Blockchain Technology to Transform Music Industry
The music industry is an oligopoly situation controlled by some major companies, therefore, it is difficult for new companies to enter the industry, and for individual artist to be succeed without supports of a big record company. The problems are not only this power balance issue, but also other issues, such as ticket fraud and copyright protection as well as music creators are not receiving fair pay. Hence there is an increasing interest in blockchain technology as a solution for these problems.
The Creator’s Portal, (Public Alpha)
Ujo is thrilled to announce the release of The Creators Portal, the engine powering the future music industry we envision.
Using the Creator’s Portal, music creators can upload and register their works on Ethereum via Ujo. By uploading through Ujo, the composer will be able to manage all the processes, including licensing agreement, royalty fee for songs and provide a release page where they can share their work with the world.
The big advantage is that artists do not need to pay any intermediary fee, because artists directly deal with users. As a result of that, artists` income increases and enable for them to continue music career with lower cost. It is also expected that revenue cycle that is the process of sale of their music and collection of money would be much faster using speedy Ether payment.
“Crypto-tickets” to prevent ticket scams
Many music event organizers and ticket distributors have been faced with ticket fraud issues in the past. For example, about 10,000 Ed Sheeran’s fans were turned away at the beginning of last year as their tickets turned out to be forged at the venue after purchasing them at the price many times higher than the original price form the unofficial tickets seller.
The German legend electric music band “Kraftwerk” used “Crypto-tickets” based on Ethereum to sell their show held in mid-February this year for the first time in the world.
Crypto Tickets is a platform which protects the validity of tickets by making it encrypt using Ethereum blockchain and Smart contract. If users wished to purchase concert tickets through Crypto Tickets, they have to download a mobile application to purchase, however, just present them on the show night to pass through gate control. By implementing blockchain for ticket sales, this method will become a countermeasure against ticket fraud which has been a problem for both consumers and event organizer.
Crypto Tickets platform enables organizers to control tracking the entire lifecycle of every crypto-ticket as well as to manage secondary sales including pricing policy, preventing resale scams, analytics of the show attendance.
CopyrightBank: registration and verification of copyright powered by NEM
CopyrightBank is a platform based on NEM. Its object is to register and verify the copyright of wide range of digital creations. NEM blockchain specializes for business use targeting at consumers, companies and governments, and NEM community runs CopyrightBank.
CoppyrightBank ー the Solution to Copyright Issues
The music work in digital format is vulnerable to copyright infringement, therefore it costs enormous amount of money and time. Thanks to the awareness of copyright infringement in the society is growing, the copyright law has been revised almost every year, however, the problems never ceasing. The majority of current blockchain-based copyright solutions guarantee copy right, authenticity and validity of electric data by offering basic time-stamping services which will be the proof of time for execution of digital sign and transaction. CopyrightBank focuses on not only music work but also photographs, images and art works.
Users can easily drag and drop their digital work on the dashboard. Once confirmed, the file will be marked with the time stamp in the NEM blockchain and the digital fingerprint file will be downloaded to the user’s browser. A registration certificate confirming the time stamp and the fingerprint of the file is issued.
Concretely speaking, user is able to move their own digital work file including video and sound by simply using drag and drop them on the dashboard of their own computer. Once it is approved, the file will be recorded with time stamp within the NEM blockchain and the digital finger print(*1) will be downloaded on user’s browsing screen. After that the registration certificate will be issued to approve user’s time stamp and digital fingerprint file.
*1 Digital finger print is a hash used to validate for identification of digital contents. It is possible to detect tampering by checking hash. Digital finger print is mainly used in detecting tampering of electronically transmitted messages and electronic certificates. That means whenever the user obtain videos or creates music files, Copyright Bank will register their procedure on blockchain which is impossible to tamper. Once it is register, this recording system will enable to track of all history including the execution time of procedure.
The income source of Copyright Bank is divided by three models, business to personal user including charging fees for registration, management and certification of copyright, business to companies working with content creators such as film studios and providing accounts where copyright can be registered automatically and in bulk, and business to governments that requires robust online copyright registration system including national intellectual properties.
Blockchain technology has a possibility to bring a revolution to the music industry, as it establishes networks that do not require intermediary, and provides the music distribution service tied up with smart contract.
The mediums for consumers to enjoy music is continuously evolving. Currently, streaming services, obtain and play video or audio content online immediately each time rather spending time to download and reduces the load on the network, are mainly used among the consumers as the form of music distribution, however, it is shifting to the next generation of block chain. If the artists themselves gain higher profitability and establish optimized platform where music copyright be protected by implementing block chain, it would be the disruptive power that undermines businesses such as traditional big record companies and music distribution companies.
We, Wrpious Ltd is a company which pursues research and development of Wrappy, our next generateon SNS application used blockchain technology. We support the fair trade within our community where Wrappy forms and aims to establish the flat social business platform not making any distinction according to the size of companies.