Written by: Angelea Hengle
Our world is constantly on the verge of a new technological wave, it can be difficult to keep up with the fast-paced industry. Though this area can be daunting, the following trends are making a huge impact on the music industry.
Blockchains, NFTs, and the DAO-based system, Great Wave, are just a few ways artists can capture the sustainability and transparency that aren’t always present in the industry.
BlockChains and Smart Contracts
The BlockChain ledger, a significant part of BitCoin, is a shared ledger that facilitates mutual transactions between parties with no room for any alterations made to the asset. That being said, no outside parties can corrupt the product. Another part of BlockChain technologies are smart contracts. Harvard Journal describes smart contracts as, “a contract that allows for two or more parties to implement their own terms and conditions into a binding digital ledger” (Harvard Journal). With smart contracts, the need for outside parties is no longer present, and helps ensure that both parties can be morally obligated to the terms and conditions.
Between smart contracts and Blockchain technology, the music industry may see an increase in consumer satisfaction along with a stronger connection between fans and artists. Artists have the opportunity to receive fair payouts every time their artwork is used without third parties interfering (purchasing platforms, etc.). This type of artist payout can be beneficial for all types of artists, especially artists looking to break into the scene. Artists will also have more transparency when it comes to sales of their work, along with a database that accurately stores copyright information that rightly credits and compensates the artist.
NFTs (Non-Fungible Tokens) have blown up in the past year, but how can this affect the music industry?
It goes without saying that streaming services account as one of the top ways fans listen to music. However, the payout artists receive from these services is extremely low, and unsustainable. Despite the positive outcomes that come with streaming services (ie. connecting fans to artists, discovering new music), royalty payout is lacking. NFTs can come in the form of individual songs and be used for music licensing. NFTs serve similar purposes as the Blockchain and smart contracts; where the other party is cut out and can better connect fans to artists.
The Great Wave
The Great Wave is an artist collective DAO (Decentralized Autonomous Orgnaization). The Great Wave is another great initiative to better connect fans and artists, while also giving power to all artists/parties involved in the creation of their work. Artists are investing into the collective and The Great Wave will fund the artist’s work.
The Great Wave operates on the Web3 platform that encourages movement of art through NFTs, funding, ownership of the collective, and collaboration. Artists will be paid through commission of their work and will have the opportunity to reinvest back into the DAO’s token WAV.
Blog Author - Angelea Hengle: Hey y'all! I'm Angelea and am super excited to be a part of this great team! I'm a recent graduate from DePaul University in Chicago, IL, and am so happy to call Richmond home again. I received my Bachelor of Science in General Management with also a double minor in Psychology and Music Business. In college, I was President of DePaul Dance Company and Co-Event Coordinator for DePaul Music Business Organization. Creativity and artistry have always been a part of who I am and I am so grateful to be in this amazing community.