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How AI is Transforming Music Creation in Web3
June 20, 2023
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In April 2023, Warner Music Group chief digital officer and executive vice president of business development Oana Ruxandra told CoinDesk’s The Hash that she expects music tools driven by artificial intelligence (AI) to “open up the world like we haven’t before,” inspiring “new forms of creativity and sub-genres” across the music and entertainment industries.

While Ruxandra’s outlook is optimistic, she also acknowledged the concerns of many musicians: “We have to be very vigilant,” she said, noting the importance of protecting the creativity and rights of artists. Just days before Ruxandra’s appearance on The Hash, an AI-generated deep-fake music track titled Heart On My Sleeve gained traction by mimicking the voices of songwriters Drake and the Weeknd – even though neither artist had participated in its creation. Instead, the song’s creators trained the artificial intelligence bot using music by the artists, which angered label owner Universal Music Group over.

Other musicians have been more welcoming to the new technology. Less than a week later, electropop musician Grimes invited her fans to create their own AI-dubbed songs using her voice and extended the offer to split royalties 50/50, demonstrating one creative solution to the AI deep-fake conundrum.

Keeping intellectual property challenges in mind, there’s still no doubt that AI music tools can place new forms of expression at an artist’s fingertips. Sometimes, AI can even be used to enhance music production by filling in technical or intellectual gaps in an artist’s abilities, helping them bring ambitious concepts to life in a matter of clicks. These tools can also perform sound engineering tasks more efficiently, lowering barriers and the time it takes to release music.

As we look toward Web3, companies and artists are taking AI even further by pairing music with immersive, interactive and user-generated experiences in the metaverse and beyond.

AI music tools in Web3

A number of crypto-native musicians and platforms have already found creative ways to integrate AI tools into their practice.

Take VNCCII, for instance, the metaverse-first alter-ego of Sydney-based female producer Samantha Tauber. Utilizing the industry-leading real-time 3D creation tool, Unreal Engine, Tauber dons her avatar to stream live broadcast interviews from the metaverse, in addition to performing in virtual concerts and shows. Like any set or costume change, the digital component of VNCCII’s artistic identity is expanding the borders of her artistry.

Web3 music company PIXELNYX combines augmented reality (AR) experiences with metaverse gaming and is focused on helping artists build memorable experiences for fans. Co-founded by the electronic music producer Deadmau5, who has been known for sending fans on quests through The Sandbox and hosting shows in Decentraland, PIXELYNX aims to evolve our traditional notions of fandom through the use of AI, Web3 and user-generated content (UGC).

In April, PIXELNYX released Korus, a tool that allows users to create AI-powered music companions using officially-licensed artist content.

When used in this spirit, AI music tools can aid, augment or enhance an artist’s creative style. While the tools are not good enough yet to replace artists, they are impressive and constantly “learning” through continued human interaction. Replacing musicians with AI has never been a popular take, as proven by the pushback Spotify received after testing its own version of artificial music curation. Yet despite the controversy surrounding AI, today’s musical artists may be able to benefit from using AI-assisted music production in ways that respect the craft.

Ideation and collaboration

WarpSound, an adaptive AI music platform, has found several ways to integrate blockchain-based collectibles and digital avatars into its business offerings. The company, which produces music content, non-fungible tokens (NFTs) and social experiences, is soon releasing a software API that composes original music note-by-note in a range of styles.

Founder and CEO Chris McGarry, an entrepreneur and media executive who previously severed as the music lead at Facebook’s virtual reality unit Oculus, says WarpSound’s tools help artists find new inspiration and source material that invigorates their creative processes. The company is the recipient of The Sandbox’s Game Maker Fund, which supports game designers in The Sandbox metaverse, and plans to build a home venue inside the platform where artists can experiment with generative music.

WarpSound also worked with Mastercard as the AI music partner for their Artist Accelerator program, where McGarry says he’s observed new benefits to the creative process.

