Algorand (ALGO) is a high-speed blockchain that recently revealed that its technology will be used to power a new, upcoming platform called Opulous. The platform will use Algorand to connect music artists with investors, thus bringing music to DeFi.
Opulous brings a new way for artists to get funding
From what is known, Opulus is a P2P music service and payment protocol, which is going to try and help artists access their capital without intermediaries. Essentially, it is a crypto project aimed at the music industry, which wishes to push decentralized finance among artists and music stars.
Opulus was created by an award-winning global music distribution and record label services form known as Ditto.
The company’s CEO, Lee Parsons, noted that musicians often get overlooked when it comes to traditional banking loans. If not that, then they get extremely unfavorable terms, that are simply not worth their time.
Thanks to the emerging DeFi sector, Opulous can change that, and expose music artists to decentralized finance.
What makes Opulous stand out?
The story of DeFi is well-known these days, and the benefits of using decentralized banking are clear. Artists would have access to minimal interest payments, low transaction fees, and other perks of using the crypto industry.
However, the thing about Opulous is that it stands out from other similar projects by being the first DeFi offering backed by music. In other words, Opulous uses music as an asset class, and it will work as a loan pool to which artists can contribute, but also borrow from.
Essentially, artists get to borrow money through loans guaranteed against their past streaming revenues. Their own copyrights will be used as collateral. At the same time, investors and artists can pay into the platform’s Music Copyright Pools, and earn 10% of their contributions on a yearly basis.
Algorand’s role will be to connect investors and artists who need a loan. This will attract new investors looking to earn passively, as well as artists who seek an easy way to get the funding they need, without having to deal with the banks.
The post A new platform will bring music to DeFi via Algorand (ALGO) appeared first on Invezz.
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