Cryptocurrency and its blockchain foundations are the subject of intense research, and earlier this year Deloitte reported that blockchain would grow to $170bn by 2025. What’s more, research labs have popped up, with one notable facility in Rotterdam. The result of this is that blockchain is becoming far more versatile and applicable to everyday people, rather than stock markets and technologic enthusiasts.
One area being positively affected by blockchains growth is the creative industry. Technology has had a great effect on creatives, from providing better marketing opportunities to making sales easier. However, there are unique problems that cryptocurrency is helping to alleviate.
Tackling the copyright problem
The creative industry thrives on reputation and names, with the effort taken to learn a creative talent resulting in a positive reputation that improves the value and worth of ensuing projects. This is the case for pen-and-paper creatives or those based entirely digitally. Copyright infringement can pose a serious loss of earnings to small creative businesses, and with the pursuit of a claim costing between $1500 and $3000, according to Traverse Legal. Cryptocurrency helps to alleviate this issue through its level of assurance. With what is outlined by Forbes as a three layer security hierarchy , cryptocurrency provides absolute assurance that the person selling the creative wares is the originator and the the buyer is receiving a genuine product. This way, traffic is driven away from imposters.
Promoting dynamic pricing
Art, and especially digital art, is not necessarily priced as a reflection of its true worth. For example, musicians will typically need 600 plays on a service such as Spotify to make money, and where labels are involved, much money is skimmed off in fees and the like. WeForum have suggested that by allowing direct and flexible pricing, creative wares will be given a true reflection of their value and the requirements of the originator.
Generating creative currency through blockchain tech
Musicians may be familiar with Musicoin, a cryptocurrency tied to the Ethereum platform. In short, what Musicoin is achieving is a better deal for artists by providing crypto for every play of a track. Many artists, including Joel Becquava writing for LA weekly, have bemoaned the deal that streaming services such as Spotify provide for artists. However, the influence of big labels and platforms makes it difficult for artists to choose somewhere else to ply their trade. The effect of cryptocurrency on music ties back into the freedom other artists could enjoy through using it as a payment method – it pulls the service back to between the originator and the customer, removing middlemen and giving greater agency over decisions and creative direction. What’s more, the direct market will influence the music to a much more honest degree.
A transformative technology, cryptocurrency is turning heads in more markets than the financial ones. The realignment of payments and processing to end users means that it can be effective for creative industries. With the first steps taken in music, time will tell if it sees wide scale adoption.
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