The blockchain reshapes industries beyond finance. In this cryptocurrency newsletter for Advisors, we pass the accent of traditional investments to explore a case of use of disruptive blockchain in the music industry. Inder Phull, CEO and co-founder of Pixelynx and creator of Kor Protocol, explains how musical rights and chain royalties transform property and why this counts for artists and investors.
Then, Ronald Elliot Yung from Ravedao answers questions about these changes and how they have an impact on investments in Ask A Expert.
– Sarah Morton
Remix, Rights & Revenue: why the onchain music infrastructure is the future
A fundamental change, redefining how music is protected, managed and monetized.
Introduction: a broken symphony
The digital revolution allowed musicians unprecedented tools to create, collaborate and reach the world public. Unfortunately, this rapid development came with its own set of challenges. Although the Internet has rewritten the rules of creation, distribution and consumption, the methods we use to protect and monetize creative content, such as copyright laws, license models and fees, have not followed the pace. In this environment, artists find it difficult to keep control of their work, with an inadequate allocation and a lack of fair compensation.
For advisers, you can have customers in the music or investors industry looking to invest in these assets. Understanding the evolution of this industry could be a strategic advantage as the assets move to the chain.
The systems that govern the industry were originally designed in the pre-internet era when the concepts of global digital rights and licenses had not yet been taken into account. We now find ourselves in a situation where Tiktok’s successes are often born of unauthorized samples, music generated by AI floods streaming platforms and artists find it difficult to earn a living.
Legal ways to capitalize on emerging opportunities, such as UGC AI or Virality, remain locked behind the guards, inherited contracts and unclear property data. Enter the infrastructure of onchain’s rights: a change that could reclassle how we protect, manage and monetized music.
The problem: the rights are fragmented and the creators lose
There is a reason why music on social networks has not yet generated any income flows for artists, why the “metovers” lacks music and why AI is perceived as a threat. Existing copyright systems do not adequately deal with the complex network of property rights and use associated with modern music applications, such as remixing or content generated by users on social media platforms.
Current complexity costs billions of the industry, as this system often leaves underpaid and legally vulnerable creators. The creators move to content created by the owner, where they can follow the use of their creations and their consumption, and be paid regardless of the place to consume their assets.
The future: Onchain rights infrastructure
ONCHAIN’s rights infrastructure redefines the backend of the music industry. It offers rights of rights undisputed and verifiable property of their work, with rights in a transparent manner scheduled in the registration. This transparency and this programmability allow music to move effortlessly on platforms, applications and the media, automatically according to the allocation, verifying the provenance and eliminating the friction of traditional license processes. Artists receive payment instantly and their rights are applied in real time.
Imagine if each track had come with an intelligent contract, which listed rights holders, ownership percentages and license conditions in the code. If you wanted to use the song in a remix, a synchronization or a sample, the contract would tell you what is authorized and automatically distributes the royalties.
This is what the chain rights infrastructure makes possible.
On a blockchain, the rights can be:
- Transparent – Everyone can see who has what
- Programmable – the terms, the divisions and the remix conditions are coded
- Traceable – derivatives and remixes are followed in real time
- Compositional – Rights become construction blocks, not walls
If the music industry wants to capitalize on emerging technology and contact the digital consumers of tomorrow, it will need a more agile and prospective approach to the management of music and licenses. ONCHAIN’s rights infrastructure is the answer.
Understanding the transition to the rights infrastructure on the chain is no longer a niche; It is a key element of the future. Whether you advise intellectual property holders sailing on their fees or helping investors explore music music as an emerging asset class, it is essential to talk about how rights and income can be encoded transparently. Like the consumption models reshaped in streaming, the infrastructure on chain reduce the property system; Those who understand it will be better placed to develop in the evolving digital economy.
– Inder phull, CEO and co-founder, pixelynx
Ask an expert
Q. In a world of corporate festivals and reading lists focused on algorithms, how can decentralized models allow new musical scenes, community leadership and fans’ property?
Music has always prospered in the pockets: underground clubs, room producers, DIY scenes. The blockchain now offers a chance to bring these microcultures to the world, putting the influence in the hands of those who live culture, not only those who monetize it.
For investors, the increase is early access to unexploited cultural capital and the energy of self-organized communities. Most users are still looking for experiences, not just technology. No protocol can make authenticity, and it is easy for chain “property” to become performative if it is disconnected from what is happening in the field. Winning models will get the “local-to-world” steering wheel on the right: use technology to empower people, not just platforms and make sure that new voices and collectives receive the recognition and support they need before being absorbed by the next algorithmic trend.
Q. What persistent problems can be resolved in blockchain and AI in live events, and what is not resolved for the musical economy?
The blockchain finally addresses ticket fraud, opaque divisions and the lack of possession of fans in events. Chain tickets are infiltrated and traceable, which makes the resale and fee flows transparent. AI cuts noise by personalizing experiences, automating support and giving meaning to the huge disorderly flood of fans that most sites are still unaware. However, technology alone will not solve the deepest problems in the music industry. Scene construction, confidence and conservation remain deeply human challenges. No blockchain replaces the bustle of credibility, nor the magic of a local scene which bubbles in defiance of the dominant current. Even the best AI cannot identify the artist defining the genre of next year without impetus on culture itself. For investors and advisers, the risk is to buy the illusion that data and automation can alone stimulate commitment and loyalty. The most convincing opportunities will mix digital tools with an understanding of the real world, creating systems that empower communities rather than optimizing transactions.
Q. What are the dead corners in the current “Web3 x Music” media cycle, and where should the advisers be caution?
There is no shortage of Pitch promises to “revolutionize” music with tokens and NFT. But the media threshing cannot replace an authentic connection, or build the basic energy that makes festivals last. Should advisers look beyond the number of users or the noise of discord and to ask: do local communities really thrive? Is community governance a real process or simply a fashionable word? Can this model attract and keep both serious talents and loyal fans? The winners will be platforms that will treat culture as a living ecosystem, not a rapid flip, and which balances chain innovation with the work outside the work of confidence.
– Ronald Elliot Yung, basic contributor to Ravedao
Continue to read
- Charles Schwab CEO said Crypto trading will soon arrive for customers.
- President Trump signed the first American cryptocurrency bill during the “crypto weekend”.
- JP Morgan plans to offer bitcoin supported loans.
