Published
Wed, May 3, 2017, 13:02
- The streaming giant acquired Mediachain Labs last week.
Spotify has purchased a startup specialising in blockchain technology.
Blockchain is an increasingly prevalent term used for a form of secure decentralised data storage. It facilitates the use of cryptocurrencies like Bitcoin and has applications in a few industries, especially those where secure data storage and record keeping is important, such as banking and insurance.
By purchasing New York-based blockchain startup Mediachain Labs, Spotify aims to use the technology to better service the payment of artists and curators on the streaming platform. In a blog post, Mediachain said they had been "acquired by Spotify to further the streaming leader's journey towards a more fair, transparent and rewarding music industry for creators and rights owners."
It is not the first time blockchain technology has been used in the music industry. Russian royalty collection agencies are reportedly teaming up with IPChain, a government-funded platform, to use the blockchain to monitor exchanges in intellectual property. On the other side of the coin is the ethical streaming cooperative Resonate, which uses the blockchain as the basis for a streaming service that's jointly owned by artists and users.