Web 3.0 is the name for the third generation of web technologies (Web3). The World Wide Web, which most people just call "the web," offers tools and services for making websites and apps.
The main thing that makes up the internet is the World Wide Web. Many of us now spend money every month on Spotify or a similar service, which gives us access to any music we want at any time.
But does the fact that we have so many choices keep us from getting closer to music and artists than we did in the past? Rob Duffin, who helped start Mixtape Social, says that this is without a doubt the case.
This community-based software for streaming music was made with the idea that music is often about more than just the beats, notes, chords, and samples that make up a track.
The goal is to bring back the sense of ownership or personal connection with songs that sometimes feels lost in the age of streaming by letting users tag their favorite songs with memories and stories about what makes them so important.
He just joined me for a webinar about Web3 and the music business, and he said, "We think about the important people in our lives, and somewhere there's a song that reminds us of them. Mixtape makes that link possible and lets the story be told.
Mixtape is a web3 app because it uses the creator economy and blockchain technology. It lets fans pay the artists they like with a cryptocurrency token called Mixtape Token.
Duffin says that as the roadmap grows, the tokens will become even more useful and can be used to get access to special content.
The idea is that the open, persistent, and collaborative nature of the metaverse, which we can think of as the "front end" of web3, may be perfect for creating the social listening and sharing environments needed to bring back that connection between listeners and artists.
Duffin says that Web3's potential lies in the fact that it can lead to "A completely different place where artists have control over their work, are paid fairly, and fans can talk directly with their favorite musicians... Even though some of this is already happening, blockchain will really open the floodgates."
Blockchain was first used in cryptocurrencies. Satoshi Nakamoto, who came up with BitcoinBTC +1.3%, saw it as a way to get rid of the inefficient system of middlemen that was needed to run financial services.
Music is another area where artists and audiences have always needed middlemen to connect them. In the past, these were record labels, but now they are streaming services. Both of them take a big cut, which means that the musicians get less of the money.
Dunffin tells me that, "This doesn't mean that middlemen don't have a place in the economy. There are a lot of labels that help musicians a lot when they're recording, when they're performing live, and in other ways where they might not know much.
But musicians and web3 developers like Duffin and Jon Cheney, CEO and co-founder of the Ocavu network, think that blockchain, cryptocurrencies, and non-fiat tokens (NFTs) will make it so that middlemen who just help with transactions won't be needed as much.
In the words of Cheney, "Web3 will do the job better and more accurately, and it won't need expensive middlemen who take advantage of people.
With smart contracts from blockchains like EtherETH +2.2%eum and PolygonMATIC +0.7%, platforms and apps can be set up to automatically pay royalties to artists at the rate written into their contracts.
When a fan presses the play button, a transaction can be done instantly with a cryptocurrency. This gives musicians more control over how their work is heard and appreciated.
In particular, the blockchain and cryptography parts of web3 pose a problem that can't be ignored. With any new technology, there are bound to be problems.
This is because some blockchain algorithms need a lot of computing power to work. These algorithms are known to be very power-hungry and may cause a lot of energy use and pollution.
Any platform that wants to compete with streaming services and make web3-based music solutions popular would have to deal with this issue. One possible answer is to make "proof-of-stake" blockchain algorithms.
Even though many of the best-known blockchain networks, such as Ethereum, don't support it right now, these are much more effective and use less power.
The other big problem with web3 technology is the way it is regulated. People think of the environment as being in a "wild west" state right now because there aren't any rules or regulations. This makes it clear that there are more scams and illegal activities.
Suppose you don't know what you're doing. In that case, it's easy to get burned when you put your toe in these waters.
What consumers may see as an acceptable level of risk when doing things like financial speculation with cryptocurrencies may seem completely unacceptable when we just want to listen to music with our friends.
Cheney says, "Mass adoption needs rules, and end users need to be protected. Even though it's being worked on, I don't think we're safe from the many scams and Ponzi schemes that are out there yet.
There is definitely a lot of excitement about how blockchain, web3, and metaverse technologies could be used in the music business.
Music has always been about socializing and doing things together, and new platforms built on immersive and interactive technologies give people new ways to share and enjoy music together.
When combined with blockchains, cryptocurrencies, and smart contracts, this could also lead to better deals for artists and more ways for fans to make sure their money goes to the people they want to help.
If you click here, you can see what I talked about with Rob Duffin, co-founder and senior vice president of Mixtape Social, and Jon Cheney, CEO and co-founder of OCAVU.
In it, we talk about how web3 might change the future of music in other ways. Sign up for my email list and read my new book Business Trends in Practice to stay up to date on the latest developments in web3 and other business and tech trends.
