How to develop a crypto-powered music streaming service like Audius

Blockchain and smart contracts are transforming the music sector with open, decentralized, and equitable streaming platforms. Audius is among the platforms that leverage blockchain technology to give power back to artists through direct interaction with fans, equitable pay, and complete ownership of their content. A crypto-powered music streaming service like Audius is paving the way for the future of the music industry.

For entrepreneurs who want to create a crypto-based streaming service, it is a great way for them to enter the world of online music. Using blockchain, smart contracts, and token-based monetization, companies are able to create a more open and fair platform for artists and listeners.

In this blog, we will talk step by step through the development process of creating a blockchain-based music streaming platform, from choosing the appropriate technology to crafting an effortless user interface. We will also take you through essential features that will boost your platform’s functionality and set the stage for a successful market launch.

Key Market Takeaways of Blockchain Music Market

According to the Market.us report, The Global Blockchain Music Market is expected to get a hike of $1,039.6 Million by 2033 from $72.02 million in 2023, maintaining a CAGR of 30.6%. This growth is an indication that entrepreneurs and businessmen should dive into this market.

For example, Royal raised $55 million in a Series A funding round led by Andreessen Horowitz, with participation from artists like Nas and The Chainsmokers. The platform enables fans to invest in music rights and earn royalties alongside artists.

Similarly, according to Global Grow Insights, Audius’s revenue will increase from $25 million, maintaining a CAGR of 35.7%. Additionally, another blockchain music streaming platform, Unchained Music, will grow its revenue from $12 million, achieving a CAGR of 30.5%.

These platforms exemplify blockchain’s impact on music streaming, with Market.us highlighting rapid growth and adoption. With rising investments and innovative monetization, this is the ideal time to invest in the industry.  

Overview of Crypto-powered Music Streaming Service Audius

Audius is a decentralized, crypto-powered, blockchain-based music streaming platform designed to empower artists by providing direct distribution, monetization, and streaming of audio content like songs, podcasts, images, artworks, etc., without any intermediaries. This platform, launched in 2019, seeks to grant musicians greater access to their work and revenue streams while facilitating direct engagement with their audience.

Key Features of Audius

Audius platform is crypto-powered, integrating with blockchain technology to provide a decentralized artistic-centric music streaming experience with enhanced transparency, security, and monetization opportunities. 

1. Decentralized Infrastructure

Audius works on a decentralized network of nodes responsible for storing, indexing, and delivering music content. This model enhances security, transparency, and resistance to censorship to revoke control over the platform by any single entity.

2. AUDIO Token Utility

The platform’s native cryptocurrency, known as AUDIO, serves multiple functions:

• Staking: Users stake AUDIO tokens to operate network nodes, contributing to system security and functionality.
• Governance: Token holders participate in protocol governance, influencing decisions related to platform upgrades and policies.
• Incentives: Artists can earn AUDIO tokens through trending placements and fan engagement, ensuring fairer revenue distribution.

3. Content and Discovery Nodes

Audius employs two distinct types of nodes:

• Content Nodes: These store and manage user-generated music content.
• Discovery Nodes: These index and retrieve content, facilitating efficient search and playback.

4. Interoperability and Artist Tokens

The platform integrates artist-issued tokens across multiple blockchain networks to enhance the flexibility in monetization and engagement strategies.

Best Time To Invest In Crypto-powered Music Streaming Platform

Developing a crypto-based music streaming platform like Audius meets the growing demand for decentralized services, allowing artists full control over their work and earnings. Blockchain replaces intermediaries, ensuring transparent revenue sharing. A new platform can effectively address the rising need for decentralized technology in music streaming.

For instance, Tune.FM raised $50 million from Global Emerging Markets in September 2024, totalling $80 million in funding. Additionally, it secured $20 million from LDA Capital in January 2024 to enhance its blockchain ecosystem. The platform utilizes tokenized rewards and decentralized ownership to foster an artist-friendly streaming culture.

Similarly, Tamago, another new platform, obtained $1 million in Seed Round investment on May 26, 2022, from investors like Daedalus Angels, Big Brain Holdings, Byzantine Marine, and Human Guild. Backed by NEAR’s Human Guild, Tamago is committed to enabling independent artists through decentralized streaming.

