Web3 vs Web2: A Quick Lesson on Blockchain in the Music Industry
Why Blockchain is Superior to Platforms Like Spotify
The music industry, which I know best, serves as a prime example of how blockchain technology surpasses traditional platforms like Spotify that are often seen as not artist-friendly. This can be applied to almost any industry.
Payment Flexibility in Web3
In Web3, users have the flexibility to pay with crypto from their wallets or with a card – a feature not available in Web2. Setting up a wallet takes just about 10 minutes, including transferring funds.
The Numbers: Crypto Payments in Web3
Paying with crypto: The artist receives approximately $1, and the rest goes to the platform - distribution fee and GAS fee, which is the blockchain fee.
Direct wallet to artist/platform transactions: The transactions happen instantly due to smart contracts, which automatically and instantly execute the terms of the agreement.
The Cost of Card Payments
Card payments: While the artist and platform situation remains the same, it costs the fan an additional $0.99, which could have been spent on purchasing another song.
Questioning the need for intermediaries: Why pay an extra $0.99 to someone just to pass money to a favorite artist?
A Different Economy, Philosophy, and Community
Web3's music market vastly differs from the traditional one, offering a new economy, philosophy, and community. Moving from Web3 to Web2 is easy, but the reverse is challenging due to the unique expectations and approach of the Web3 community.
Web3's Community and Engagement
The focus in Web3 is on rewarding individual fans and engaging with them directly, fostering a community open to dialogue, discussion, and participation.
Streaming Statistics: A Comparison
Streams for $1:
In Poland (for example): 715 streams = $1 if owning 100% rights.
With a label (20% ownership): Requires 3,573 streams for $1.
Engaging fans in Web3: Is it harder to interest even one person daily in Web3, who might buy your song and receive exclusive bonuses, compared to Web2?
The Power of the Web3 Community
Even if your fanbase is skeptical about Web3, there's an existing Web3 community ready to embrace what you offer.
My Experience and Advice
Comparing myself to Trinity from 'The Matrix,' I explain the new world of Web3 to those familiar with the traditional Web2 industry. The effort in Web3 involves being active with your community, which differs significantly from the broadcasting nature of Web2. Each reaction in Web3 can potentially lead to monetization, turning every interaction into something meaningful for both creators and the community.
Digital Presence in Web3
Web3 requires an authentic digital presence, not just being another number on someone's playlist. Consider the investment in your artistic work and what you receive in return. The music market, as we know it, is competitive, but only about 1% succeed according to statistics. So why not cultivate your own garden, even if small, to nourish both you and your community?
Web3 Market Dynamics: Violetta Zironi vs Snoop Dogg
Snoop Dogg in Web2 vs Web3:
On Instagram: 83 million followers.
On Sound: 7.4K followers and 14.2K NFTs sold.
Violetta Zironi in Web2 vs Web3:
On Instagram: 34K followers.
On Sound: 1.4K followers and 2.4K NFTs sold.
Insight: In the Web3 world, your Web2 status doesn't matter – everyone starts afresh. It's a market reset, offering equal opportunities.
Here is piece of my converstation with Violetta Zironi after her statment about 0$ from streaming:
My Experience with Web3: The hey.xyz Case
My hey.xyz Post Performance:
Views: 1.2K.
Likes: 110.
Shares: 20 (mirror/quotation).
Comments: 14.
Collection Adds: 30 people added my post to their collection, turning it into an NFT for potential secondary market trading.
Insight: In Web3, valuable content is appreciated and authenticity matters. Each engagement has the potential for monetization.
Real example: DAGADANA on Sound
DAGADANA's Web3 Journey: Launching our first Polish single on Sound, "U Jeziorecka (By the Lake)," on 1st December 2023 at 14:00. This marks an important moment and a test to see if such ambitious, niche music can resonate in the Web3 space.
https://www.sound.xyz/dagadanaband/u-jeziorecka-by-the-lake
Limited Edition Collection: The release includes a limited collection of 101 pieces and extra bonuses for those who collect all 11 songs: 4 NFTs by The Simples by Konrad Kirpluk, 4 NFT artworks by Olya Kravchenko, plus Hi Res GOLDENBLACK DIGITAL VINYL files from Polvinyl - Vinyl Pressing Plant of the album "Meridian 68."
Try It Out
For those interested in exploring this new realm, feel free to reach out to me at kontakt@panwinyl.pl for guidance.
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