Musicoin Mining – How Does it Works? (Easy To Understand)

Musicoin Mining – Musicoin positions itself as “the first intellectual cryptocurrency for music in the world.” On its platform, audio content creators will be able to license their product on the basis of smart contracts and automatically receive payment from listeners who will have free access to the global music catalog. How is this possible? Let’s figure it out.

History of Musicoin Creation

Musicoin was born in 2017. The beta version of the platform went online on February 11 last year.

Classical distribution of media and music recordings takes place through popular social networking sites such as Facebook, Twitter, Instagram, others, where fans can not only follow the creative development of their favorite artists, but also listen to their favorite music.

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However, the main disadvantage of such exchange services is the inequitable distribution of profits for content: most of the earnings remain with site owners and do not reach their author. Beginning artists are sometimes ready to give away a significant portion of their income or even to completely give up their licensing rights in the hope of gaining popularity and getting a chance to become recognizable.

The digitization of the music industry began in the 80s and after 10 years the process was at the peak of its development. The transition to digital music is largely considered a boon to listeners who today have access to an ever-expanding catalog of music through exchange services. But the same process brings complexity to musicians: even though the industry still has a multi-million dollar share of revenues, the share intended for the creators of audio content is very small to earn a living.

However, the same technological progress that has been detrimental to the music industry over the past 20 years also provides an opportunity to redefine the relationship between musicians and listeners. Until recently, there were only two models for the distribution of a music product:

  • torrent model;
  • subscription model.
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The first model is widely used peer-to-peer network (P2P) file sharing, it marked the beginning of the end of the traditional approach to the distribution and consumption of music. In it, digital content is randomly distributed on the network and downloaded by other users without the permission of the musician, so the creator of the music does not receive any monetary compensation. This model is doomed to failure, not only because it has a legal violation, but also because it is not sustainable, because the benefits of musicians are completely ignored.

History of Musicoin Creation

In the second model, the services provide streaming content based on a centralized catalog and charge users a stable monthly fee, but most of the income (sometimes up to 80%) accumulates in the accounts of intermediaries.

Before the digital age, musicians needed these intermediaries who helped them organize, plan, record, create and distribute music. This has given rise to the formation of many agencies in the music industry: distributors, retailers, studios, PR and marketing agencies. But today, many of these services are not needed.

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Thanks to cryptocurrency, it became possible to make almost instant payments with minimal transaction costs, and smart contracts allow musicians to maintain autonomous control over licenses without relying on a third party.

The idea and objectives of the project

Official site – https://musicoin.org/

Musicoin is a cryptocurrency designed to compensate and consume music. Whenever a listener plays a melody on the Musicoin website, the creator of the song gets a reward in real time. The decentralized and transparent digital platform directly connects musicians and listeners, and thus lays the foundation for a new era of music that is sustainable, boundless and fair for all interested parties.

But how is it possible to organize free distribution of content and at the same time give musicians the opportunity to earn? The payment system is built as follows:

Musicians are paid one Musicoin per play. Musicoins coins come from a stock filled with miners. When computers process network transactions, they generate new Musicoins, and this process is called “mining”. Part of the extracted cryptocurrency goes to replenish the fund, and part is paid to miners as a reward.

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It turns out that the miners Musicoin pay content creators, and the audience listens to all the music for free. Such a reward system is called Universal Basic Income (Universal Basic Income).

Musicoin is far from being a simple cryptocurrency, a whole ecosystem is built on its platform that allows musicians to share their products through the creation of intelligent contracts and earn money from each listening composition.

Musicoin is built on two innovative technologies: Blockchain and smart-contract. It is this organization that provides the automatic execution of the contract along with the payment transaction.

Musicoin Concept

Content creators can either independently determine the value of their product, or use the Pay Per Play model, in which payment is automatically transferred for each stream of music. They can customize their distribution of payments, for example:

  • 50% to the actor;
  • 25% to the guitar player;
  • 25% to the drummer.

The platform will offer sample script options.

Most favorite musicians can write bonuses to support their work. And besides this, all users can go to a social platform where they can leave comments, feedback, and just share their thoughts.

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Technical details

As part of the UBI model, all streaming on the platform is free due to the fact that payment of musicians is 15.9% of all mined coins. Today, mining of coins uses a consensus mechanism of work (Proof of work), but in the future the system will switch to proof of sharing (Proof of Sharing).

The Musicoin system is a fork of Ethereum, which has its own blockchain. It is specially modified to use music. The platform is able to fulfill intellectual contracts written in Turing-full language, which can be the basis for future music applications.

The cryptographic currency of Musicoin uses the same data encryption algorithm as Ethereum, namely Equihash. And it means to extract coins can be on graphics processors (Graphics Processing Units), whose memory is not less than 3 GB.

The principle of mining Musicoin is the same as that of Ether, but the new cryptocurrency has its advantages:

  • the network is still new and does not have high complexity yet;
  • the project did not have an ICO, so there were no zero-value coins;
  • miner reward is 246.2 MUSIC;
  • time to create a new block – 13 seconds;
  • network hashrate – 356.28 Gh / s;
  • network complexity – 4.62 Th.
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As in the Ethereum network, the total amount of Musicoin coins generated per day is 1.5 million. This scheme is designed to ensure that the process of creating a global ecosystem is transparent and fair for all.

