Blockchain technology gives musicians more financial control over their careers.
Bitcoin isn’t just for geeks and hackers anymore.
Rapper Ghostface Killah of the Wu-Tang Clan will launch two cryptocurrencies with the startup Cream Capital next week, inspired by bitcoin’s underlying blockchain technology. In September, DJ Khaled also promoted an initial coin offering (ICO), a high-tech fundraising trend, calling digital currency a “game changer” on Instagram. The music industry is going gaga for blockchain technology. Here’s why: It gives artists more control over their careers than was ever possible before.
At its core, blockchain technology is an immutable way to transmit digital packages directly, peer-to-peer in the same way texting is direct as opposed to a tweet hosted on Twitter’s platform. However, unlike a text message, bitcoin payments are completely transparent. This appeals to artists sick of the music industry’s inefficient payment channels.
“Unlike the existing reporting methods that can be manipulated, inside the blockchain system everyone in the project can log on and see what the sales are. This is hugely empowering for artists,” Los Angeles-based recording artist and former Microsoft engineer Shelita Burke told International Business Times. “It cost me zero dollars to use certain blockchain technologies and it’s instant…When I look at it as a small business, and all the money I save, it’s a no-brainer.”