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.

--

--

--

Recommended from Medium

GNY: Machine Learning on the Blockchain.

Why we’re Building on StarkNet

Web3 vs Web2 and what part does Global Coin Research play in this

Annoucing New Listings on ChainSwap

KLEKS ACADEMY: ENTERTAINING INVESTORS VIA MOVIE SERIES, ENRICHING THEM VIA BLOCKCHAIN ASSETS

Coverage on Techsauce — How a blockchain-based search engine is changing data monopoly

nOS dAPP Getting Started Guide 2

Solidity v/s Move v/s Clarity: The Battle of Smart Contract languages.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Charles Wade

Charles Wade

More from Medium

What is the Revival DeFi Ecosystem

Liquid Staking on Bardi: A better way to put your crypto to work

Cryptocurrencies have exploded in popularity

CoinDCX- Weekly Crypto News: Vol 2