PG Music Home Forums General Discussion Off-Topic How Blockchain technology is changing the way we are thinking about music distribution.

Here is an interesting overview of a technology designed for financial transactions may affect music distribution in our time.

Blockchain and Music

Thank you for sharing! I found this to be a very interesting read. Really gives some insight into the direction music distribution is headed, like it or not.

You are welcome, Deryk. I thought you might enjoy the article.
I heard about it from a stock analyst, and it had to do with IBM.
Now, just look at the ramifications.

Very interesting article. Thanks for sharing! One of my pet gripes on having my music digitally distributed by The Orchard is that, as an artist, you have absolutely no idea if the figures you are being fed are accurate or not. You just have to go on trust.

I don’t know if anybody saw the movie “searching for sugarman”. Sixto Rodriquez’s royalties for his South African sales somehow went missing and nobody knew how it happened. Rodriquez was hugely popular in sa and sold loads of records here. Rodriquez never knew this (because his royalties somehow got lost) and gave up his music career completely. Years later, at the age of about 70 and after an enterprising South Africa “found” him, he came to South Africa to perform and could not believe a packed stadium singing back ALL of his lyrics to him! Sad story really because he was a phenomenal songwriter.

Maybe Blockchain technology will finally give complete control and transparency to artists.

I don't understand blockchain or this whole bitcoin hoopla . . . I choose to stay in the dark. I wonder what the Napster guy is doing these days?

The article describes a model where:

1. Music media is encrypted.
2. Each playback of the media requires payment.
3. Payment is handled via decentralized blockchains.

This scheme requires the music consumer to pay each time they listen to music. This is a non-starter for most consumers - they don't want their music encrypted.

And while the payment is decentralized, codec and associated infrastructure isn't. That means that whoever controls the codec is the distribution channel. They have the ability to control who gets paid, and how much they get paid. No chance of abuse there.

It's a bleak scenario no matter how I look at it.

CDBaby is the same, you basically have to go on trust.

But the big problem with digital music these days is that hardly anyone buys MP3s anymore, it is mostly streams. And not only do you make almost no money with streams (.002 from spotify and iTunes for a stream :p), it takes MONTHS after the stream for you to get the report. But, that's not CDBabys fault.

bandcamp seems pretty good for selling MP3s, I just uploaded our new CD there yesterday and already sold two copies. And that is just from people that follow us over there, we haven't done anything to plug it yet. They send you an email the instant someone buys a CD or a track, which is pretty cool IMHO.

We always look forward to our mega $75-$90 check from CD Baby every couple of years are so I don’t even bother to read where all the plays came from. We released the CD in 2003 (a trio with us and our friend bluegrass legend Randy Howard who had passed away in 1999). All proceeds went to cancer research. The CD sold well initially and charted in several markets. Within 18 months all the songs were ripped off and could be found in various places on the net for no charge download. CD sales died so we eventually went with CD Baby’s digital distribution. Is it accurate? I don’t have a clue but a few dollars here and there to donate in his honor are better than nothing I suppose.

I mention this only because it’s one of a zillion, but in this case personal, examples of what the “digital revolution” has done to artists.

Pardon the rant. Not trying to hijack the thread.

Bud

No, you are right on the money with those remarks, Bud. It all gets down to basic, simple, transactions. A bitcoin is not a record, though. But, if you think about it, they could code in some kind of encryption, requiring the consent of a third party to enable the MP3. Problem is, the more they go there the more likely the same old thing is going to be encouraged; that is, bootlegged and pirated tapes.
Let's not go back to the guy in the parking lot with a trunk full of 8-tracks.
I recently attended an online investment seminar. The point was made that any time we see a prolonged bull market, as we are in, we always see a rash of "don't miss out on the next big thing." It is a human frailty and bitcoin (self driving cars, pest free corn, the list goes on) fits the description.

Don't confuse Bitcoin with blockchain technology. Blockchain technology is basically a ledger that it distributed between multiple machines - a bit like an accounting ledger - that keeps a track of every transaction undertaken. Each transaction is recorded, checked and verified by computers busy mining to find new currencies. Basically the currencies are mathematical formulas that have a known number of solutions. Excuse my gross oversimplification. Bitcoin is the most well known crypto-currency and has seen remarkable price increases. I got into it rather late, but have seen between 50-150% increases in my $US investment over the last 3 months, depending on whether it was last week, the week before or today. I thought about getting involved in it a few years back. If I had, I'd be buying into PGMUSIC etc now. Other less well-known crypto currencies are also making spectacular gains and losses. Some people hold on to their investment/speculation (Hodlers) and others day trade. I like to think of it as a bit like horse racing. You can do your research and at the moment my ponies are doing ok. Blockchain and the technologies surrounding it (often trying to make it work better and faster) have the potential to transform our world in a way similar to the Internet and the WEB. It's the Wild West out there, but it is also a force for libertarianism and change. It's easier in HK because we have no tax on shares etc, so I don't have to fear explaining my investments to the IRS like those in other places. My investment is small, so if I lose it all tomorrow, I'll chalk it up to a bit of fun. I started with about $400 US and lost half of it in the first month. That initial investment is now about $1000 US. Not bad for someone who started in September. I didn't panic when it went down and after learning how to trade and set up wallets etc, I put in more $US. It sure beats the status quo where I get no interest on money in the bank and my retirement pension generally goes down in value thanks to the banks who manage these funds in HK and in whom I am forced to use by my employers and the government. One bitcoin is currently $18033.11 US as I write. Imagine if you'd bought them this time last year when they were below $4,000 US!

Here is an article on the Home Page of International Business Machines which addresses the current interest in Block Chain. A feature of the article is that it provides links to additional info, should anyone wish to follow along further.

IBM Home Page Article RE; Blockchain

Anyone who is interested, be sure not to overlook the short video on the page.

I am assuming forum members are following this technology according to their own interests and levels
of interest. I don't want to be overbearing about this,
and I know it is a little off our topic. Still, as I follow
along, this is a technology filled with surprises.
https://youtu.be/dufvrGuhQVM
Substratum is developing in video hosting.