Why TikTok's New Streaming Partner Uses Blockchain

The fact that TikTok chose Audius, which relies on blockchain technology, as its first music streaming partner may open up business opportunities for similar platforms like Livepeer, a blockchain-based video streaming service. After all, TikTok could have picked Spotify or Apple Music as a music streaming service to link with; instead, it chose a three-year-old startup. 

The show of support sent Audius’ AUDIO token, a blockchain-based digital asset used to represent voting power in deciding how Audius functions, surging on Tuesday. It’s currently at $2.99, a 23% increase from the day before, propelling its market cap past $1 billion for the first time, according to CoinMarketCap. 

The partnership allows artists to share their Audius music tracks on TikTok through the TikTok Sounds feature. That makes sense. But why does TikTok need blockchain technology to power music streaming in the first place?