These platforms show the viability of blockchain music. They use subscription models, premium content, and tokenized royalties to generate revenue and allow artists to monetize better consistently. With the rising adoption of Web3, decentralized music streaming platforms will be vital for business, making now the right time to invest in their development.

Business & Revenue Model of Audius

Audius is a decentralized, community-owned music streaming and sharing platform built on the Solana blockchain. It enables artists to distribute their music directly to fans, bypassing traditional intermediaries and offering fairer compensation through the $AUDIO token.

Revenue Streams

Audius operates as a decentralized protocol, primarily focusing on enabling direct artist-to-fan connections. The core protocol itself does not generate direct revenue in the traditional sense. Instead, its value proposition is built on:

• $AUDIO Token Utility: The $AUDIO token serves as the platform’s native currency, used for staking, governance, and artist rewards. Its value is tied to the platform’s overall growth and adoption.
• Decentralized Infrastructure: Audius relies on a network of node operators who stake $AUDIO to run the platform’s infrastructure. While not direct revenue, this fosters a robust and decentralized ecosystem.

Funding Rounds

Audius has successfully secured funding to support its development and growth:

• September 2021: Raised $5 million in a Series A funding round, including from Katy Perry, The Chainsmokers, and other artists.
• Prior Rounds: Total funding of $16.1 million across five funding rounds.
• Key Investors: General Catalyst, Lightspeed Venture Partners, Pantera Capital, Coinbase Ventures, and Multicoin Capital.

Financial Performance

While direct revenue figures for the Audius protocol are not as straightforward as those of traditional companies, on-chain activity and token metrics provide insights into its adoption and performance:

• $AUDIO Token Market Capitalization: As a key indicator of platform value, the $AUDIO token’s market capitalization fluctuates based on market conditions and platform adoption.
• User Growth: Audius has reported over five million monthly active users, demonstrating significant adoption.
• Content Uploads: The platform hosts a vast library of music, indicating strong artist participation.
• Global Growth Insights Report: Audius’s revenue is at $25 million in 2023, with a projected CAGR of 35.7%.
• Token Staking: A significant amount of $AUDIO is staked by node operators, securing the network and indicating long-term confidence in the platform.

Development Steps for a Crypto-Powered Music Streaming Platform

Creating a decentralized music streaming platform requires careful planning and execution using blockchain, decentralized storage, and smart contracts. Here’s an overview of the development process and technology stacks.

1. Define the Platform’s Vision and Consultation

Before development, it is essential to have a clear vision, prioritize decentralization, empower artists, and promote fair revenue sharing. Key features like quality streaming, community playlisting, artist pages, and tokenized rewards constitute the fundamentals, while differentiators like NFT-linked ownership and governance decentralization enable competitiveness. Consult with reputable companies such as IdeaUsher for expert advice, market analysis, and blockchain integration frameworks to develop an impenetrable, scalable, and competitive blockchain music streaming platform.

2. Select Blockchain Infrastructure

The choice of blockchain infrastructure significantly impacts platform scalability, transaction efficiency, and security. A high-performance blockchain is necessary to support real-time music streaming without delays or excessive transaction fees.

• Ethereum (Solidity): Well-established with strong, smart contract functionality but may face scalability issues.
• Solana (Rust): High throughput and low fees, making it ideal for streaming services. Solana can handle fast transactions while maintaining an Ethereum-based governance layer.
• Binance Smart Chain (BSC): Lower fees than Ethereum but slightly more centralized.

3. Develop a Decentralized Architecture

A decentralized architecture ensures content distribution without relying on centralized servers, reducing censorship risks and providing greater reliability. This structure consists of the following components:

• Content Nodes: These nodes store and distribute music files while ensuring seamless playback. You can consider Node.js with Express for its content nodes, PostgreSQL for database management, and Redis for caching.
• Discovery Nodes: These nodes index content and facilitate efficient search and discovery for users.
• Decentralized Storage: Platforms can use the InterPlanetary File System (IPFS) to store and distribute music files in a decentralized manner. This approach ensures that files remain accessible without relying on a single point of failure.

4. Design the Token Economy and Monetization Model

To create an economically sustainable platform, a well-defined token model is essential. The native cryptocurrency token serves multiple purposes, including governance, staking, artist compensation, and premium user features.

