By Wesley Mascenik
In 2009, Satoshi Nakamoto, the creator of Bitcoin, developed the blueprints for the first block chain. It was made as a means of exchanging currency without the need for any sort of middle-man, such as a bank, and originally was only for the use of moving Bitcoin. It worked by storing information across a network of personal computers, so that there is no one centralized system that could be targeted to manipulate information or destroy data. Records of information are stored inside of users’ computers as bundles of information, which are organized systematically using a method called cryptography, which is what protects information from being tampered with.
This technology had a number of possible implementations for a myriad of different industries, one example, of course, being the music industry. Before the streaming platforms and digital distribution of media that we know today, music was sold mostly as CDs, which relied on physical distribution and created a number of costs for producers to deal with. Artists’ records and merchandise would be sold through a record company who would create the physical product, and end up keeping a large portion of the profit. But with the creation of the block chain, it became possible for artists to distribute their work via digital downloads, and eventually streaming platforms, making it easy for them to collect a much larger portion of their revenue.
This is just one of the many positive externalities that the block chain created for the music industry, other examples include making music more accessible to the consumers, and encryption systems making piracy of material much more difficult. Overall, the creation of the block chain system resulted in innovations to the way we consume media as a whole, and major growth within the music industry.
Bibliography: