SINGAPORE: It's a concept still in its infancy and it might take some time before it hits the right notes, but cryptocurrency is currently being explored as a funding source to support budding talents in the local music scene.
A platform run by a collective of like-minded musicians and supporters, known as The Great Wave, uses cryptocurrency to create a stash of funds for artists to use.
They can use these funds to produce and release their original works.
โIt is powered by a very unique vehicle and what we call a DAO (decentralized autonomous organization). Think of it as a company run by a number of different smart contracts,โ said Mr. Clarence Chan, who is part of The Great Wave founding team.
โSo what that allows us to do is promote trust between people who have no reason to trust each other. We can unite, we can finance the work of artists through this vehicleโ.
HELPING MUSICIANS MAKE WAVES
They are virtual agreements between two parties, executed as transactions before being verified and bundled.
They are then added to the blockchain, so the terms and conditions of the contracts cannot be changed.
To ensure the process is in order, users can view the contract using a verification website like Etherscan.
Through the use of DAO, The Great Wave has grown its pool of artists, including those from South Korea, to more than 10 in less than a year.
Independent record label founder Jon Chua thinks The Great Wave could be a lifeline, especially for smaller players in the industry.
Mr. Chua, CEO of Zendyll Music, said: โIf I sell an NFT (non-fungible token) today, I will see my money today.
โBasically, it's immediate, whereas on streaming platforms you might get a million streams in January (but) you only see your money in February of next year. So I think this really helps a lot of independent musicians (and) independent record labels."
However, he also feels that artists must first understand how blockchain technology works before jumping on the bandwagon.
โI think education and understanding are important. My advice would be that you should first be able to dive into that space and discover it, before you want to use it for your work,โ Mr. Chua said.
โYou have to learn to code before you can apply for a job as a coder. So I think for artists it's pretty much the same and it might not work for everyone."
