Any frequent internet user must have heard of blockchain technology, cryptocurrency, Bitcoin, and ethereum. These are some of the hottest trends today, and many business models will be upended as the world adopts blockchain technology in business transactions. The Musicoin project, launched in February 2017 is an innovative solution that seeks to cut out the middleman (record labels, etc.) standing between artists and fans.
Blockchain technology refers to a public record of transactions between two parties. It effectively cuts out banks and other middlemen and is the basis for several cryptocurrencies such as Bitcoin and ethereum. Musicoin is a fork of ethereum (a derivative of this cryptocurrency) and enables musicians to be paid 100% of the income derived from the Pay per Play (PPP) revenue stream generated by its music platform.
The goal of the first version of the Music blockchain (‘Hello’) is to remove all intermediaries between the musician and the listener, arguably the only important parties in the music economy. By enabling automation and decentralization in this process, Musicoin can be termed a success.
A second version, Musicoin Version 2.0 (‘Heal the World’) set to be launched in Q3 2017 will take this step further. The founders of Musicoin want to ensure a Universal Basic Income for musicians. This is intended to make it free for any listener streaming on the Musicoin network. The money for paying musicians and maintaining the platform will be derived from a percentage of the money obtained for mining on the Music blockchain. Mining is a process in blockchain technology in which several decentralized computers (called miners) validate and record transactions on the blockchain.
By providing a Universal Basic Income, it is highly likely that the entire music ecosystem will be stimulated, and there’ll be an emphasis on real talent. Divorcing the music experience from money will enrich the whole experience. This is a noble goal, and we can only hope that Musicoin gets to prove that this unique business model can work.