How DAC Blockchain Will Bring You Closer to the Music Artists You Love

Blockchain seems to be pushing every industry it touches into the 21st century. Decentralization, democratization, and instant, secure global interactions are all hallmarks of the “Blockchain Effect.” Now, the music industry is next.

It appears in a world with Spotify and SoundCloud, the music industry has hit an unprecedented level of freedom and empowerment for the independent artist. Any musician can gain a following on SoundCloud, and Spotify allows artists exposure to millions of listeners. Despite these advancements, today’s digital content platforms rely on centralized business models which creates many problems, including:

• Revenue models where centralized third-party interests (digital platforms, rights aggregators and music labels) take the majority of profits lack of incentives for content creators. Digital content platforms often pay creators only fractions of a penny per stream, requiring creators to generate millions of listens to earn minimal revenues
• Unfair incentives for content creators. Only the top and most influential creators can realize meaningful revenues
• Content creation from aspiring and indie artists is suppressed, which stifles creativity for creators and content selection for consumers

Thankfully, innovative companies are out to solve these problems. DAC, short for “Decentralized Audio Content” is a decentralized audio content platform which is based on blockchain technology and uses an innovative token economy to better incentivize and reward all content creators and consumers.

DAC’s platform is based on 3 important factors: 1) the majority of revenues, rewards, and incentives are earned by content creators and users who support them, 2) full copyright protections for IP and user data protections for personal information, 3) innovation in audio interactions and developing a content platform that interfaces with not only mobile devices via graphical user interfaces (GUI) but also smart speakers and smart headphones via voice commands, voice AI, and voice user interfaces (VUI)..

A Closer Look at How Industry Pitfalls Have Discouraged Content Creators

As mentioned above, the powers that be still have a large control over the industry. Websites like Spotify use secretive algorithms to decide which songs receive “play time” or what is offered to its users. These algorithms are programmed to maximize those artists who labels are trying to promote, limiting independent artists exposure.

The barrier these websites create between artist and consumer also can impact fair compensation, with Spotify making millions off of user subscriptions and advertising while artists receive (often measly) royalties.

More generically, these websites, like almost all tech companies these days, mine data from their users and sell it to 3rd parties. This massive store of individual data in servers presents security complications and violations of privacy that only seem to grow more severe by the day.

The weaknesses in the current system lead to less content from artists who feel they are not being paid fairly for their labor, which in turn leads to less content for the consumer, less art, and less commercially risky artistic innovation.

While there have been attempts to fix these systematic weaknesses, and websites like SoundCloud and Spotify have improved the compensation and exposure model for artists by light years since the years of LP’s and CD’s.

How DAC Solves All of These Problems Using Blockchain Technology

However, all of these problems could be solved by the application of blockchain technology introduced by DAC. Their peer-to-peer, decentralized audio content sharing platform provides maximum compensation for artists and rewards for consumers who contribute via curation and content referrals, all while protecting privacy and creating a global community of artists and patrons.

DAC’s real innovation is in its creation of a global community. The platform will utilize a token system and a Proof of Recommendation (PoR) algorithm to reward both content creators and content consumers for their value-added actions in the community.

For content consumers and users, DAC’s PoR algorithm rewards value-added actions such as content curation and content referral. Users can earn token rewards simply for rating and reviewing content. Additionally, more rewards are earned for curating lesser known content to aid with content discovery. Users can also earn token rewards by referring content to other users and earning a share of profits (currently set at 20% for referrers and 80% for content creators).

For content creators, DAC’s PoR algorithm provides rewards for simply providing good content to the DAC platform. Creators can earn tokens through direct purchase from users or through referral purchases. Creators can also earn tokens based on how much PoR rewards their content generates for consumers.

History shows that when bands with a loyal community, like Radiohead or smaller, independent artists, established “pay what you want” models for their albums, their fans are more than happy to oblige to chip in rather than simply take the album for nothing. DAC would facilitate this exact type of free exchange and artist-to-fan interaction.

With DAC’s token economy, content creators can be assured of instant and secure payment for their content, minus the interlocution of sites like Spotify. They can also be assured of a community to promote and build their fan bases, creating new incentives and models for content creators to follow. With instant, global feedback, artists will know exactly what their fans want, and react accordingly. What effect this could have on music remains to be seen.

Conclusion

Cryptocurrency up until recently has been used mostly as a financial tool or store of value. Novel ideas that emphasize the secure, decentralized nature of the technology are still being developed and promoted.

However, should DAC be a success, there is no limit to the effect blockchain could have on artistic markets. Independent filmmakers could be able to sell directly to those interested in their content in a global market and community.

Any sort of content could hypothetically be opened up to an engaged community of consumers, and opened up to communal modes of valuation. This sort of free artistic market could be the answer the rise of piracy that came with the initial democratization of content that came with the internet.

Disclosure:

The author has had a working or personal relationship with one or more companies mentioned in this article in the past. Access to mentioned company’s management and information was made through the author’s personal network. All information was vetted prior to posting.

Disclaimer:

This essay is not intended to be a source of investment, financial, technical, tax, or legal advice. All of this content is for informational purposes only.

How DAC Blockchain Will Bring You Closer to the Music Artists You Love was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.