We all know about TikTok, a video creation platform that was banned in India in 2020. Even though the app was unable to make a comeback to India till now, the company is still a major player worldwide. In fact, there are a lot of creators in the space and it is giving a still competition to other video platforms like Instagram reels and Youtube shorts. This is why as TikTok has partnered up with a blockchain company I see a lot of growth scope here.
TikTok’s new partnership
The company has partnered with a music streaming platform Audius that runs on blockchain technology. They made the announcement on 17th August making this one of the recent blockchain + big company collaborations. But what does this mean for creators? And how can it change TikTok forever? Well, for starters it can bring a much effective payment system for creators that are less biased than Spotify or Apple Music’s payment system.
In those apps, the payments are made based on the overall revenue and the number of times a song has been played. This results in most of the money going to top creators. But in the case of a blockchain-based payment model, the revenue can be generated per song from individual users playing a particular song. This will make it much more transparent and remove biases.
For TikTok, this means if they are able to nail this partnership, creators could flock to their platform. This obviously doesn’t mean that they are leaving Spotify or Apple Music. But definitely means TikTok will gain a solid footing in the music streaming industry.
With this blockchain technology, payments to artists will be made in form of cryptocurrency $AUDIO which is a native of the platform. Now that is a problem, as not all artists are willing to accept payments in that form. This is because most of them still don’t understand crypto and are not able to digest the wild swings of the market. It also means that a payment received by an artist which seems to be fair now might not be in a couple of days if they don’t convert to fiat. So, yes there are some downsides and risks to this. And we have to wait and see how the markets react to this.
What are your thoughts on the fact that TikTok has partnered up with a blockchain company? And do you think that this will attract a lot of artists to the platform? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.