How to create a wallet

If you want to join the music community, replenish your investment portfolio with new digital assets or start mining, you need to register your personal wallet. The easiest way to create an account on the exchange that supports this cryptocurrency.

Stock Exchange

How to create a wallet

To register a wallet on a cryptocurrency exchange, for example, Bittrex, you will need to go to the official website of the exchanger https://bittrex.com and fill in only three fields:

  • the address of your mailbox;
  • come up with a strong password;
  • repeat password.

After that, agree to the terms of service and confirm the registration by activating the link in the letter. An online wallet can be used directly for storage or trading, or you can copy the address to the clipboard and specify it when setting up your extraction software.

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PC Wallet

Musicoin E-Wallet

Another option is to install the wallet locally on your computer. To do this, click on the link and download the desired archive for your operating system (Windows, Mac or Linux). With this method of storage, it is very important to create a backup copy of the wallet, so that if necessary, be able to restore access to all its assets. Since Musicoin is a Ethereum marker, you can use the already-made account Eth-wallet MyEtherWallet.

Web storage

Web storage Musicoin

It is also possible to create a web wallet. To do this, follow the link https://musicoin.org/welcome and create your personal account:

  • choose the type of account (musician or listener);
  • determine the method of logging in (log in with google, twitter or facebook);
  • and confirm your account using email.

How to Mine Musicoin? – Musicoin Mining 

Like any blockchain, the Musicoin network block data must be encrypted. This requires the computational power of miners who will carry out checks on what can be considered as a “transaction” when a song is played.

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For the extraction of coins, you can use graphics chips from the manufacturer AMD or NVIDIA, the main condition – at least 3 Gb of RAM. Theoretically, you can customize and solo-mining, but more revenue will bring collective mining in the pools.

By the way, not only classical miners can extract Musikoin, but also songwriters, and they also have two options:

  • In solo mining, the creators of music set up a digital contract only for themselves and individually receive coins for each playback of a musical composition.
  • In collective mining, the contract works on the principle of shares, in which the remuneration will be divided among all participants: the author, musician, performer, producer, etc.

Claymore Miner Quick Start Guide

For mining Musicoin is better to use the software Claymore’s-Dual-GPU-Miner. It is accepted by all popular pools, developers constantly release updates for it, and it is completely easy to configure it. So:

Step 1. Download the latest version of the program:

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Step 2. Since the miner does not have a visual interface, to launch it, create a .bat file and write the following information in it:

setx GPU_FORCE_64BIT_PTR 0
setx GPU_MAX_HEAP_SIZE 100
setx GPU_USE_SYNC_OBJECTS 1
setx GPU_MAX_ALLOC_PERCENT 100
setx GPU_SINGLE_ALLOC_PERCENT 100
EthDcrMiner64.exe -epool music.2miners.ru:4040 -allcoins etc -eworker ИМЯ_ФЕРМЫ -ewal АДРЕС_КОШЕЛЬКА -epsw x

All Russian text must be replaced with its own parameters.

Step 3. Run the miner. If the bat-file is created correctly, then after double-clicking on it, the program will launch the command line and you will see a similar window:

Run the miner - Musicoin

How to calculate profitability

Before you start the computational process, you should find out how beneficial mining will be on your equipment. There are special calculator sites for this, for example, WhatToMine.

How to calculate profitability - Musicoin

At the top of the page you need to select the type of equipment (in our case, the GPU). Then specify the technical data. This can be done in two ways:

  • or enter the number of graphics cards, then the program will automatically fill in the data on hashrate and power consumption;
  • or, if your card is not listed, enter the data yourself.
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In the lower left corner, you will need to specify the cost of electricity in your area and run the calculation. From the bottom of the page in front of you there will be a table with all possible cryptocurrencies for mining of the selected hashing algorithm:

Musicoin Market capitalization

Course Of Musicoin

Cryptocurrency MUSIC takes 611 position in the Coinmarketcap ranking with the following indicators:

  • market capitalization – $ 3,288,163 USD;
  • volume (for 24 hours) – $ 26,251 USD;
  • total in circulation – 776 117 568 coins.

The course of the coin on August 29, 2018 was as follows: – For live updates Musicoin Data

  • against the dollar – $ 0.004237 USD;
  • a Bitcoin – 0.00000060  The BTC;
  • to the ruble – 0.29 RUB.

Where can one buy

Today cryptomonet is sold on two exchanges:

  • Bittrex – 86.23%;
  • Cryptopia – 13.77%.

Altcoin can only be bought for BTC

Roadmap – Musicoin Mining 

The project has its own roadmap, in which many of their stages have been successfully implemented. The main strategic change that all users are waiting for is the transition to the new Proof of Sharing algorithm, in which awards will be awarded for the active distribution of music content (not for listening and not for keeping coins on the balance sheet).

Roadmap - Musicoin Mining 

Conclusion

Musicoin is a decentralized music publishing and consumption system that combines advanced cryptocurrency with a peer-to-peer file-sharing network. A global music catalog will be created that allows musicians to create and publish their licenses, as well as receive real cash payments from each audition.

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The project is designed for cyclical processes: supporting the creation, publication and consumption of music. The system uses a cryptographic algorithm to generate internal coins MUSIC and another algorithm to support automated contracts. A unique, reliable currency and an automated digital contracting system is a real opportunity for major transactions in the music world.