Will Blockchain Make Music Industry Transactions Secure?

At its core, blockchain is all about improving the process of many transactions. This includes everything from online shopping to home buying. So, will blockchain make music industry transactions more secure too? Today, we’re taking a look at five reasons why blockchain can make transactions secure, and why this would benefit the music industry. Want to know more? Keep reading to find out just how blockchain can shake up this space.

Smart contracts

We’re starting here because the music industry revolves around contracts. Using blockchain, smart contracts can be created. These contracts are automatic and allow all parties to skip the middleman. According to Blockgeeks…

“Smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.”

Harder to hack

When it comes to the security of transactions, there’s a lot of anxiety about being hacked. We aren’t going to tell you that it’s IMPOSSIBLE for blockchain to be hacked but it isn’t likely. Since everything in the blockchain is public and everyone can see changes made, hackers are discouraged. There are only a few known ways to attack a blockchain. Furthermore, these attacks are preventable when the right steps are taken.

No central authority

There really hasn’t ever been a central authority that holds data in the music industry. For decades, people have been talking about the fact that there should be a central database. However, with so many people involved in the space, it’s not something that has been accomplished. Anyone trying to track industry information ends up with incomplete or inaccurate data. By using a public system like this, everyone plays a role. All parties are responsible for making sure the right information is available.

Real-time updates

Let’s talk a little bit more about data. The fact is that it’s very difficult to keep databases up to date. This especially true in the music industry where things are always changing hands. Blockchain eliminates that problem. Every update happens in real time. This way, better decisions are made. They’re based on up-to-the-minute and verified data.

Transparency

I know what you’re thinking: is it really a good idea for all these transactions to be public information? Actually, it is. Many artists are struggling to make money. This is in large part because of the lack of transparency in the music business. As industry expert, Panos Panay explains, “Right now if your music gets played on the radio or in a restaurant or on a streaming service, it takes a minimum of 18 to 20 months to get paid, and when you get paid you have no idea if that is the right or wrong amount.” Making these transactions public allows artists to know when their work is being used and if they’re being paid fairly.

Bottom Line

Yes, there are many ways that blockchain can make music industry transactions secure. The systems that companies and artists are using now simply aren’t working. Blockchain makes it so that everyone can be involved in transactions. Knowledge about what’s going on is for everyone, not a select few. Making this change and moving transactions to the blockchain is necessary. It can solve problems that have been pain points in this business for years.