Problem: The control of the music in the traditional model is in the hands of the corporations and labels. A fraction of the funds are eventually paid back to the artist.
Solution: Resonate, another Blockchain startup, is working on a solution to use this technology to bypass the corporations and labels. As you listen to music, you can make micropayments to artists – directly to them. Micropayments are cents or fractions of cents that are possible through the newer cryptocurrencies, which may be divisible by tiny fractions of a penny USD. All of these transactions are stored on the distributed ledger, essentially cutting out all of the middlemen. Baked into this are smart contracts which are encoded into the chain and automatically perform actions that normally humans would be oversee, i.e. the payouts.