Opulous: A DeFi Solution For Musicians Built On Algorand
Ditto Music, a Liverpool-based global music distribution company, has recently announced the Opulous app, a peer-to-peer DeFi solution built for musicians and artists on the Algorand blockchain protocol. Hundreds of artists will receive access to capital outside of traditional finance, such as banks, with the help of this pioneering platform.
Ditto Music: A Short Overview
Being one of the world’s most significant music distribution and record label services platforms, Ditto Music supports over 250,000 independent artists and labels worldwide. It distributes music to over 160 music stores starting from Spotify and iTunes to Deezer and Shazam. Along with music distribution, their primary services include chart eligibility, royalty collection, and online promotion.
The Algorand Foundation: A Short Overview
A non-profit organization that is created with a vision to focus on building a borderless, frictionless economy on public, decentralized blockchain technology. Silvio Micali and a team of brilliant scientists initially built the Algorand blockchain protocol. The Algorand Foundation is built by leveraging the blockchain protocol and the open-source software to fulfill blockchain technology’s future promises. By utilizing the Proof-of-Stake consensus algorithm, this leading platform has envisioned an inclusive ecosystem in a sustainable and eco-friendly manner.
Opulous: Bringing Music Assets Into DeFi
Opulous is the first-ever decentralized finance(DeFi) scheme for musicians that is backed by music as an asset class. It acts as a loan pool that allows artists to borrow from, as well as contribute to. Artists can easily access guaranteed low-interest loans against their past streaming revenues with the copyright they own as their collaterals. Artists, as well as other investors, can cut out the unfair traditional banking system by paying into Opulous’s Music Copyright Pools. Meanwhile, on every contribution made, they earn 10% per annum each.
The inspiration behind such an open-source platform was none other than the 250,000 plus Ditto users who either were not eligible for financial support through traditional means of banking or who hold their streaming revenues in their accounts. Opulous emerged as a bold new venture for investors and also provided an option for financially supporting artists who fervently want to fund the future of their careers. The platform is not just for Ditto users but is open to anyone without restraints.
Significant Features of Opulous
Opulous leverages Algorand’s blockchain technology benefits and uses it to connect investors with artists who require a loan. Opulous allows investors to seamlessly share high earnings and diversify their portfolios with assets specifically available to music industry insiders. Monthly premiums and interest repayments are automated, and profits are directed straight to investors using Smart Contracts. To provide complete backing, it also onboards staking from third-parties.
CEO of Ditto, Lee Parsons, commented on the launch of Opulous that, “Musicians are often largely overlooked when it comes to traditional banking loans, or the terms are so unfavorable it isn’t worth their time. Using De-Fi, Opulous cuts out traditional banking, providing musicians a platform with minimal interest payments, while giving investors the chance to stake a claim in one of the most exciting and fastest-growing financial industries in the world.”
Opulous: The Present And The Future
Opulous is built on Algorand’s public blockchain platform, making it accessible for everyone and securing transactions. It is currently developed by Ditto and Randlabs. A blockchain development lab specialized in Algorand Technology. In its seed round of funding, Opulous has already raised $1.5 million with the help of Borderless Capital, TrystVerse, Somesing, BASIC, and Kosmos Capital. Its first and foremost staking partner is the open-source blockchain platform for digital assets, Elastos. A Minimal Viable Product(MVP) is in the pipeline and can be expected most probably by the end of March.
CEO and Managing Partner of Borderless Capital, David Garcia, stated that: “Using blockchain technology to democratize the access to the music’s capital markets is really disruptive and unique. 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, the Opulous platform will perform as one of the first real-world DeFi applications.”
The DeFi platform, Opulous, built on Algorand’s blockchain technology, aims to connect investors with artists who need funding. It will continue to function as a loan pool for musicians with upcoming features in the future. The industry is all set to double its revenue over the next decade as this drives fresh and quality investments. It is also a big step towards the development of decentralized blockchain technology.