Spotify announced Wednesday that it has acquired Mediachain Labs, a Brooklyn-based startup, to help better dimension hymns on the music streaming platform to artists and rights holders.
Mediachain Labs operates on the blockchain, a engineering that offers a distributed database most often associated with Bitcoin. The hope is that this technology can be leveraged as information sources for tracking music rights via a decentralized system.
Mediachain will “help further Spotifys journey towards a more fair, transparent and rewarding music industry for inventors and rights proprietors, ” Spotify wrote in a blog post.
Attribution is an abhorrent flaw in Spotify’s system and a repair is much-needed especially as rival in the music streaming industry develops, with Apple Music, Amazon, and Google Play. Last year, Spotify paid more than $20 million to music publishers and a$ 5 million penalty to determine a licensing dispute withthe National Music Publishers Association.
As TechCrunch noted, Mediachain has expertise in the music industry. Arkadiy Kukarkin, Mediachain’s chief engineering policeman and first engineering hire, used to work at Hype Machine, a music curation aggregator beloved by Snap CEO Evan Spiegel. Mediachain cofounder Jesse Walden previouslyran an artist management company.
“I was entrenched in a host of problems to do with music data, which can be summarized by saying that all the information about who constructed or owns music is fractured across zillions of proprietary databases, preventing artists from being paid and making life difficult for services wanting to pay them, ” Walden told Forbes last year.
The words of the bargain were not disclosed. Mediachain’s team will join Spotify’s agencies in New York.