This article originally appeared on Billboard.
Launching in May alongside a new publishing division, Ditto says Bluebox will lead to greater transparency and higher collection rates from digital services.
Global digital distributor and label services company Ditto Music is to launch a new blockchain solution that, it says, will generate higher earnings for artists and creators.
Called Bluebox, the suite will utilize blockchain technology to record data around songwriter, artist and producer rights and allow creators to instantly register copyright, publishing and mechanical splits at the point of creation – i.e. in the studio — using legally-binding smart contracts.
London-based Ditto says the app will enable multiple split royalty payments for the lifetime of a sound recording and allow it to accurately track plays of every piece of music registered on the system.
Having spent two years in development, Bluebox will launch in May and will be made freely available to Ditto’s 250,000 artist users worldwide, a list that includes Chance the Rapper, Ed Sheeran and Stormzy.
Last year, Ditto paid out more than $100 million to artists. It plans to launch a publishing division alongside the rollout of Bluebox, which CEO Lee Parsons says differs from the many other blockchain-based rights databases out there by being a purpose-built solution to the music industry’s well-documented data management issues.
“A lot of people in the blockchain space are trying to find a problem and then trying to come up with a solution based on that,” he tells Billboard. “The main difference with Bluebox is that we have a huge database of artists that we are going to be putting straight onto the blockchain. We’re not building a product and then trying to find a use for it.”
Ditto says the technology has already secured the backing of Australia’s MGM Distribution (Metropolitan Groove Merchants) and Sentric Music. Parsons hopes more music companies will follow when they see the benefits that blockchain technology brings.
“From this point on, every piece of music that goes through Ditto will be locked onto the blockchain and you will easily be able to see who owns the rights to that music,” he says. “I know producers who have hundreds of songs out there with their beats on them and the first they hear of it is when the song is released. I want that piece of music locked in from day one and then they can track everything that piece of music ever does.”