Don Tapscott, CEO of the Tapscott Group and the co-author of Blockchain Revolution, appeared on an interview hosted by multi-billion dollar management consulting firm McKinsey Company, to discuss the serious disruptive nature of the blockchain technology and its applications.
Circumventing the realm of the financial world, Tapscott believes the application of the blockchain technology can reach any industry in an economy and seriously disrupt it.
The basis of Tapscott’s argument derives from the blockchain network’s ability to handle all sorts of data on an irrefutable ledger. One well known application of the blockchain technology is bitcoin. The digital financial network of bitcoin possesses the power to settle payments with maximum freedom of transaction.
This financial application of the blockchain network can be merged with a smart contract-based platform which can operate complicated tasks, including the establishment of a contractual agreement between two parties or multiple parties which could involve the processing of financial transactions or properties.
During the interview, Tapscott takes on the music industry as an example. Musicians in the music industry have always expressed their concerns regarding the revenue margins between the musicians themselves, label companies, and music distributors.
In most cases, musicians split their revenues equally with the label company. After a substantial portion of their revenue is taken away, music distributors demand a big section of the pie, and in the end, musicians are left with the smallest piece of income.
Tapscott explains that the implementation of the blockchain network can allow musicians to directly track and observe the flow of revenues with their music. Considering the real-time visibility and transparency a blockchain network can provide, multiple parties, including the label company, musicians, and distributors can set up a smart contract to distribute money on a more open environment.
“How about you’re going to use certain music for a ringtone. Here’s the smart contract for that. Imagine Heap, who is a brilliant singer/songwriter in the UK, best selling recording artist, has now been part of creating Mycelia, and they’re working with a company called consensus, using the Ethereum platform, and she’s already posted her first song,” said Tapscott.