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Blockchain Technology
technology (Shrestha et al., 2020). The Ethereum platform is used to help remove
any confusion related to ownership of the music or any payment-related issues. The
concepts of smart contracts and cryptocurrencies have been used by this business.
Initially, when blockchain technology was invented, the cryptocurrency that was
a part of the transactions was bitcoin. The hashing algorithm used was SHA-256.
But bitcoin did have limitations, such as scalability and computation power, to name
a few.
The Ethereum technology overcomes the limitations of bitcoin, and the crypto
currency associated with it is called Ether. The main feature of the Ethereum network
is the Greedy Heaviest Observed Subtree (GHOST) protocol. One main advantage
of Ethereum blockchain over bitcoin blockchain is that the Ethereum block contains
the most recent state of the block along with the block header, nonce, difficulty tar
get and transaction list (Vujičić et al., 2018). The centralization problems that would
occur due to stale blocks are overcome in this technology.
9.14.3 CHOON
This is a blockchain-based platform for music streaming with digital mode of pay
ment, located in the UK. The platform provided uses Ethereum technology as the
basis for smart contracts between the artists and contributors of every song. The
creators of the song receive their payment within a time based on the number
of streams that have been recorded, whereas with the traditional procedure, they
would have had to wait for a year and might not have received the correct royalty
either.
In addition to rights or royalty payments, the blockchain also provides crowd
funding to new forthcoming artists, and rewards are given to listeners when they
create their own personalized playlist.
9.14.4 Open Music Initiative (OMI)
This is a non-profit business that includes around 200 members residing in Boston,
Massachusetts. The aim is to have an open-source protocol that can be followed in
the music industry (Sitonio and Nuccarelli, 2018). The use of blockchain technol
ogy helps to uniquely identify the music rights owners and creators, enabling them
to receive their deserved royalties. The platform provided by OMI is an applica
tion programming interface (API) that helps the stakeholders of the organization in
developing their own systems.
9.14.5 Musicoin
This is a platform located in Hong Kong that not only streams music but also sup
ports the creation, use and distribution of the work in a shared economy (Sitonio
and Nuccarelli, 2018). The global currency it uses, called MUSIC, provides sup
port with respect to any trade that involves music or purchases that are related to
music. Middlemen such as third parties are completely removed, ensuring that 100%