How Musicoin(MC) Works - Musicoin/Introduction GitHub Wiki

Musicoin system is designed to support music creation, publication and consumption as a whole cycle. The system uses a special algorithm to generate a currency called Musicoin(MC), also there’s another algorithm to support automatic contracts based on which enables creators and consumers to exchange value. With the special currency, a solid contract system, a large scale of transactions around music becomes possible.

The Currency

Musicoin the currency(MC) is not issued by anyone but a network of computers. It’s a proved concept by the success of Bitcoin. By running a complex computer algorithm, all the computer in the network will collaborate to generate a currency which can’t be faked, can’t be “Double Spending”, can’t by manipulated by human. So even there’s no central bank, Musicoin can be seen as secure and trustworthy. (illustration here)

Smart Contracts

With the trust-able currency, smart contact can be possible to run upon automatically. We designed a series of contract templates that can be chosen by creators. The first and maybe most important one is called Pay-Per-Play(PPP) contract. PPP automate the unit consumption of music,one there’s a playback, there’s a transaction to pay through the contract to creator. Keep in mind, every transaction will be put onto the network, and no one can tamper it again. (illustration here) Some other smart contracts will be added later to the system, to enable creators control their license with more flexibility.

Musiconomy

We hope the mechanism above can set a foundation to enable musicians to release their works to the system, listener can consume them without barriers, and the payment will instantly go back to musicians. This process will be executed again and again, eventually become a large scale phenomenon without other intervention. So the more releases, the more listeners; the more listening, the more income to musicians; the more income, the more creations. It’s just a positive feedback loop described by Sharism philosophy. Although Musicoin can be used globally to consume music from everywhere, Musicoin system is not a closed system. The currency, the functions can all be reused externally. So like Bitcoin, it is not only exchangeable with other currencies on the ground, but also a reference to the values of other goods in the future(imagine some day you go to a cafe, a cup of Latte may have two prices tags: USD 4.00, or MC 280).

Future potential

Musicoin team projects even long future for the system. Since music is an indispensable life in human society, the data on Musicoin system will be very useful to help everyone to choose the best music based on their listening history. Musicoin system is the only open system to record your lifelong listening history and return to you to control its usages. So very possibly, a future device with artificial intelligence can automatically help you choose the right playlist in right time and automatically pay back to musicians.