“Last week, I was in a set of virtual studio sessions with artists participating in the program,” said McGarry. “We were working with our generative AI music interface to present a set of musical ideas, then having the artist shape those and iterate until they landed on something, the essence of which resonated with them, that they were motivated to work with.”

WarpSound has also partnered with the Tribeca Film Festival and YouTube to create interactive and playful music experiences between artists and audiences.

Composing and arrangement

If your music project is less about live performance and more about the finished product — maybe you’re composing original music for a podcast, metaverse event, YouTube channel, Web3 video game or educational content — you can use AI to speed up the process of composition and arrangement. Of course, the world’s most talented virtuosos can likely do musical scales in their sleep, but with so many elements to sound and video production, it’s becoming standard practice to use AI to insert quick scales, arpeggios, runs and harmonies to original music.

Tools like Riffusion allow users to provide text prompts that are transformed into music. Soundful is another AI platform that allows people to generate and download royalty-free tracks.

If you want to go one step further and add lyrics, the popular do-it-all tool ChatGPT can write a two-verse song with a pre-chorus, chorus, bridge and outro in just under 30 seconds with minimal prompting. Of course, the lyrics may be a touch simplistic or cheesy — but aren’t some of the best songs?

In most cases, songs generated by AI are reproducible without the need to pay licensing fees, given they were made by machines and therefore not protected under U.S. intellectual property law. Most platforms, however, charge a subscription fee.

These sounds can then be minted as NFTs and sold on marketplaces like OpenSea. Platforms like Royal.io also allow artists to join the site and offer their songs as fractionalized NFTs that offer royalty payouts to fans.

The limits of AI music production

You may have already heard that musical AI tools aren’t yet that sophisticated, especially when compared to the latest AI text-to-image generators (which have already been used to spin out whole comic book collections) and Open AI’s chatbot, Chat GPT (which reportedly passed the Bar exam).

Audio production indeed requires more computing power than static text and image outputs and therefore is lagging behind, according to experts in the field. Alexander Flores, head of tech and strategy at the music research network, Water & Music, says that tech innovation generally travels from the least data-intensive formats to the richest. In the case of AI, it makes sense why chatbots are perhaps faster to develop than AI audio and video rendering.

In one online discussion thread, a Reddit user pointed out these limitations, emphasizing that while a writer can proofread and edit an AI chatbot’s outputs in seconds, it takes several minutes to listen to a song, and sometimes even hours to edit it. Machines are also slower to learn from AI datasets since audio files that feed them rarely have comprehensive text descriptions to teach the AI about the file’s attributes (genre, tempo, key, instrumentation, etc.). Meanwhile, text and image-based AIs can swiftly trawl through thousands of words and visuals.

“How long it takes to consume the content matters a lot,” said Flores. “With a song, you're locked in for three minutes. You can't speed it up because then you're not experiencing the actual song as it was written.”

In addition, images are static, while songs are more dynamic: “Audio is just much higher dimensional,” said Stefan Lattner, managing researcher at Sony CSL, a creative technology lab, in a panel at Water & Music’s inaugural Wavelengths Summit. “While images have a fixed number of pixels, in audio you have a variable number of seconds that you want to generate.”

Nonetheless, Water & Music calls creative AI the most disruptive technology for the music business since Napster, the peer-to-peer file-sharing application that made music distribution virtually free, as well as borderless and permissionless – a concept familiar to crypto-natives.

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🚀Comprehensive Overview of Reggie Middleton's Patents
Pioneering Innovations in Decentralized Finance and Blockchain Technology

Key Takeaways

  • Innovative DeFi Solutions: Reggie Middleton has developed groundbreaking technologies that facilitate trustless and low-trust value transfers, revolutionizing decentralized finance.
  • Robust Patent Portfolio: His patents cover a wide range of applications, including blockchain infrastructure, peer-to-peer transactions, digital asset security, and regulatory compliance.
  • Legal and Market Impact: Middleton's patents have significant legal standing, demonstrated by successful defenses against challenges and high-profile lawsuits, positioning him as a key player in the FinTech industry.

