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How The Blockchain Technology Can Improve The Music Industry

By donniezeb | my-crypto-opinions | 28 Oct 2022


The music industry is changing at an unprecedented pace, and so are its business models. While artists receive a much smaller share of the revenue from streaming services like Spotify and Apple Music, they’re still able to make money thanks to touring.

However, there was always a problem with this model – it wasn't fair to artists. They were often forced to tour in order to earn enough money to live on while their fans could listen to them online.

With technological innovation like the blockchain, however, that situation has changed. Artists now have the power to take control of how their music is shared by making their own content available on digital platforms. This is what we mean when we say that blockchain technology can improve the music industry.

Here's everything you need to know about how blockchain technology can help musicians, and how you can use it to make your own art more accessible.

How to Use Blockchain to Improve the Music Industry

One of the biggest problems facing musicians today is the high cost of recording and distributing music. When artists release an album or a single, they not only have to pay for the production of the song itself but also for the packaging. And because most people buy albums rather than singles these days, artists have to pay royalties to labels and distributors for each sale.

In addition to paying for the physical products, artists also have to spend money on marketing campaigns, which can be expensive. As the saying goes, if you want to go far, go alone. So instead of going out into the world and begging for fans' attention, artists should focus on building a strong fan base. That way, they'll get rewarded for their efforts.

But how exactly do you do that? Well, there are two ways: one is through direct sales, where customers who love the artist purchase merchandise directly from them. The other is through crowdfunding, where fans pool together money to fund the creation of new works.

Now, let's talk about why both of those strategies work. First, consider direct sales. In this model, you sell something directly to consumers. If someone buys a product from you, it means they're interested in it. It's easier to get someone's attention when you give them what they want.

Secondly, consider crowdfunding. With crowdfunding, you build a community of fans and then ask them for financial support. When this happens, you don't just earn money -- you also build a relationship with your fans. You can create a sense of trust between them and yourself and then encourage them to buy your goods.

These are the same principles behind cryptocurrencies, which are built on the blockchain. As such, they provide an excellent platform for artists to market themselves and their music. Blockchain-based technologies allow users to send funds directly to one another without relying on any third party. And it's safe to do so since all transactions are recorded on the blockchain, meaning there's no chance of fraud.

This decentralization also allows developers to build smart contracts, which could be used by artists to connect with their communities and fans. In fact, many musicians have started using this technology to distribute their art.  With this kind of approach, artists can easily reach out to their audiences and build relationships.

How Blockchain Will Help Musicians

As we mentioned above, blockchain is a powerful tool for creating connections between artists and their fans. It allows artists to reach out to their communities directly and build relationships with them.

Moreover, blockchain is also great for promoting their music. By giving their fans a stake in the project, artists can incentivize them to spread the word about their songs. These fans will feel invested in the success of the project and therefore more likely to promote it.

This means that artists won't have to rely on traditional methods of promotion. Instead, they can put their creative vision to good use and find innovative ways to generate buzz around their music. And this is especially useful for independent musicians. Due to the current state of the music industry, most artists are unable to compete against major record labels. So in order to gain exposure, they have to turn to crowdfunding.

But with blockchain, artists can bypass this process entirely and put their music directly in front of their target audience. All they need to do is upload their tracks onto a decentralized app (dapp) and let their fans decide if they want to listen to it.

While these dapps may seem similar to traditional music-related services, it actually offers a lot more. For instance, users can buy virtual goods within the app, such as T-shirts, hats, and stickers. Also the dapps do not take 30-40% of the musicians’ revenues. Outside utilizing dapps, musicians and other workers in the music industry can also utilize cryptocurrencies to make money.

Blockchain Use Case for Music

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Many artists would agree that the best way to increase profits is to build a loyal fanbase. But this doesn't come cheap. That's why some musicians have turned to crowdfunding via DApps to finance these projects. However, these DApps aren't as reliable as we'd like them to be. For one thing, it's difficult to ensure that artists receive payments from their supporters.

To solve these issues, some artists have begun utilizing the Ethereum blockchain to launch their projects.

Ethereum is a smart contract based cryptocurrency that allows artists to build customized DApps. As such, it enables them to create new revenue streams and offer incentives to their supporters.

Additionally, they can also integrate various features to reward their supporters. For instance, artists can enable their supporters to become co-owners of the project. Once they've done that, they can leverage the unique characteristics of the blockchain to attract new backers. 

They can also utilize smart contracts to automate payment processes, streamline collaboration, and even add rewards and bonuses for supporters. In short, the blockchain is a versatile technology that can help artists monetize their creative output and give their fans ownership over their creations.

It also lets them build better products and services and reach out to new fans. And these benefits are especially important for independent musicians.

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donniezeb
donniezeb

Hello, I'm a crypto enthusiast. I believe in decentralization and blockchain :)


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