expand the universe however they wish, potentially creating a snowball effect that could see an artist making bank.

Think of it like the Harry Potter series, in which J. K. Rowling created the Harry Potter character for her book series. Undoubtedly, Rowling was initially only looking to get the book published, and it’s unlikely she could even seriously imagine the licensing bonanza that was in store for her. Just think about it — the movies, the theme parks, the expanded Harry Potter Universe. Essentially, Rowling’s work had kickstarted a franchise of epic proportions.

Now, just imagine if Rowling was commissioned, say, $77,000 to create the series, with all rights transferred to the publisher after completion. At a dollar per word (and with Rowling’s precarious financial position at the time), one would not blame Rowling for leaping at the hypothetical opportunity. Of course, with the benefit of hindsight, we would know this to be a terrible financial blunder on her part, but thankfully she was able to fully reap the benefits of her work, becoming a billionaire before she was 40.

Artists get screwed over enough as it is; however, by using the blockchain to secure royalties, artists can do their work without worrying about getting the rug pulled from underneath them. Through smart contract, artists need not concern themselves with pleasing a company or catering to a certain demographic; rather, then can follow their own artistic vision. Best of all, they can rest assured knowing that their work will be monetized as fairly as possible, including getting royalties from second-hand trades.

To the artists out there who want to seize the day and make the world their own, smart contract extends its hand to you. Create something magical and unique — and get paid for it — because you deserve it!