Introduction

Reggie Middleton is a distinguished innovator in the fintech and blockchain sectors, recognized for his extensive portfolio of patents that address critical challenges in decentralized finance (DeFi) and trustless value transfers. His work has been instrumental in advancing blockchain technology, enhancing security, scalability, and accessibility within decentralized ecosystems.

Overview of Reggie Middleton's Patent Portfolio

Trustless Value Transfer Systems

Middleton's patents in this category focus on enabling secure transactions between parties with minimal or no trust. Utilizing advanced cryptographic protocols and blockchain technology, these systems eliminate the need for intermediaries, thereby reducing costs and increasing transaction efficiency.

Mechanisms and Applications

His innovations include systems for decentralized exchanges, peer-to-peer lending platforms, and digital marketplaces. An exemplary application is the facilitation of currency exposure hedging, allowing users to swap risks (e.g., AUD/USD) via Bitcoin without prior trust between parties.

Blockchain Infrastructure Enhancements

Middleton has developed solutions that address scalability, interoperability, and consensus mechanisms within blockchain systems. These enhancements are crucial for handling high transaction volumes and ensuring seamless interaction between different blockchain networks.

Key Innovations

His patents introduce scalable blockchain infrastructures capable of supporting enterprise-level applications and multi-chain platforms. By improving consensus algorithms, Middleton's work ensures faster and more secure transaction validation processes.

Peer-to-Peer Transactions

The patents in this domain enable direct asset exchanges, such as cryptocurrencies and non-fungible tokens (NFTs), through smart contracts and decentralized networks. These innovations are foundational for modern DeFi platforms and decentralized governance systems.

Practical Implementations

Middleton's technologies facilitate seamless peer-to-peer transactions, enhancing user autonomy and reducing dependency on centralized institutions. This is particularly evident in decentralized exchanges and governance frameworks where direct asset management is paramount.

Digital Asset Security

Ensuring the security of digital assets is a cornerstone of Middleton's patent portfolio. His solutions include advanced storage systems and multi-signature wallets designed to protect against cyber threats and unauthorized access.

Security Solutions

Implementing cold storage systems and multi-signature protocols, Middleton's patents provide robust defenses against potential security breaches, safeguarding cryptocurrencies and other digital assets from malicious attacks.

Regulatory Compliance and Central Bank Digital Currencies (CBDCs)

Middleton's patents also address the growing need for regulatory compliance within digital financial systems. His frameworks for issuing and managing CBDCs align with existing regulatory standards, facilitating the integration of government-backed digital currencies into the broader financial ecosystem.

Compliance Frameworks

These technologies ensure that digital currency systems adhere to legal requirements, enabling smoother adoption and acceptance by both financial institutions and regulatory bodies.

Legal and Market Impact

 

Patent Enforcement and Legal Challenges

Reggie Middleton has actively defended his intellectual property, most notably filing a $350 million lawsuit against Coinbase Inc. for alleged patent infringement. The Patent Trial and Appeal Board (PTAB) has upheld the validity of his patents, denying Coinbase's Inter Partes Review (IPR) petition, thereby reinforcing the strength and enforceability of his patent claims.

Market Position and Influence

Middleton's patents are considered some of the most powerful in the FinTech industry, covering essential technologies that underpin DeFi and blockchain operations. With approximately 90% of blockchain patent applications typically rejected by the USPTO, Middleton's successful patents distinguish him as a leading innovator in the space.


Future Directions

Integration of AI in Decentralized Systems

While current patents focus on human-driven transactions, the foundational technologies developed by Middleton provide a robust framework for future integration of artificial intelligence (AI). Potential applications include automated trading systems, intelligent asset management, and enhanced decision-making processes within DeFi platforms.

