The Stellar Potential of Introducing Blockchain to the Electronic Music Landscape

Bitcoin is the most popular cryptocurrency in the world, well-known to investors looking to diversify their list of holdings and secure their portfolios against the woes of inflationary spikes.

However, since its introduction to the market, it hasn’t been just BTC that came into the limelight, but the system that hosts it as well. Researchers increasingly see the blockchain as a way to help virtually all industries and business sectors become more efficient and transparent. And although it can seem hard to believe, it seems now that the decentralized ledger is set to revolutionize electronic music as well.

The challenges 

Although primarily associated with crypto trading, investment, and decentralized financial services, there’s way more to the blockchain than that. Since the technology is industry-agnostic, it has the potential to transform any sector that relies on interactions. In 2022, the electronic music market was valued at approximately $10,2 billion, with a dedicated and loyal fanbase numbering people from all over the globe.

This subcategory of the music industry is considerably more fragmented than others since many artists, DJs, festivals and venues operate independently. Since they lack the benefits of a platform that can bring everyone together, it’s tough to ensure communication, which can reduce the contributions fans bring to the environment. There’s also a lack of better engagement incentives, meaning regular show attendees have little motivation outside their love for the music to continue supporting events.

And while that’s no problem for a sizable portion of fans, there are also some that most likely need a little more convincing to remain community members.

The benefits 

But can the blockchain truly solve all these issues, or is it all smoke and mirrors? With features like decentralization, increased transparency and improved security functions, the tech can create more solid and cohesive communities, helping them develop over a longer time. Loyalty-based programs based on the blockchain can improve customer retention by offering rewards through unique tokens such as inscribed art pieces.

Having a shared ledger could also provide a medium through which fans can interact with each other, as well as with the artists. Transactions would also be more accessible and safer. The blockchain operates irrespective of time zone and geographical borders. Producers and DJs can also collaborate more efficiently, promote industry growth and create a new, creative space that is oriented on joining forces to bring new music to fans.

Given the lack of need for intermediaries when using the blockchain, the clubs or venues and the DJs whose shows they host will enjoy more transparent discussions and revenue sharing, eliminating unfair practices from the industry. The clubbing and rave subculture was based on an atmosphere of togetherness, understanding, and empathy for others and the community, as well as ensuring everyone had a good time and experience. Blockchain tech primarily operates on the same ideas, showing the two environments are compatible.

Party-to-earn 

Many in the crypto landscape are familiar with the play-to-earn concept, where individuals earn Bitcoin as a reward for completing tasks within games, winning points and going through the levels to achieve higher scores. However, part-to-earn is relatively new. Klubcoin, the first global cyber currency aimed at electronic music fans and festival goers, is responsible for introducing the concept. Users can receive instant rewards when making purchases powered by this crypto.

It also allows fans to earn exclusive access to different events, including sold-outs, as well as meetups and parties that are reserved solely for community members. You might also be eligible for food and drink discounts and refunds on all purchases. The coin has already fostered partnerships with well-known names in the industry, such as Bootshaus night club in Cologne, Germany, DJ Mag, Caprices Festival in Switzerland, as well as Motel Particulier and Pacha Barcelona in Spain. As more people become familiar with the concept, the ecosystem will continue to expand to include more alternatives, creating more direct interactions between fans and the artists and clubs.

The engagement

As cryptocurrencies become more popular and accessible, more people are intent on trying them. Some of these individuals are electronic music composers, DJs and producers themselves. One of the most notable examples is Aphex Twin, one of the most influential artists on the scene. In 2021, he entered the crypto world by selling an audiovisual piece for 72 Ether, the equivalent at the time of approximately $127k.

The art piece was sold at an online auction, where the starting price was 1ETH, or $1,800 in 2021. “/Afx/weirdcore” appears to be a distorted and animated picture of the DJ’s face. The piece, which includes an original sound made by Aphex Twin himself, is a nod to his 1995 studio album “I Care Because You Do.” At the time, the NFT environment was booming, attracting large swathes of fans, and while the atmosphere has cooled down a bit since then, there’s no doubt that if another artist did something similar today, fans would immediately flock to purchase the non-fungible token.

Back in December 2020, party brand Space Yacht was also preparing to drop its second NFT collection, which featured designs of the company’s core logos, smiley faces, pizza slices and trademarked motto. Co-founder Rami Perlman released original music to go with the digital artwork. Well-known for hosting over 150 EDM global events yearly, the pandemic affected the company just like it impacted all parts of the sector. The blockchain was a way to remain in touch with the fans.

Steve Aoki designated himself as a crypto believer, calling Bitcoin and altcoins “the future” and claiming that Web3 will ultimately begin the new communication method. He also claimed to have earned more from these ventures than music and other record label activities. David Guetta had an NFT sale related to his charitable United At Home concert series. The French DJ also sold his Florida penthouse for 374 BTC, roughly $14 million at the time.

The blockchain is a relatively new technology, but it already shows a lot of potential across many different areas, including electronic music.

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