• Utility of Native Token: The token can be used to tip artists, unlock exclusive content, and pay for premium subscriptions.
• Revenue Streams: The platform can generate revenue through NFT-based song sales, staking rewards, and premium artist tools.
• Incentive Structures: Implementing rewards for users and artists based on engagement can help increase platform adoption.

5. Implement Smart Contracts

Smart contracts automate transactions and remove intermediaries, ensuring transparent and instant royalty distribution. These contracts handle several key functions:

• Royalty Distribution: Artists receive payments automatically based on streaming metrics. This can be implemented using Ethereum’s Solidity smart contracts or Solana’s Rust-based programs to ensure accurate and timely payouts.
• Licensing and Content Ownership: By utilizing ERC-721 or ERC-1155 NFT standards, artists can tokenize their music rights, giving them more control over distribution and ownership.
• Stake-Based Governance: Decentralized governance allows token holders to vote on platform changes, ensuring that decisions align with community interests.

6. Develop the UI/UX

The user interface and overall experience play a crucial role in adoption and retention. A well-designed UI should be intuitive, responsive, and accessible across multiple devices.

• Frontend Development: Use React.js for web applications and React Native for mobile apps to ensure a seamless user experience.
• State Management: Implement Redux for efficient application state handling, improving performance and scalability.
• Cross-Platform Compatibility: The platform should function smoothly on desktops, tablets, and mobile devices to maximize user reach.

7. Governance and Community 

Decentralized governance ensures that the platform evolves based on community feedback rather than corporate control. Implementing a Decentralized Autonomous Organization (DAO) allows users and stakeholders to participate in decision-making.

• Governance through Token Staking: Users can stake tokens to vote on platform upgrades, fee structures, and content moderation policies.
• Community Incentives: Hosting competitions, token airdrops, and artist collaborations can strengthen community engagement.
• Partnerships with Artists and Labels: Encouraging major artists to join the platform can drive adoption and credibility.

8. Compliance and Security

Regulatory compliance and security measures are critical to maintaining user trust and preventing legal complications.

• Regulatory Considerations: Understand and comply with digital content distribution laws and cryptocurrency regulations in different jurisdictions.
• Security Protocols: Implement robust security features such as end-to-end encryption, multi-signature wallets, and smart contract audits to protect user assets and data.
• Fraud Prevention: Develop measures to prevent unauthorized content uploads and plagiarism using blockchain-based digital signatures.

9. Deployment and Continuous Improvement

Once the platform is developed, a structured launch strategy is necessary to maximize adoption and ensure continuous improvements based on user feedback.

• Beta Testing: A soft launch allows early adopters to test the platform and provide feedback on functionality, bugs, and user experience.
• Official Release: A full-scale launch with marketing campaigns and artist partnerships can drive adoption.
• Regular Updates: Continuous improvements based on analytics and community feedback will keep the platform competitive and up-to-date with evolving blockchain trends.

Cost of Developing a Blockchain Music Streaming Platform

The cost of developing a crypto-powered music streaming platform varies based on features, blockchain infrastructure, and development complexity. Below is a cost breakdown for each development step.

Development Step	Task	Description	Estimated Cost
Define Vision and Consultation	Market research & planning	Identify target audience, features, and goals	$1,000 – $5,000
Select Blockchain Infrastructure	Blockchain selection & setup	Choose between Ethereum, Solana, or BSC	$2,000 – $10,000
Develop Decentralized Architecture	Content & discovery nodes	Implement IPFS, Node.js, PostgreSQL for storage & indexing	$5,000 – $20,000
Design Token Economy & Monetization	Tokenomics & smart contract setup	Define rewards, governance, and NFT-based ownership	$3,000 – $15,000
Implement Smart Contracts	Develop and audit contracts	Automate royalty payments, licensing, staking	$5,000 – $20,000
Develop UI/UX	Frontend & mobile app development	Build web & mobile UI with React.js, React Native	$7,000 – $25,000
Governance & Community	DAO setup & token staking	Implement decentralized governance with staking	$2,000 – $10,000
Compliance & Security	Security audits & legal compliance	Conduct smart contract audits, regulatory checks	$5,000 – $15,000
Deployment & Improvement	Beta testing & launch	Optimize performance and fix issues post-launch	$3,000 – $10,000

This is the rough estimation cost from $10,000 to $100,000. This cost can go high depending on the complexity of the technologies, features, and experts involved in the development.

