Algorand bringing music to DeFi
The high-speed blockchain will be used to power an upcoming platform that connects investors with music artists.
The Algorand blockchain will be utilized on Opulous, an upcoming music service and payments protocol, CryptoSlate learned in a release today.
Opulous is a peer-to-peer platform to help increase artists’ access to capital without the need for traditional institutions such as banks. Behind it is Ditto, award-winning global music distribution and record label services company that has processed more than $1 billion in royalties to date.
“Musicians are often largely overlooked when it comes to traditional banking loans, or the terms are so unfavorable it isn’t worth their time,” said Ditto CEO Lee Parsons in a statement. He added, “Using DeFi, Opulous cuts out traditional banking, providing musicians a platform with minimal interest payments.”
The product claims to be the first-ever decentralized finance (DeFi) offering backed by music as an asset class. As such, Opulous will function as a loan pool wherein artists can borrow from and also contribute. As such, artists looking to borrow money will receive a loan guaranteed against their past streaming revenues with the copyrights they own held as collateral.
On the other hand, artists, and other investors, will also be able to pay into Opulous’ ‘Music Copyright Pools,’ earning 10% per annum on any contributions they make.
Opulous will use the Algorand blockchain to connect investors with artists needing a loan, driving fresh investment into the industry. Algorand’s smart contracts will automate payments and direct profits straight to investors. It will onboard staking from other parties to enable the widest possible backing.
Using Algorand’s technology will allow Opulous to cut out traditional banking, providing musicians a platform with minimal interest payments, while giving investors the chance to stake a claim in one of the fastest-growing industries in the world.