Spotify has acqui-hired Brooklyn-based Mediachain Labs, a group behind a blockchain open-source protocol to deliver a decentralized network for sharing data critical to getting creators paid. According to Spotify, the Mediachain team will aid their "journey towards a more fair, transparent and rewarding music industry for creators and rights owners."
Mediachain was launched in 2016 with backing from Andreessen Horowitz and Union Square Ventures. Terms of the acquisition were not disclosed.
When applied to the music industry, blockchain technology resembles a secure-but-shared ledger that connects data "blocks" containing data about every song and its rights holders. The ledger is ownerless, with multiple participants able to contribute.