Enhancing Features for a Blockchain Music Streaming Platform

These features can enhance your blockchain music streaming platform, which will help your platform to differentiate from the other platforms.

1. Decentralized Rights Management

Music industry rights tracking and ownership are complicated. Blockchain rights management combines secure storage of copyright, licensing terms, and contributor information. Smart contracts provide instant permissions and royalty payment, reducing conflict and facilitating easier licensing for streaming services, advertisers, and third-party distributors.

2. Automated Royalty Payments

Intermediary music sites also include intermediaries and slow royalty payments. The artists and stakeholders are equipped with an instant, transparent payment via a smart contract on blockchain platforms. The blockchain wallets deliver real-time revenue without intermediary costs, with the artists being quite paid through negotiated royalty splits beforehand to songwriters, producers, and guest artists.

3. NFT-Based Fan Engagement

NFTs also grant fans the right to listen to unreleased music, attend live concerts, and enjoy special content in real time. Creators make and sell NFTs as a symbol of the limited-release song, VIP pass, or reward item. Early access and VIP clubs build new revenues and greater artist-fan bonds.

4. Fractional Song Ownership

Artists can tokenize ownership of songs in a manner that enables listeners and investors to buy shares and stake a claim on streaming royalties. The model offers alternative sources of funding without record labels while positively involving fans to market music. Funds are allocated proportionally based on percentages of ownership, opening up economic opportunities for listeners as well as artists.

5. Community-Driven Governance

A Decentralized Autonomous Organization (DAO) allows for tokenholder voting on matters affecting the platform. Users, artists, and developers vote on platform enhancements, fee splits, and content policy. A tiered voting system empowers active users and is an open and community-driven platform.

Conclusion

Developing a crypto-based music streaming platform like Audius is a major innovation. Utilizing blockchain and smart contracts ensures artists are paid fairly, eliminating middlemen and promoting transparency for fans and artists.

This article outlines key steps to create a music streaming website using blockchain. It covers understanding the technology and essential features for user interface and profitability. There’s significant scope for customization with advancements in digital music.

The future of music streaming is going decentralized, and it is an excellent time to be along for the ride. With blockchain, you can build a platform that meets business needs today and looks ahead to how consumers will consume digital music in the future.

Build a Crypto-powered Music Streaming Platform Like Audius with IdeaUsher!

With over 500,000 hours of extensive experience in implementing blockchain, IdeaUsher is outstanding in crafting decentralized music streaming sites that not only empower artists but also optimize user experience.

Our groundbreaking solutions natively combine smart contracts, token monetization, NFT support, and decentralized storage, all tailored to provide transparency, security, and scalability. If you need to develop an artist-focused platform or test out new revenue streams, we offer end-to-end development services based on your idea.

Partner with IdeaUsher to develop a blockchain-driven, next-gen music streaming business that shakes up the industry and pushes digital music technology forward.

FAQs

Q.1. How does blockchain technology enhance music streaming platforms?

Blockchain enhances music streaming by ensuring transparency, security, and decentralisation. Smart contracts automate royalty payments, allowing artists to receive earnings instantly without intermediaries. It also enables accurate tracking of plays, ensuring fair compensation while preventing unauthorised content distribution.

Q.2. What are the key steps to developing a crypto-powered music streaming service?

Developing a blockchain-based music streaming platform involves defining the business model, selecting a blockchain for scalability and security, and integrating smart contracts for automated payments. Decentralised storage solutions ensure secure content distribution, while a user-friendly interface enhances accessibility. Implementing tokenomics allows monetisation through subscriptions, tipping, and NFT sales, ensuring financial sustainability.

Q.3. How do artists benefit financially from blockchain-based music platforms like Audius?

Artists earn directly through tokenised rewards, tipping, and exclusive content sales without intermediaries. Blockchain ensures transparent revenue distribution, allowing artists to retain full ownership and control over their music. Additionally, smart contracts guarantee real-time, automated payments, eliminating delays and increasing financial autonomy.