What if we could replace antiquated physical contracts execution to fit with the new digital music age and real-time commerce? Well, today we can, and the technology is known as smart contracts. Just as the blockchain has emerged to claim its place as the up and coming financial instrument of the future, smart contracts have become an equally hot topic.
Electronic contracts, or smart contracts, between labels, distributors, and artists, can reshape the industry to ensure transaction and payment efficiency as well as increased transparency. Smart contracts are primarily a computer program whereby all parties can agree to the contract electronically, and it can also be enforced electronically.
This can be achieved through the introduction of blockchain technology. In the case of an executed smart contract, the blockchain would keep track of the ownership rights ensuring that the proper parties are paid in accordance with their smart contact. The more sophisticated the code, the more automated, self-executing, and “smarter” the contract.
Read Article: DataArt