Ujo Music Launches Streaming Payments Platform using DAI in Conjunction with Connext
Ujo Music, the Ethereum based music software services company, backed by ConsenSys, has just announced a new addition to their streaming portal, that lets users get paid for steaming, using crypto. This announcement was made on the 28th of March.
A few months ago, specifically in December of 2018, the service officially introduced the full version of their Ujo Portal which allowed listeners and fans to purchase music on the platform, using Ethereum. This new addition will now let artists get their payments for all streams in Dai, a decentralized stablecoin.
How It Would Work
In partnership with Connext, Ujo is using a payment channel based off state channels, to make this a reality. A state channel is kind of scaling technology based on Ethereum’s Layer Two Solution. This is basically a way for users to handle many transactions between themselves and other users using this improved and optimized technology.
The payment channels in question here are like a subdivision of these state channels and have been enhanced to make peer-to-peer transactions a lot more seamless. This is what Connext brings to the table: a fast way of connecting the payment channel to the Ujo’s portal using Dai (DAI) because it’s the primary cryptocurrency used by the Connext Payment Network.
According to Arjun Bhuptani, a co-founder of Connext:
“Moving dApps into the mainstream will rely on fast, user-friendly, and economically viable P2P payment infrastructure. We believe that Ujo is leading a shift in how users pay for content on the internet and we’re thrilled to be working with MakerDAO and Ujo to drive value directly from consumers to creators.”
Using the Connext Payment System also ensures that the process costs a lot less as the fees charged for every transaction is significantly minimized. The official announcement from Consensys explains this better saying:
“We integrated Connext’s payment channel implementation to minimize fees per transaction. Since streaming pay events are frequent and low in cost, it didn’t make sense to process every transaction on Ethereum Mainnet. By using payment channels, transaction gas costs are only paid when a channel is closed and money is withdrawn.”
On The Use Of Dai As Primary Payment Asset
According to the CEO and co-founder of MakerDAO, Rune Christensen:
“A core benefit of Dai is that it brings the stability and utility of money into the future by unlocking the power of a decentralized stablecoin. In working with Ujo and Connext to enable streaming payments for artists, we are doing our part to help creatives benefit from the speed, efficiency, and security that comes with the blockchain.”
A Portugese DJ and record producer known as RAC, who is quite vocal about Ethereum, also gave his 2 cents on this development. According to him:
“It’s been really exciting to watch the Ethereum ecosystem develop over the years since we released the first record. State channels and stablecoins address the key bottlenecks in the system and bring us closer to the promise of this technology. I’m especially happy that a decentralized stablecoin (MakerDAO’s Dai) is a reality and eliminates one of the main complaints about crypto: price volatility. Streaming royalties using this technology brings it to parity with legacy infrastructure, and now the real fun part begins.”
The Streaming Payment Platform
The idea of the new addition to the Ujo Portal has been in the works for quite a long time, starting from the regular music downloads. This new method will still ensure that the user-friendly nature of the portal will be upheld and also, royalties will be paid more easily and automatically.
ConsenSys notes that a big issue at the beginning was the problem of gas costs, regarding ETH payments. This is a problem that the partnership with Connext ultimately solved using the Layer Two solution.