Expansion into Global Markets

With patents protected in multiple jurisdictions, including the U.S. and Japan, Middleton is well-positioned to expand his technological solutions globally. This expansion will likely involve adapting his systems to comply with diverse regulatory environments and addressing region-specific financial challenges.


Detailed Patent Analysis

Technological Innovations

Middleton's patents encompass a range of technological advancements designed to enhance the functionality and security of decentralized financial systems. These include but are not limited to:

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Scalability and Interoperability

Addressing scalability, Middleton's patents introduce solutions that enable blockchain networks to handle increased transaction volumes without compromising performance. Additionally, his work on interoperability protocols facilitates seamless communication and transaction processing across different blockchain platforms, fostering a more integrated and efficient decentralized ecosystem.

Regulatory Alignment

In response to the evolving regulatory landscape, Middleton has developed frameworks that ensure digital financial systems comply with existing laws and standards. This alignment is crucial for the widespread adoption of decentralized finance solutions and the issuance of Central Bank Digital Currencies (CBDCs).

Conclusion

Reggie Middleton stands out as a pivotal figure in the FinTech and blockchain industries, with a patent portfolio that not only addresses current technological challenges but also lays the groundwork for future advancements in decentralized finance. His innovations in trustless value transfers, blockchain scalability, and digital asset security have significant implications for the financial ecosystem, reinforcing the importance of robust intellectual property in driving technological progress. Through sustained legal defense and strategic market positioning, Middleton continues to influence the direction and adoption of decentralized financial systems globally.

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⚖ SEC: many crypto staking services aren’t securities ⚖

The Securities and Exchange Commission (SEC) yesterday clarified that most staking services don’t involve securities, resolving a major uncertainty that has hung over the crypto industry. The guidance provides regulatory clarity for major platforms like Coinbase, Kraken, and Lido, which collectively handle billions in staked assets.

The ruling removes a regulatory cloud that has limited institutional adoption of staking services. Without this clarity, staking service providers faced potential enforcement action and costly compliance requirements designed for traditional securities.

Blockchain staking typically involves locking tokens to secure the network and earning a reward in return. The least contentious option would be someone who operates a node themselves, keeping custody of their assets and staking directly.

However, there’s been a major question mark hanging over staking-as-a-service, in which a third party performs the staking on behalf of the token owner. This is hugely popular because on Ethereum the minimum staked amount is 32 ETH (over $80,000 at current prices) and doing it yourself requires appropriate hardware and technical knowledge.

How the SEC reached its decision

For assets that aren’t obviously securities, the Howey legal test is used to establish whether there’s an “investment contract.” A key test is whether the return is dependent on the entrepreneurial efforts of someone other than the investor.

Applying this test to staking services, the SEC concluded that the staking service provider is simply providing an “administrative or ministerial activity” rather than an entrepreneurial one and doesn’t set the rate of return earned by the investor, although they deduct fees.

The SEC takes the same view whether the investor retains custody of their tokens or the service provider additionally provides custody. If a custodian is involved, the note only covers the situation where the investor chooses how much to stake.

However, the devil is in the details. For example, the opinion does not cover liquid staking (where the token holder receives another token while the main tokens are locked), re-staking or liquid re-staking.

One commissioner strongly disagrees

This interpretation faces significant pushback from Democrat Commissioner Caroline Crenshaw, who noted that these are simply staff opinions and don’t affect the law. She went as far as saying that in authoring the note, the Division of Corporate Finance was channeling the adage “fake it ’till you make it.”

In her view, the note inadequately justified the legal interpretation and she believes the conclusions conflict with the law. However, she acknowledged that certain bare bones staking programs may not involve an investment contract.

Since the change in administration, the SEC has published several staff notes related to digital assets, the first of which clarified that solo and pooled mining for proof of work blockchains will generally not be considered to involve securities.

