What is Audius (AUDIO) and how does it work? A comprehensive guide

What is Audius (AUDIO)?

Audius is a decentralized platform built on blockchain technology for streaming and sharing music. Launched in 2018, it operates with its native token AUDIO to support its ecosystem. Audius empowers music creators by allowing them to engage directly with fans while retaining control over their music.

Similar to traditional music streaming services like Spotify, Audius enables artists to earn revenue from their creations. In the conventional music industry, creators often receive a minimal share of profits once their music is streamed. Audius addresses this issue through blockchain technology and decentralized nodes.

On Audius, decentralization benefits artists by compensating them in AUDIO tokens each time their music is streamed. This system ensures that artists receive immediate compensation for their work, contrasting with the delays common in centralized streaming platforms.

How does Audius work?

Audius utilizes a blockchain protocol for decentralized music streaming, eliminating the need for a central authority. Unlike traditional services where centralized entities typically dominate profits in the multi-billion-dollar industry, Audius empowers music creators to retain more control and earn a fairer share for their work. Central to its operations is the native token AUDIO, which facilitates transactions on the platform and incentivizes network engagement.

Audius ensures that users, including fans and listeners, benefit from decentralized music streaming features. Users can utilize filters to discover favorite artists and newly released music, save tracks, and share playlists. The platform also offers curated music by mood. Users have the opportunity to earn AUDIO tokens as rewards for sharing their playlists.

Audius operates on a decentralized public ledger with open governance. This means node operators, music creators, and users can propose and participate in voting on protocol changes. Music creators can efficiently distribute audio files using the Audius Service Provider (AudSP) protocol, while Content Nodes ensure on-demand availability of music content.

Who founded Audius?

Audius was co-founded by Roneil Rumburg, the CEO and a Stanford University graduate in computer science, along with Forrest Browning, who serves as the CPO. The platform officially launched in September 2019 following a token sale.

The co-founders lead a team comprising engineers, entrepreneurs, blockchain specialists, and music enthusiasts. Audius also benefits from advisory support from figures like Justin Kan, co-founder of Twitch, Bing Gordon, co-founder of EA Games, and electronic music artists such as deadmau5. The project has garnered investment from prominent backers including Binance, Coinbase Ventures, and Pantera Capital.

What sets Audius apart from others?

Audius seeks to revolutionize how music creators are compensated, addressing the issue where only a fraction of revenue typically reaches artists in the traditional music industry, despite their crucial role in its existence.

In addition to facilitating instant payments for music creators through decentralized streaming services, Audius introduces a distinctive model in the sector. It rewards network participants, including users and node operators, for engaging in activities such as staking, sharing music, and maintaining the network.

What attributes contribute to Audius's value?

Audius derives its value from several key factors. The platform utilizes on-chain metrics and a continuous token issuance mechanism to efficiently distribute AUDIO tokens to active participants, thereby fostering user engagement and platform value. The intrinsic worth of Audius is underpinned by its technological capabilities, use case relevance, and overall impact in the decentralized music streaming sector.

The value of Audius is also reflected in its mainstream adoption and the broader popularity of decentralized music streaming services. AUDIO serves multiple functions within the network as the native token, primary payment method, reward currency, and stakeable asset. It is tradable on cryptocurrency exchanges, where market dynamics determine its price based on trading volumes and supply-demand dynamics.

How many Audius (AUDIO) coins are currently in circulation?

Audius initially issued 1 billion AUDIO tokens at inception, distributing 41% to founders, 36% to investors, and 18% for network growth. These tokens unlock gradually according to a vesting schedule. The AUDIO token launched with a 7% inflation rate to incentivize node operators, but its governance nature allows the community to decide on token emission distribution. Presently, there are 1,231,895,499 AUDIO tokens in circulation.

The market capitalization of Audius is determined by multiplying the number of AUDIO coins in circulation by the current price of AUDIO. This metric ranks the cryptocurrency and reflects its market share relative to other cryptocurrencies.

