Blockchain-based royalty payments refer to the use of blockchain technology to facilitate and automate the distribution of royalties for various forms of intellectual property, such as music, films, and creative works. In traditional payment systems, collecting and distributing royalties can be complex and time-consuming, often involving multiple intermediaries, which can lead to delays and increased costs.
Using blockchain, royalty payments are recorded on a decentralized ledger, allowing for real-time tracking and transparency. This technology ensures that all parties involved have access to accurate data regarding transactions, thereby reducing the chances of disputes. Smart contracts can automate payment processes, ensuring that royalties are distributed automatically and fairly based on pre-defined agreements when a work is used or sold.
This system is particularly relevant in the finance and payment sectors as it promotes efficiency and trust among stakeholders. As a result, artists and creators can receive timely payments, and rights holders can better manage their assets, leading to a more streamlined creative economy.
