Around two years ago, Bitcoin and blockchain technology took the world by storm. Not many knew what they were or what they did. What they did know was that Bitcoins were becoming more valuable by the day and the technology behind it was gaining traction everywhere. Today, after some part of the hype has died down, we have started looking at them more objectively. Blockchain technology, in particular, has come under enhanced scrutiny. People have tried to understand its concept, its flaws and looked for potential applications of blockchain in various fields. As such, a number of different applications have sprung up, some pretty surprising. Many of them are, surprisingly, in the entertainment industry.
In fact, Blockchain technology is not only going to be used in the entertainment industry. It is poised to transform and revolutionize it.
Role of blockchain and cryptocurrency in entertainment industry
The entertainment industry and Blockchain technology — Without a doubt, this seems like a very odd pair at first. But as we dig deeper, we get to know about certain qualities of blockchains and cryptocurrencies which can completely change the face of the entertainment industry.
#1
Firstly, Cryptocurrencies makes micropayments possible. This is a big change which can be brought in the entertainment industry. Think about buying a single song for 50 cents. That might be difficult given the traditional systems of payments. The large amount of transaction charges would make it burdensome. However, it is completely possible using Cryptocurrencies.
#2
Secondly, blockchain can be used to create smart contracts. These contracts will only be executed when the system recognizes that certain criteria have been met. As such, no human intervention whatsoever would be required while doing transactions using blockchain technology.
#3
Finally, blockchain makes product tracking possible. So, there can be a giant public repository of records which will help sellers know who has purchased their content and when. Since the entire system will be full-proof and secured by the community itself, it will be very difficult for anyone to break in and change records.
Application of blockchain technology in the entertainment industry
Until now, we have seen those qualities of blockchain technology which can change the face of the entertainment industry. Now, let us take a look at the applications of these qualities and how change can be brought about.
#1 Blockchain solves the problem of content distribution
Till a few years back, any artist who was serious about making a career had to be at the mercy of the big labels. Until and unless he could get a contract from them, he would have found it very difficult to break in. No doubt, we have had some changes over the past few years. YouTube has gained popularity. So, artists can showcase their talent there and create a name for themselves. Also, there are certain platforms which allow customers to pay directly for purchasing music of independent artists. However, the issue of a platform persists. Some middleman is always needed, whether it is YouTube or those big distribution companies. Blockchain technology can change that. Using smart contracts, an independent artist can make sure that a customer receives the content as soon as the payment is made.
And bang! It does not require any middleman whatsoever.
#2 Digital Rights Management
Any content online has this common issue related to it; the one regarding intellectual and digital rights. Who owns the content? Who can download it? If someone pays for it and downloads it from some other source, can he keep it? The list goes on. Day in and day out, we keep hearing about some or the other issue regarding digital rights.
Blockchain technology, using a giant public ledger, can put an end to this menace. Any content created can be tagged and all transactions regarding the content can be tracked. In case of any dispute, all one needs to do is check the history of that content. This will be beneficial for the customer, the artist as well as any middleman involved in the transaction.
#3 Tracking of tangible goods
Expensive and rare goods have a special ring attached to them. People come in droves to check them out. The problem, however, is that they are attractive for fraudsters too. Today, there is rampant copying of artworks. Plus, the technology that we have today has made creating fakes even easier. This is a serious issue and reduces peoples’ faith in the system.
Blockchain can help in solving this problem to a large extent. Any work of art created can be attached with an RFID or similar tag. Now, wherever this artwork goes, genuine buyers will know about its location. In this way, buyers can cross-check the authenticity of the artwork being sold to him.
#4 Gaming
Firstly, blockchain can help in solving issues relating to distribution and ownership as mentioned above. Consumers can sleep better and indie game developers would get a way to distribute their games. For example, any developer creating android apps can directly sell his applications to consumers. But, that is not all.
Blockchain technology solves the problem of digital ownership. Conversely, it introduces the concept of digital scarcity. Previously, any digital content could have any number of copies. However, that will no more be the case after blockchain technology is used. This scarcity can be used to create games. In fact, games are already being developed on the basis of this concept.
Use Cases of Blockchain technology
Many people and institutions have already started putting efforts into the above applications of blockchain technology in the entertainment industry. Many of them have been successful. They have proved that even on a large scale, something like this can be done.
#1 Imogen Heap released her song on Ethereum
Imogen Heap has decided to release her song on the Ethereum blockchain. She is, in fact, the first artist to have done something like this. In an article, she explains why she did it and why it is a great path to take. According to her, putting her song on the blockchain gives her ability to directly compensate her staff members for every song sale. So, if she wants, she can have a certain percentage of song sales to directly go into the bank account of her production manager. Launching her song on the Ethereum blockchain has also her complete control over the entire marketing process. Now, she can raise prices whenever she wants to. If she wants, she can even give the song away for free. In traditional systems of distribution, once the song goes out of her hand, she would have no control over it whatsoever.
#2 VeChain and Everledger have tried to track tangible goods
VeChain is a startup based in Shanghai. It has a luxury goods management solution which uses blockchain technology. Its software solution helps companies identify it their goods are legit or not. In just two years since its inception, its impact can be felt and companies have started appreciating the product.
On, the other hand, Everledger has come to prominence for being one of the first companies to try and solve problems relating to diamond sourcing. Recently, it has also gone into the world of fine arts to combat fraud which regularly happens there.
#3 Crypto kitties, a game which uses blockchain technology has become popular
Crytpokitties is an online game which allows people to collect and breed kittens. The catch point is that it uses blockchain technology to its advantage. Once a cryptokitty is sold, it will stay with the owner forever. It cannot be copied nor can it be stolen. It is secured by Ethereum blockchain. This creates a sense of ownership in the buyer.
In December 2017, a CryptoKitty sold for $100000. In fact, the game has become so popular that it has raised concerns over usage of Ethereum blockchain. People have suggested that the game is using too much space on the blockchain.
Why moving to blockchain is a boon to the entertainment industry
Moving to Blockchain will be extremely beneficial to the entertainment industry. They can delight customers in ways which were not possible before. If used the right way, blockchain technology can help them restore customers’ faith in the system.
#1 It enables new forms of entertainment
Blockchain can easily be used in creating games which are completely different than the ones we know today. Think about the game of Cryptokitties we just mentioned above. It uses the concept of digital scarcity in a very simple way.
Now, we also have a connecting link between the digital world and real world. Both can have scarce resources. As such, more games connecting the digital to the physical world can be created and popularized.
#2 It reinforces trust in the system
Artistic fakes are a big cause of concern. Moreover, the industry has to bear the brunt of it. For every fake discovered by one person, ten other people stop buying expensive artwork. If blockchain can be used to guarantee the legitimacy of artworks, this problem can be solved to a very large extent. A universal system of identifying original pieces of art can be created. This will go a long way in helping people trust the system more.
#3 Big labels can identify rising talents
Blockchain can help individual artists showcase and sell their work directly. On the face of it, this seems like an issue for big distribution houses. Actually, it isn’t. With this technology, these houses will be able to spot rising talents much more easily. When they publish their songs, they can be surer of success.
To conclude, we must understand that the applications of blockchain in the media industry are only going to grow over time. As of now, people do not know much about blockchain. Plus, they do not use a lot of Cryptocurrencies. With time, as more people get to know about it and as more people use Cryptocurrencies, we will find many more uses of blockchain technology in this industry. Blockchain really has the capability of solving some very big problems of this field.
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