Users have the option to stake AUDIO coins to earn rewards and operate Content Nodes, which facilitate the immediate and on-demand streaming of audio content. These nodes are responsible for the operational functions of the network and can be operated by anyone within the Audius community, including music creators, fans, and general users.

AudSP, Audius' native extension, plays a crucial role in distributing data across the platform. It utilizes the InterPlanetary File System (IPFS), a decentralized peer-to-peer protocol designed for secure encryption, storage, and sharing of data. This ensures that all uploaded audio files remain accessible and decentralized, supporting the democratized operation of the network.

How does Audius ensure the security of its network?

Audius uses AudSP to make encrypted files universally accessible, employing proxy re-encryption when artists wish to grant selective access to their content. When a fan initiates streaming, a request is made on their behalf, which may include a payment or other specified conditions. A content node then uses the private key used for encryption and the fan's public wallet address to generate a fan-specific proxy re-encryption key, enabling access to the encrypted content only under conditions set by the artist while allowing on-demand streaming.

Additionally, Audius implements decentralized governance where network participants can stake AUDIO tokens to earn rewards and governance influence. Participants across the network, including artists and fans, can stake AUDIO and operate nodes to receive rewards from ongoing token issuance. AUDIO stakers can propose and vote on platform changes, ensuring democratic governance of the Audius network.

How to use Audius?

The Audius network enables music creators to share and stream their music and audio data, receiving instant payments in AUDIO tokens while retaining complete control over their content. Fans can use Audius to create playlists and earn rewards by sharing them.

AUDIO tokens serve as rewards for staking, allowing anyone to participate by staking their AUDIO balances. Rewards are distributed through ongoing token issuance. AUDIO can also be traded on cryptocurrency markets, enabling users to profit from price differences between buying and selling.

How should one select an Audius wallet?

There are various options available for storing your AUDIO tokens, and the choice of wallet depends on your specific needs and the amount you plan to store.

Hardware wallets, such as Ledger or Trezor, offer the highest level of security with offline storage and backup capabilities. However, they may require more technical knowledge and are generally more expensive. Therefore, they are recommended for storing larger amounts of AUDIO and are suitable for experienced users.

Software wallets provide another convenient option and are typically free and easy to use. They come in the form of smartphone or desktop applications and can be custodial or non-custodial. Custodial wallets manage and backup private keys on behalf of the user, while non-custodial wallets utilize secure elements on the user's device for key storage. While convenient, software wallets are considered less secure than hardware wallets and are ideal for smaller amounts of AUDIO or less experienced users.

Online wallets, or web wallets, are also free and accessible via web browsers on multiple devices. They are easy to use but are categorized as hot wallets and are generally less secure than hardware or software alternatives. It's important to choose a reputable platform with a strong security track record when opting for an online wallet. They are suitable for holding smaller amounts of cryptocurrencies or for frequent trading activities.

Kriptomat offers a secure storage solution for AUDIO tokens, providing enterprise-grade security and user-friendly functionality. Storing your AUDIO with Kriptomat allows you to easily trade and manage your tokens, ensuring a seamless experience for buying, selling, or trading cryptocurrencies.

Audius staking

AUDIO, being an ERC-20 token, operates on the Ethereum blockchain, which is currently transitioning from Proof of Work to Proof of Stake for improved efficiency. Security of the Audius network relies on a network of node operators who stake AUDIO as collateral. Artists have the option to run nodes themselves to host their content. The amount of AUDIO staked by node operators determines the likelihood of their node being used by artists and fans, allowing them to earn AUDIO from ongoing token issuance and aggregated fee pools.

In conclusion Audius is a groundbreaking platform in the music industry, aiming to decentralize this multi-billion-dollar sector and revolutionize how artists are compensated for their creative work. Through its unique ecosystem and incentives, Audius ensures network security and encourages active participation from all participants. The project seeks to redefine music streaming services, empowering artists with greater control over their intellectual property compared to traditional platforms like Spotify.