Shaurya Malwa · 15 hours ago · 2 min read
Algorand (ALGO) is now bringing music to the booming DeFi industry
The high-speed blockchain will be used to power an upcoming platform that connects investors with music artists.
Turning to Algorand
The Algorand blockchain will be utilized on Opulous, an upcoming music service and payments protocol, CryptoSlate learned in a release today.
Opulous is a peer-to-peer platform to help increase artists’ access to capital without the need for traditional institutions such as banks. Behind it is Ditto, award-winning global music distribution and record label services company that has processed more than $1 billion in royalties to date.
Earlier today, Ditto Announced Opulous will be built on @Algorand, bringing #DeFi to the music industry! Check out this in-depth guest blog post from @opulousapp's CEO, @ceoleeparsons as he discusses "Why #Opulous, why #Algorand and why now". Read at https://t.co/586c1ld34D pic.twitter.com/dUgsGzqzcz
— Algorand Foundation (@AlgoFoundation) February 1, 2021
“Musicians are often largely overlooked when it comes to traditional banking loans, or the terms are so unfavorable it isn’t worth their time,” said Ditto CEO Lee Parsons in a statement. He added, “Using DeFi, Opulous cuts out traditional banking, providing musicians a platform with minimal interest payments.”
The product claims to be the first-ever decentralized finance (DeFi) offering backed by music as an asset class. As such, Opulous will function as a loan pool wherein artists can borrow from and also contribute. As such, artists looking to borrow money will receive a loan guaranteed against their past streaming revenues with the copyrights they own held as collateral.
On the other hand, artists, and other investors, will also be able to pay into Opulous’ ‘Music Copyright Pools,’ earning 10% per annum on any contributions they make.
How its blockchain helps
Opulous will use the Algorand blockchain to connect investors with artists needing a loan, driving fresh investment into the industry. Algorand’s smart contracts will automate payments and direct profits straight to investors. It will onboard staking from other parties to enable the widest possible backing.
Using Algorand’s technology will allow Opulous to cut out traditional banking, providing musicians a platform with minimal interest payments, while giving investors the chance to stake a claim in one of the fastest-growing industries in the world.
David Garcia, CEO and Managing Partner of Borderless Capital, one of the investors in Opulous, said in the regard:
“We are excited to back the Opulous platform and for the opportunities, this is bringing to investors and music artists. By building on top of the Algorand blockchain, Opulous platform will perform as one of the first real-world DeFi applications.”
ALGO trades at $0.65 at press time and is ranked the 53rd biggest cryptocurrency in the world by way of its $819 million market cap.
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