With Digix tech, artists can turn music into gold
In March we reported on Ujo Music's goal of offering musicians a platform for sharing profits with collaborators, paid out in Ether digital currency through self-enforcing smart contracts.
Digix Global, an organization launching recently on the Ethereum platform, will allow for transacting in digital tokens representing ounces of gold. The gold reserves are held in storage in Singapore and audited by independent accounting firms.
This potential for musicians to turn song ideas into gold is made possible by the peer-to-peer distributed ledger of the Ethereum blockchain, which can reliably keep track of the private keys associated with real world assets.
Just a week ago, Digix funded its operations through a crowdsale, similar to how Hyper Light Drifter, Super Russian Roulette and other independent games have raised development funds on Kickstarter. Running the crowdsale entirely on the Ethereum blockchain, Digix raised $5.5 million USD without the oversight of an Indiegogo or other trusted third party. It all transpired in under twelve hours time. (Disclosure: the author participated and purchased some tokens.)
The equivalent of backer rewards delivered during the Digix crowdsale were DGD tokens, representing a stake in what is termed a Decentralized Autonomous Organization. DAO participants can exert influence on the future direction of the organization.
"Proposals are generalised to include things like fixing a bad link on our website, to building out major DApp peripherals like a p2p loan platform," says Digix co-founder and CEO Kai C. Chng on the subject of decentralized applications (DApps). "There will be a budget, milestone, clear objectives and proposed timeline to complete such proposals. DGD holders who think it is fair, reasonable and would benefit the gold platform can pledge to approve or reject such proposals."
The other token associated with Digix is DGX, which can be transferred to a peer over the internet at the speed of an email. Each unit represents a single gram of gold.
In the same way Ujo Music aims at at rolling out tools for musicians to earn Ether digital currency, Digix and other Ethereum DAOs will enable artists to transact in all manner of valuable, real world assets. In the foreseeable future, turning music into gold using blockchain tech will be no more otherworldly a feat than funding a Patreon campaign.