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Table Of Contents
What is Audius (AUDIO)?
The global music streaming industry was worth over $26 billion in 2019 and is expect to reach $47 billion in 2027. It points to a growth rate of 10% every year till 2027. Such a huge market is ripe for disruption, and that’s the market that Audius is targeting.
Leveraging Ethereum blockchain, Audius has built a music streaming platform to compete against the likes of Spotify, Amazon, among others. So, how does Audius aims to build a name for itself in a highly competitive industry? By offering better deals to artists. Following the core philosophy of blockchain technology, Audius aims to empower music creators and decentralize the music streaming and sharing industry.
Audius was founded in January 2018 by Roneil Rumburg and Forrest Browning. Both of them are leading Audius as Chief Executive Officer and Chief Product Officer, respectively. Roneil, Audius’ CEO, was associated with another company Backslash, a Bitcoin P2P payments company. Forrest Browning, on the other hand, was part of the Forbes 30 Under 30. Before Audius, he was the co-founder of Stacksware.
What Problem Does Audius Aim to Solve?
Audius co-founders believe that the current structure of the music industry hasn’t done anything good for the artists. The industry is worth billions of dollars. Yet, the artists only receive a meager 12% of the multi-billion revenue every year. NFL and NBA players, on the other hand, earn at least 47% to 51% share of the NFL & NBA revenues. It shows that the music industry has lots of distance to cover compared to the likes of the NFL & NBA. Another issue is that the artists have no control over the music distribution and no way to know who is streaming their music.
The large music studios control the music industry even today. But unlike the days of the past, there is no need for a studio built with millions of dollars to create music. Today, anyone can create music with inexpensive music equipment and software in the comfort of their homes. Central music streaming services began with an aim to rid the music industry of many of its legacy challenges. But they, too, came under the influence of the large music labels to sustain their business in the competitive music industry.
To tackle the challenges that the artists face in the industry and bring the true potential of the music industry to the fore, Audius leveraged blockchain technology to build a music streaming platform. Audius removes the middleman from the music industry and connects fans directly to the artists. It allows the fans to pay directly to the artists. All that artists have to do is distribute their music tracks through the Audius platform, and the fans will pay to hear the music tracks on the platform.
How does Audius Work?
Technically speaking, Audius isn’t only a music streaming platform. Instead, it is a music streaming ecosystem. The Audius project gives the power back to the music creators. With Audius, music creators have full control over the distribution, monetization, and steaming rights over their music tracks.
There are three players in the Audius network. They are the music creators, node operators, and fans. The revenue share of artists depends on the value they generate for the Audius network. As for the core segments of the Audius platform, it consists of five parts. These are Audius Token (AUDIO) – Stablecoins – Artist Tokens, Content Nodes, Content Ledger, Discovery Nodes, and Governance.
The Audius Token (AUDIO) – Stablecoins – Artist Tokens plays a crucial role in the Audius network by enabling a shared economy. Content nodes are user-operated, and they manage the hosting of the content and permission to access it. Content Ledger, on the other hand, is made of multiple components. It includes Ethereum blockchain, POA network, and L1 or L2 blockchain network. It is the centerpiece of the entire Audius Protocol and acts as a brain that powers the system.
How can an Artist use Audius Network?
Any artists who want to leverage the Audius network to distribute and promote their music tracks must agree to the open license of the network. It is crucial as once they agree to the open license, their music tracks will be available for streaming on the broader network.
The next process is handled by the Artist client, which creates pieces of the music track and uses special keys to encrypt them. After encryption, the music track is uploaded to the content node of the Audius network. Next comes the discovery nodes, which indexes new content on the network. Then, it makes the music track available widely on the Audius network.
How can Fans Listen to the Music tracks?
Once the music content is available on the wider network, the availability of content is managed by the content permissioning component of the network. When a fan wants to play the music track, a request is sent from their client to the selected content node of the artist.
If required by the artist, the client will also send payment proof or other proof to the content node. To service the request, the content node will create a proxy re-encryption. Both the public key of the fan’s wallet and the keys used to encrypt the music tracks are used to create the proxy re-encryption.
The Trio of $AUDIO, Artist Tokens, and Stablecoins
$AUDIO tokens have three roles in the Audius Network. These are security, feature access, and governance. The $AUDIO tokens are stakable, and thus, anyone who holds them can use their $AUDIO tokens for value-added services.
The $AUDIO token holders have a say in the governance of the Audius network. As for the number of votes that a $AUDIO token holder will have, each $AUDIO token represents one vote. A node operator, too, will require $AUDIO tokens. If a node operator wants to operate a discovery or content node on the Audius network, they must stake $AUDIO tokens. Thus, $AUDIO tokens play a crucial role in the governance of the network and act as a financial incentive for Audius users.
Artist tokens enable a music creator to engage with their fans on the Audius network. The artists are free to distribute the Artist tokens with their fans, which they can use to access exclusive content created by the music artist. $AUDIO tokens play a crucial role in the Audius system and the distribution of the Artist tokens.
If you are an artist and want to distribute Artist tokens among your fans, you must lock in $AUDIO tokens in a bond while your artist tokens are under distribution. A bond in $AUDIO tokens is a must as it ensures the fans that the artists they are backing on the Audius platform are in it for real and not for some quick gains. This rule also results in active participation from the artists in the management and distribution of the artist tokens.
Are you wondering what role does stablecoins play in the Audius Network? Stablecoins are asset-backed. For example, many stablecoins are pegged to the USD at a 1:1 ratio. It means that stablecoins are perfect for payments. Thus, fans can use stablecoins for micropayments on Audius.
There are 120,000,000 AUDIO tokens in circulation currently, whereas the total supply is 1,000,000,000 $AUDIO. At the time of writing, $AUDIO is ranked among the 250 largest cryptocurrencies by market cap. Considering that there are over 5000 cryptocurrencies in circulation, $AUDIO is definitely among the most credible tokens.
How to Buy Audius (AUDIO)
Audius (AUDIO) is available on the following exchanges:
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. They currently accept Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
How to Store Audius (AUDIO)
If you seek to make a major investment in Audius (AUDIO) or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support Balance (BNT).
Audius – The Music Streaming Industry Disruptor
The number of active users on the Audius platform stands testimony to their success. With over 3 million active users, Audius is among the top-most blockchain-enabled music streaming platforms. With more and more users and artists joining the Audius bandwagon, leaving the big boys of the music streaming industry, the blockchain-enabled music platform will gain further market share in the mainstream music industry.
Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.
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