WHITEPAPER
A decentralized music landscape
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Abstract
Potentiam is developing decentralized music platforms that leverage blockchain technology to guarantee fair compensation for artists, transparent and reliable payment rules, and extensive music content. Potentiam introduces its digital token (PTM) for payments and revenue management for both artists and consumers. These tokens create new possibilities in the music industry: Artists can advertise, distribute their music, meet potential collaborators and earn rewards in the form of PTM tokens.
The smart contract on the blockchain collects hashes of relevant information, which act as the basis for revenue calculations for each artist. This data is available publicly, and its immutability can be checked by comparing hashes. Once transparency goals are met, with the Potentiam smart contract, we will introduce additional governance mechanisms such as a Potentiam DAO (Decentralized Autonomous Organization). It is for voting on new features, artist's revenue sharing, and a variety of possibilities. Due to the fast-paced emergence of blockchain technology and high fees within the Ethereum ecosystem, Potentiam has decided to start with a hybrid technology stack running an off-chain layer with a bridge on-chain. This whitepaper will describe the structure of the music industry and the existing problems as it operates today, and how the Potentiam network plans to use the blockchain revolution to empower artists who are the reason for its existence. Potentiam has based its system on bringing the most secure, fast, and reliable platform for all its investors and trusted partners. Potentiam will reward PTM holders.
Introduction
Potentiam is an Ethereum based, consensus-backed music software services company for the modern economic landscape of music.
To execute Potentiam's vision and goal, we're building and creating the key technologies and protocols required to build decentralized music applications that offer a range of services to empower its users. We aim to provide the immediate benefits blockchain and decentralized technologies offer (self-sovereign identity, portability, provenance, payment channels, security) while balancing the use of infrastructure to provide a world-class user experience and legal compliance.
We empower music through a transparent and open source ecosystem. Our mission is to build a resilient, sustainable, and accessible infrastructure for artists, supporters, music writers, marketers, and developers. And, with the creation of a fair, efficient, and decentralized music ecosystem, we hope to enable opportunity and creativity to flourish.
Mission
Our Mission is to:
- Provide every holder with a simple and effective way to gain exposure to digital assets.
- Give an equal chance of success to music artists.
- Lower the barrier of entry to a more advanced financial ecosystem.
- Operate as a community-focused and community-driven digital asset, fully decentralized in every sense of the word.
Our Vision
Potentiam Network is the blockchain music platform run by music lovers, for music lovers and we’re not just talking about consumers. No, we’re developing a one-of-a-kind network for musicians, artists, marketers, content writers, stagehands, and other key players in the music industry to connect and collaborate in new and exciting ways. The network’s core purpose is to facilitate interactions between music creators and consumers without intermediaries by building interconnecting platforms that offer the same services at a fraction of the price. Through Potentiam, music creators can earn more, and music lovers receive rewards for their contributions. Potentiam is creating a revolutionary ecosystem to bring more people into digital assets, helping to maintain their privacy, security, power, and autonomy.
Problems In The Music Industry
Although the global music industry is growing, the current bureaucratic system of labels, artist managers, and distribution services has choked small artists. Those that cannot negotiate sponsorship deals with big brands and who rely on direct artist-to-fan sales.
The current structure of the music industry concentrates power in the hands of relatively few middlemen, such as record labels and their subsidiaries. Record labels invest around $4.5 billion annually into marketing and A&R, and in turn, are still gateways between creatives and potential commercial success. Not only do they determine which creatives reach a wider audience, but those fortunate enough to achieve commercial success will also be lucky to see 10% of the revenue generated from the proceeds of their creations. In short, the problem is the structure of the industry itself. Its outdated institutions not only restrict growth but also consume a majority of the wealth the market generates.
Solution Based Ecosystem
The music industry has undergone two major transitions in the last 20 years. It includes the change from physical records to digital music and from music downloads to internet streaming. The first revolution made music more accessible, while the second aided in the industry's expansion.
Potentiam's underlying technology gives fans a new identity, allowing them access to any sector of the industry. Fans can participate in parts of music production, allocation, consumption, rewards, and profit distribution. It will foster the growth of extensive networks and allow original music produced and distributed fairly.
Blockchain Technology In Potentiam
Within the Potentiam ecosystem, blockchain introduces a new space. It allows unparalleled protection and openness in the music industry.
In Potentiam, Blockchain is used to achieve decentralization, irreversible storing of artist’s data, and the automation of certain everyday activities. The technology can’t do it alone, although it provides a secure, verified information foundation.
The underlying blockchain infrastructure provides the required framework for keeping track of legitimate possession, validity, and ownership for the Potentiam music platform.
Benefits of Blockchain Technology In The Music Industry
Blockchain will create an interconnected online marketplace where music creators will be able to sell their music. Blockchain provides public data about music without revealing the identity of the collectors.
- Royalty systems
- Revenue shares for talent
- Affordable music platforms
- Micropayments for artists
- Digital Rights Management
- Securing Digital music
- Fighting piracy
THE Potentiam Network
Potentiam network is an all-encompassing Ecosystem that allows creatives to control their destiny. At its core, the platform is a social network where composers and performers can create their accounts to advertise themselves, seek out other artists for collaboration, or form groups/bands. There is an opportunity to connect directly with music tastemakers/influencers on the platform. Also, be a part of a reward system controlled by fans who also make up the network. It is a reward system like no other, a remuneration process that will change the music industry for the better.
THE Potentiam Token
The Potentiam Platform token serves different functions. It acts as the platform’s backbone and as the medium of exchange for all platform transactions.
PTM, ERC-20, is a decentralized cryptocurrency on the Ethereum blockchain. It is the second-largest cryptocurrency by trading volume.
PTM token is the currency needed to transact on the various distribution modules associated with the Potentiam network. Token owners have the option of staking their tokens in the Potentiam wallet to receive special rights and rewards within the network.
With PTM, there is an audit trail present to trace its movement. It improves security and prevents fraud in exchange-related businesses, but it can also help verify the authenticity of the traded music assets.
Benefits of Staking On Potentiam
- NO HARDWARE IS REQUIRED
Unlike proof-of-work, there is no need for specific equipment or hardware for crypto staking. Proof-of-stake works with no equipment requirements. The only requirement is to hold the coin for an interval by the holders. - PASSIVE INCOME
Stakeholders earn incentives by holding and controlling their digital wealth. Passive income for the beneficiary is the reward of staking. - SCALABILITY
In the Blockchain world, scalability is an often mentioned concept. It refers to a computational process's potential to be used or generated in a variety of ways. Proof-of-stake protocols as adopted by Potentiam offer an efficient pathway to scalability compared to proof-of-work. - ECO-FRIENDLIER
As proof-of-stake blockchains consume less energy, they are more environmentally friendly. Thus, they have a lower carbon footprint and have little or no environmental effects.
Security and privacy are issues in the modern world today. Potentiam provides a swift and stable portal backed by the Potentiam contract, making it superior to others. Potentiam contract offers a highly secure environment for its users.
HOW DOES POTENTIAM REWARD?
By staying up-to-date with their favorite musicians and discovering new artists, PTM token-holders also receive exclusive rewards, special rights, and privileges for participating on the platform. Members can earn extra rewards by performing different roles on the platform like bounty marketing, sending referrals, and being a moderator.
Potentiam music network gives back ~50% of revenue generated on the platform. Exclusive rewards and monetary incentives for fans - plus the chance to play their part in the music industry.