Blockchain royalties are hitting music and other creative segments
It's opening up a whole new field of payment possibilities.
A crowd funded smart speaker by the name of Volareo has been making waves in some circles.
Blockchain and cryptocurrency is one of those circles, with a unique built-in tipping and payment system opening up some intriguing possibilities that simply didn't used to be possible.
How do you pay the musicians you listen to? Assuming you do at all.
The usual procedure is to buy something way on down the end of a chain, or simply be present in a way that accrues advertising dollars to a radio station or something. Your money then trickles its way up a chain until a small amount of it eventually arrives in the pocket of the musician.
It's overall terribly inefficient, says Stephen Brett CEO of InMusik and former owner of FastLane studios. What if you could just pay them directly?
"Cryptocurrencies have opened up brand new royalty payment models that have not been possible previously. The ability to reward musicians directly without an intermediary is now enabled via direct payment cryptocurrencies," he said.
"The Volareo speaker is a perfect example of utilizing the efficiency of cryptocurrency for a currently crowded and inefficient market. The new payment methods will allow people to, for the first time, send, receive, and distribute payments in a decentralized manner which are then settled and able for use in mere seconds after instantiation."
InMusik, as the name suggests, is focused on music. But the same systems have already started seeing use elsewhere. For example, Microsoft is eyeing blockchain technology as a way of detangling its royalties payments in games. These might include a wide range of different artists, designers, musicians and other creatives or agencies who get a certain cut of the profits from game sales.
It typically takes 45 expensive days to process one of those royalties payments, so a system that can do it almost instantly is a huge improvement.
It also opens up payment schedules that weren't feasible before, in conjunction with some of the other benefits of distributed ledger technology. For example, the ability to pay someone for the content they've produced as it's actually enjoyed, the way Volareo does. Beyond that, it could take the form of renting music or art to put inside games or elsewhere, for a limited period of time.
The same kinds of "on-demand" payment possibilities might change other industries from advertising, to art to anything else.
In the case of music, Brett is confident that it's the way of the future right now and will continue to be in years to come.
"This is something completely revolutionary for the music industry, a phenomenon that will remain and be utilized for years to come," he said. "The general industry is yet to truly discover the potential of blockchain and cryptos in the music industry, something InMusik as well as Volareo have in common."
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, ADA