The need for a specialised music blockchain for IP management

While general-purpose blockchains have been valuable testing grounds for real-world asset tokenisation, their one-size-fits-all approach falls short in addressing the detailed requirements of the music industry. Below, we outline the key challenges that necessitate a specialised blockchain for music IP tokenisation.

Market structure integration

The music industry is a complex ecosystem involving many stakeholders—from artists and labels to publishers and distributors—each with specific roles, rights, and revenue streams. Implementing blockchain technology that can adapt to this intricacy is a non-trivial task. While general-purpose blockchains are programmable and adaptable to many contexts, their generalised nature makes it difficult to construct highly specialised solutions that seamlessly integrate with existing industry norms and workflows.

Identity management

The legal and regulatory nuances of the music industry require stringent identity verification mechanisms. While there are decentralised identity solutions, these may not fully meet the multifaceted regulatory compliance requirements unique to music IP. The absence of an optimised identity management system currently hinders the verifiability and legality of transactions, thus becoming a regulatory liability.

Confidentiality

In a business where negotiation and contractual discretion often matter as much as the assets being traded, the open-ledger model of general-purpose blockchains can be a double-edged sword. The lack of transactional confidentiality on these platforms could deter stakeholders who require a secure and private trading environment.

By designing a dedicated blockchain architecture tailored for music IP tokenisation, we can integrate these essential features from the ground up. Such a specialised solution would better serve the specific demands of the music industry, facilitating a more fluid and compliant market for music IP assets.