While this is staff guidance rather than formal regulation, it signals the SEC’s likely enforcement approach under the new administration. It marks a significant shift in how crypto staking will be regulated, though the strong dissent suggests this interpretation could face challenges if the political landscape changes again.

The newly proposed digital asset legislation, the CLARITY Act, doesn’t explicitly cover staking. However, it includes explicit regulatory relief regarding blockchain-linked tokens, making such guidance less vulnerable to future political shifts by providing statutory protections for digital commodities that meet specific criteria.

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XRPL Unleashes Batch Power—What’s Hidden in the 2.5.0 Rollout?
XRPL prepares for its 2.5.0 upgrade, introducing batch transactions and advanced features to challenge Ethereum and Solana.

Highlights:

  • XRPL is preparing to release version 2.5.0 in June with several major feature upgrades.
  • The new XLS-56 feature allows users to group up to eight transactions in a single batch.
  • Batch transactions support atomic swaps and enable smart transaction dependency logic.
  • XRPL is also testing features like Account Permission Delegation and Dynamic NFTs.
  • Smart Escrows is currently being evaluated on the WASM Devnet for future release.

The XRP Ledger (XRPL) has confirmed integrating a major XLS-56 feature in preparation for the upcoming 2.5.0 upgrade. This release, scheduled for June, introduces batch transactions and supports future scalability. As XRPL aims to enhance performance, it moves to compete directly with Ethereum and Solana.

XLS-56 Brings Batch Transactions and Atomic Swaps to XRPL

XRP Ledger now includes the XLS-56 amendment, which enables users to group up to eight transactions in a single batch. This batch feature supports atomic swaps and smart transaction dependencies across the XRPL ecosystem. Consequently, it streamlines transaction processes and optimizes blockchain functionality.

Integrating batch transactions will support XRPL-based monetization and peer-to-peer NFT trading on a broader scale. With more efficient bundling, developers can execute advanced logic while keeping operational costs low. The upgrade demonstrates XRPL’s strategy to reduce complexity and promote seamless operations.

RippleX Senior Software Engineer Mayukha Vadari confirmed this integration through an announcement on X. She emphasized the technical breakthrough in batch processing in XRPL 2.5.0. After testing, the feature will be live once the amendment receives full validator approval.

Testing Begins for Next-Gen Blockchain Tools

Alongside batch processing, XRPL is testing additional features for phased deployment across the network. These include Account Permission Delegation, Multipurpose Tokens, Credentials, Permissioned Domains, and Dynamic NFTs. Each feature is being refined through XRP Ledger’s Devnet and Testnet environments.

The Devnet includes completed amendments that are still pending release, while the Testnet mirrors the mainnet for simulation. These networks allow developers to review feature behavior before final mainnet integration. This structured process ensures that XRPL can maintain reliability while deploying innovations.

Smart Escrows is another addition currently undergoing testing on the WASM-based Devnet. The tool aims to enhance asset handling with programmable conditions on XRPL. Once validated, this feature will expand XRPL’s smart contract capabilities.

XRPL Faces Competition from Ethereum and Solana in Upgrade Race

The XRP Ledger upgrade emerges when Ethereum prepares for its Pectra release and Solana advances with Alpenglow. Each platform is racing to improve network performance, though XRP Ledger focuses on reducing costs and enhancing functionality. Meanwhile, Ethereum and Solana prioritize scalability and speed.

XRPL’s approach includes integrating AI-powered tools like XRPTurbo to strengthen DeFi automation and utility. These enhancements position XRPL as a versatile ledger for financial and decentralized services. The upgrade aligns with long-term goals of supporting advanced applications and high-throughput demands.

XRPL continues to refine its core infrastructure with performance, modularity, and stability as key priorities. With XLS-56 now integrated, the ledger can support more complex transaction workflows. XRPL’s roadmap reflects a clear commitment to expanding use cases across its decentralized environment.

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