Blockchain transforms industries in addition to financing. In this crypto for advisers newsletter, we shift focus from traditional investments to explore a disruptive blockchain case case in the music industry. Inner Phull, CEO and co-founder of Pixelynx and Creator of Chorus Protocol, explains how music rights and royalties on-chain transform ownership and why this matters to artists and investors.
Then Ronald Elliot Yung from Ravedao answers questions about these changes and how they affect investments in Ask an expert.
– Sarah Morton
Remix, Rights & Revenue: Why Onchain Music Infrastructure is the Future
A basic shift that redefines how music is protected, controlled and monetized.
Introduction: A broken symphony
The Digital Revolution has authorized musicians with unprecedented tools to create, collaborate and reach the global audience. Unfortunately, this rapid development has come up with its own set of challenges. While the Internet has rewritten the rules of creation, distribution and consumption, the methods we use have to protect and make money on creative content, such as copyright laws, licensing models and royal styles, did not keep up. In this environment, artists are struggling to maintain control of their work with insufficient attribution and lack of justice compensation.
For advisers, you can have clients in the music industry or investors seeking to invest in these assets. Understanding the development of this industry can be a strategic advantage when assets move on the chain.
The systems that controlled the industry were originally designed in a pre-internet era where the concepts of global digital rights and licenses were not yet considered. We are now in a situation where Tiktok hits are often born by unauthorized samples, AI-generated music floods streaming platforms, and artists are struggling to earn life’s stay.
Legal paths to take advantage of new opportunities, such as AI or UGC, remain locked behind gatekeepers, older contracts and unclear ownership data. Enter infrastructure on the onchain Rights: A shift that can redirect how we protect, control and make money on music.
The problem: Rights are fragmented and creators lose
There is a reason why music on social media has not yet generated a revenue stream for artists, which is why “Metaverse” lacks music and why AI is perceived as a threat. Existing copyright systems do not adequately address the complex web of ownership and use rights associated with modern applications of music, such as remixing or user-generated content on social media platforms.
The current complexity costs the industry billions, as this system often leaves creators underpaid and legally vulnerable. Creators change to ownership content where they can track the use of their creations and consumption and get paid wherever their assets are consumed.
Future: Onchain Rights Infrastructure
Onchain Rights Infrastructure redefines the backend of the music industry. It provides the legal gardens with undisputed, verifiable ownership of their work on rights transparent programmed for registration. This transparency and programmability enables music to move effortlessly across platforms, applications and media, automatically trace attribution, verify the origin and eliminate the friction of traditional licensing processes. Artists immediately receive payment and their rights are enforced in real time.
Imagine that if each track came with a smart contract, one that stated rights holders, the ownership percentage and the licensing conditions in code. If you wanted to use the song in a remix, synchronization or test, the contract will tell you what is allowed and automatically distribute royalties.
That’s what the infrastructure on the chain enables.
On a blockchain the rights may be:
- Transparent – Anyone can see who owns what
- Programmable – Remix conditions, divisions and conditions are coded
- Traceable – derivatives and remixes are traced in real time
- Composition – Rights become building blocks, not walls
If the music industry wants to take advantage of new technology and accommodate tomorrow’s digital consumers, it needs a more agile and forward approach to music rights management and license. Onchain Rights Infrastructure is the answer.
Understanding the shift to infrastructure to chain rights is no longer niche; It is an important part of the future. Whether you are advising IP holders navigating in their royalty streams or helping investors explore the Music IP as a growing asset class, it is important to be a growing asset class. Like streaming reshaped consumption models, the on-chain infrastructure is transforming the ownership system; Those who understand it early will be best placed to grow in the evolving digital economy.
– inner Phull, CEO and co -founder, pixelynx
Ask an expert
Question: In a world of corporate festivals and algorithic playback lists, how can decentralized models enable new music scenes, community management and fan ownership?
Music has always thrive in pockets: Underground clubs, bedroom manufacturers, DIY scenes. Blockchain now gives a chance to bring these microcultures to the world and place influence in the hands of those who live the culture, not only those who make money on it.
For investors, the upside is early access to unused cultural capital and the energy of self -organizing communities. Most users still crave experiences, not just technology. No protocol can produce authenticity, and it is easy for “ownership” of hunting to become performative if it is disconnected from what happens on Earth. The winning models get the “Local-to-Global” flywheel on the right: Use of technology to strengthen humans, not just platforms and ensure that new voices and collectives receive the recognition and support they need before being absorbed by the next algorithmic trend.
Question: What sustained problems can blockchain and AI FIXE alive events, and what is still not solved for the music economy?
Blockchain finally addresses ticket fraud, opaque divisions and the lack of fan ownership in events. On-chain tickets are manipulation-proof and traceable, making resale and royalty streams transparent. AI cuts through noise by personalizing experiences, automating support and giving sense of the huge, messy flood of fandata that most venues still ignore. However, technology alone will not solve the most deep problems of the music industry. Stage building, trust and curation remain deeply human challenges. No blockchain replaces the hardship by earning credibility or the magic of a local scene bubbling up contradicting the mainstream. Even the best AI can’t see next year’s genre-defining artist without a heart rate on the culture itself. For investors and advisers, the risk of buying into the illusion that data and automation can only create commitment and loyalty. The most convincing opportunities will mix digital tools with real-world understanding and create systems that provide communities instead of just optimizing transactions.
Question: What are the blind spots in the current “Web3 X Music” hype cycle and where should advisers exercise caution?
There is no shortage of tone tires that promise to “revolutionize” music with tokens and NFTs. But hype alone cannot replace authentic connection or build the grassroots energy that causes festivals to last. Advisers should look beyond user counts or disagreement noise and ask: Is communities actually thriving? Is community management a real process or just a buzzword? Can this model attract and preserve both serious talent and loyal fans? The winners will be platforms that treat culture like a living ecosystem, not a quick flip, and as a balance on chain innovation with off-chain work to build trust.
– Ronald Elliot Yung, core contributor at Ravedao
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