With the rise of music streaming services, the collecting and distribution of royalty payments in the music industry has only become more complicated. The distributor must reimburse the music’s copyright holder each time a song is streamed online or played in the background of a TV show, for example—but there might be disagreements about the accuracy and compensation rates of such royalties.

By implementing contract conditions among qualified parties, smart contracts created base on blockchain and linked to a specific piece of music could add precisionand trust to the process. This would enable more accurate tracking of a song’s royalty payments status, and greater transparency in contract conditions and revenue distribution among artists and other stakeholders.