It’s no secret that the music industry has been mired in controversy for raking in profits mostly for producers and record labels then leaving very little to artists themselves. This has been a prevailing issue, even as the rise in music streaming has offered more convenient and streamlined ways to listen to songs.
Even Grammy-winning singer-songwriter Taylor Swift has spoken up about this issue when it comes to Apple’s streaming services and has protested against Spotify’s music streaming terms. Bitcoin enthusiasts say that the cryptocurrency might be able to solve all this.
Bitcoin and Music Streaming
“It’s a typical collective-action problem, where everybody is benefiting in a small way from the inefficiencies in the way things are done,” said D.A. Wallach, a Spotify resident artist of four years. He posted a suggestion to incorporate bitcoin in the music industry through a blog post on Medium entitled “Bitcoin for Rockstars.”
In his entry, he shares that the cryptocurrency can be used for a blockchain-based distribution system. Blockchain refers to the public ledger of bitcoin transactions, which is updated by a network of computers solving complex algorithms to make verifications.
To apply this in the music industry would require the creation of a system that tracks when music is played and who owns the various rights to each song, and then integrating payment – something that the bitcoin network could accomplish.
“A new paradigm for music data management is sorely needed. One solution could be a decentralized, open-source global platform, owned and controlled by no single entity,” Wallach wrote. “Theres’ no reason this shouldn’t happen. You have a really archaic infrastructure that these media businesses are sitting on, and the people who really suffer are the people who create stuff.”
However, Wallach noted that turning the idea into reality could take years and that he isn’t really interested in spending decades to do just that.