Warner Music is investing $11.2 million in a new blockchain called Flow. The creators of CryptoKitties, Dapper Labs, is receiving $11.2 million to develop their new blockchain. This is Warner Music’s first investment in blockchain technology. It is specifically built to allow people to trade their digital assets like video game characters, music, movies, etc. This article describes how blockchain technology will be integrated into video games. Warner Music expects the same thing will happen with music.
Why Not Use Ethereum?
A perfect example that demonstrates the need for an alternative blockchain for digital assets is the congestion-crises on the Ethereum network in 2017. CryptoKitties is the most popular decentralized application (dApp) in the world. In 2017 it became so popular that it was crippling the Ethereum network and was significantly slowing down transaction times, and increasing gas fees which are used to pay for transactions. Ethereum has a lot of great use-cases but it wasn’t built to handle a large number of these digital assets.
Today, most of us stream music to our devices, which means we’re really just renting the music we listen to. Anyone who is 25 or older will probably remember having their own music collection that they owned. Dapper is working on returning back to the days where you actually own things. Proving you own a block of code, like a music file, is a tricky thing without a public blockchain. Once the file is on the chain, you can trace it back to its source and send it to other people. The NBA is jumping on the blockchain train too. They recently announced that they’re partnering with Dapper Labs to create their own digital NBA collectibles.
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