The TikTok remix boom is chaos for artists—blockchain music makes it fair, trackable, and profitable.

Brief Historical Evolution of Music Formats

From vinyl records to music streaming, the way we consume music has constantly evolved. Vinyl records (from the 1940s) defined the album era, followed by cassettes and CDs, making music more portable. In the late 1990s and early 2000s, digital audio files (MP3s) emerged, allowing platforms like iTunes to sell individual tracks and albums digitally. Over the last decade, the model shifted to streaming services like Spotify and Apple Music, where users don’t own music but gain access to vast libraries.

Today, streaming dominates the music industry, accounting for around 84% of total revenue. While this technology has revolutionized music access, it has not benefited artists in the same way. Major platforms and labels take the majority of the revenue, often leaving artists with only fractions of a cent per stream. For example, Spotify pays between $0.003 and $0.005 per stream. An artist with one million streams earns only $3,000–$5,000, which is insufficient for many independent musicians. Meanwhile, companies like Spotify generate billions without fairly compensating artists. The complex royalty distribution process and lack of transparency make it difficult for artists to track their earnings.

This imbalance calls for a fairer and more transparent alternative. Artists and fans are seeking new ways to share and enjoy music while ensuring fair compensation for creators. Blockchain technology offers a promising solution to address the economic inefficiencies of the music industry. Just as past format changes (e.g., from vinyl to MP3) transformed the market, a blockchain-based decentralized music format could usher in a new era of music distribution where artists are at the center.

How Blockchain-Based Music Works (Simplified Explanation)

Imagine a music service that isn’t run by a single company but by a network of users worldwide. In a blockchain-based music system, songs aren’t stored centrally in a platform’s database but are distributed across a decentralized network. Technologies like IPFS (InterPlanetary File System) enable music files to be stored and shared across multiple computers. No single entity controls the catalog; instead, the blockchain maintains a tamper-proof ledger recording where songs are stored and who owns them.

A key component is smart contracts – self-executing programs stored on the blockchain. These contracts automatically ensure that artists get paid whenever their music is streamed, purchased, or reused. For instance, a smart contract could state: “Each stream of this file transfers $0.01 to the artist.” Once a listener plays the song, payment is instantly and transparently triggered. Multiple stakeholders (e.g., songwriters, producers) can receive their revenue share directly without intermediaries managing the funds. All transactions are publicly viewable, ensuring full transparency.

Another core technology is music NFTs (Non-Fungible Tokens). These are unique digital ownership certificates for songs or albums. They can be bought, sold, or traded, allowing artists to earn royalties on future resales. Unlike traditional music downloads or CDs, where artists earn only from the first sale, blockchain-based NFTs allow creators to receive an automatic royalty payment whenever their work is resold.

Regulation of Song Reuse and Sampling via Blockchain

A fundamental feature of this new music format is the controlled and automated regulation of song reuse. Artists can determine:

Whether and under what conditions other artists can remix, cover, or sample their songs.
Automatic detection of derivative works: The blockchain can analyze and identify whether a new song is a cover, using 80% of the original melody and lyrics, or if it only includes a 5% sample.
Automated revenue distribution: Since all derivative works and their usage are recorded transparently on the blockchain, original artists receive a share of revenue based on the extent of reuse.
Blocking unauthorized derivative works: If an artist does not wish to allow adaptations, the blockchain can automatically block unauthorized copies from being distributed.

Real-World Example: The song Anxiety by Doechii uses elements from Somebody That I Used to Know by Gotye. Later, Sleepy Hallow further developed the song by incorporating elements into his own work. This illustrates how modern music production thrives on reuse and creative evolution. However, current legal frameworks make it difficult for artists to transparently manage and get compensated for such processes.

With a blockchain-based system:

Gotye, as the original creator, could receive a predetermined percentage for every derivative version.
Doechii, as an artist who reused the sample, would also earn well-defined revenue for her version.
Sleepy Hallow, as the third artist in the chain, would receive fair compensation without needing to engage in complex contract negotiations.

Such a system could revolutionize the music industry by combining creative freedom with financial fairness, eliminating the need for complicated licensing agreements or prolonged legal disputes.

Benefits for Artists and Listeners

Benefits for Artists

Instant and fair payments: Smart contracts ensure that artists are paid in real-time.
Higher earnings: Without intermediaries, artists retain up to 90% of their revenue.
Full control over music and licensing: Artists decide whether their music is streamed, sold, or traded as NFTs.
Automated licensing and revenue distribution for derivative works.
Ability to block unauthorized adaptations.

Benefits for Listeners

Directly support artists: When purchasing or streaming music, fans ensure that most of the revenue goes directly to the artist.
Exclusive digital music ownership: Fans can acquire limited editions or bonus content as NFTs.
Rewards for engagement: Platforms can incentivize users for sharing music or creating playlists through token rewards.
Closer connection to artists: NFT holders may gain access to exclusive content or events.

The Future of Fair Music Distribution

A blockchain-based music format has the potential to reshape the music industry. It combines the transparency and fairness of a public ledger with the immediacy and flexibility of digital platforms. Artists benefit from higher earnings and direct control, while fans can own music again and actively support creators. As user-friendliness improves and adoption increases, this model could soon become a real alternative to traditional streaming services—one that rewards both artists and fans.

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