Tune.fm, a tokenized music platform, has adopted “Jam,” the native token of Hedera Hashgraph, a decentralized public network, to enable artists to get paid quickly once their music is streamed, as per a report Thursday.
“The existing industry business model is not profitable and squeezes artists. Streaming platforms pay the vast majority of their revenue to publishing companies, and they leave artists with only about 10% of that,” Andrew Antar, the co-founder of Tune.fm said.
The new system application creates a pay-as-you-go business model and enables fast micropayments for every time music streams between the artists and fans.
Hedera, as a decentralized ledger technology that combines peer-based security and transparency with transactional speed, is believed to place artists in control of their rights, while also earning instantly from their music than the blockchain that powers Bitcoin and other cryptocurrencies.
Hashgraph vs. Blockchain
Hedera Hashgraph, as per the report, provides a new way to arrive at distributed consensus collaboratively, without any need for trusted intermediaries, like banks.
With the “proof of work” task on a blockchain, achieving that consensus is nearly difficult, time-consuming, and slows down transactions on cryptocurrencies like Bitcoin or Ether.
“In closed networks, proof of work isn’t necessary, but that means sacrificing security,” the report reads.
Hedera Hashgraph deployed on Tune.fm platform requires no “proof of work” concept, which makes the platform faster for a transaction.
It uses a “virtual voting consensus algorithm,” which operates extremely quickly. Now, with the integration today, the Hedera-based Jam is expected to run transactions about 1,000 times faster than other Bitcoin, Ethereum, and other cryptos.
“Jam is the cryptocurrency for the global music economy on our platform. When the music gets played, the artist gets paid,” Antar said. It will be the denomination for many products and services, including affiliate referrals, gamification, in the future.