The outburst of Uber, Airbnb, Getaround back around 2009 marked the latest era of the sharing economy. They are all innovative p2p business models that no one can deny. Notably, Uber has been known to leave a mark on the daily life of every individual. This is none other than the legitimized rise of what we know as the sharing economy today.
Currently, there is a sharing resolution for all our needs. It ranges from home-sharing down to desk sharing and up to the exchange of daily household duties and tasks.
So many individuals are more than willing to completely trust and open their lives to strangers that are willing to offer any desired temporary service or product as the case may be.
The concept of sharing services or products instead of outright buying it has deeply resonated with consumers all over the world. It has created a shift in the mentality of consumers as well as their spending behavior.
Blockchain And The Sharing Economy
Blockchain has a clear-cut definition which refers it to a computerized, decentralized public ledger for every digital currency transactions. Each of the transactions is documented in chronological order.
They are made easily accessible to anyone that is on the blockchain and it has no particular intermediary that facilitates any of the transactions. It is widely known that the blockchain eliminates all control of central authorities and governing entities. Also, it enables people to better carry out peer to peer transactions.
Blockchain is said to be the next stage in the amazing evolution of the sharing economy. This is possible because, with the blockchain, there are immutable and binding smart contracts that practically hold each party accountable. This is what powers every blockchain.
Each of these contracts defines and ultimately enforce rules regarding the agreement and this means that they function as substitute referees in the peer to peer transactions. Uber could survive or die based on its ability to adapt to the blockchain. The smart contract can also allow an Airbnb host to accept and filter guests better on the p2p protocol.
Some companies are the near future of a blockchain-based sharing economy. Diverse organizations are gradually rising as disruptors to the existing disruptive sharing industry.
Some of the companies that have been projected to make a significant impact on the everyday life of consumers include:
It has a decentralized network that operates based on the Blockchain and it is powered by virtual currencies to aid in increasing the accountability, security and ultimate safety of straight exchanges between the home providers and the renters.
Meanwhile, the Wi-Fi providing platform known as OPP Open Wi-Fi is developing a person to person network that focuses on solving inaccessibility of the internet and will disrupt all payment for Wi-Fi plans.
Die to the fact that the OPP platform practically taps into some advertising dollars, the people who need Wi-Fi will not be required to make any payment before they access the hotspot of OPP Open Wi-Fi.
Also, the hosts will be paid through digital currencies whenever they activate their OPP mobile app.
To Wrap It Up
With the advent of the sharing economy, it is evident that individuals are eager to transact with one another although intermediaries have been the ones in control of every interaction and transactions that occur.
However, with the incorporation of blockchain into the concept of sharing economy, it has the prospect of eliminating all these middlemen and truly creates a person to person marketplace.
Platforms like Spotify, iTunes, SoundCloud, and other music streaming services allow music artists and listeners to connect. We can now listen to music any time we want to with the help of technology. However, integration of blockchain and artificial intelligence now defines much of the music industry whether we are ready to face it or not. One phenomenon that has become common along with the streaming platforms is that of artists signing up if they want to monetize their music. As a result, the money that artists receive is either controlled by the labels or the streaming platforms, often taking longer to reach the artists’ accounts.
Benefits of Blockchain in Music Industry
Mainly, blockchain is initiating a token-based economy which allows the artists to control their intellectual property by turning it into a financial asset. The token which belongs to the artist will show the accurate value of the work and therefore, anyone that purchases the work will own a share. As more people listen to music, the revenue will be earned by the artist as well as the shareholder.
Furthermore, this enhances the music business as the artists will be able to earn the money upfront. They will not have to seek music labels for the monetization from a music label. This means that the artists can stream their music on Spotify or SoundCloud etc. as well as control the royalties they earn.
The third prospect we can aspect to change with blockchain is that of licenses and agreements between music publishers. The blockchain has the potential to make space for a system that can maintain the database of music copyrights. Moreover, anyone interested to access the information to learn about the copyright owner can look into the details easily. The music industry at the moment has a complicated system of recording agreements that control the artist’s royalties due to the lack of clarity in ownership.
Future of Blockchain in the Music Industry
It can be anticipated that the music industry will someday fully embrace blockchain and radically change the industry. At the moment, it seems far-fetched for blockchain to completely takeover. However, it takes a startup to turn into a million-dollar enterprise and we can already see examples like VOISE, Ujo and many others.
Another startup worth mentioning is the Viberate which started back in 2015 and has been growing ever since. It already has many famous artists that are recognized on the platform including Imogen Heap, Robbie Williams, The Chainsmokers, and several others. The Viberate team is leading blockchain in the music industry by the example of providing music solutions.
However, this change is not only beneficial to the artists or shareholders because according to A-Rayz, “Tokenization allows fans to be active participants in an artist’s creative work and share in the success of a project.” This statement implies that the listeners will readily have to adapt their preferences for musical platforms and switch along with their favorite music artists if they wish to hear their music and promote their work.