Blockchain in the Entertainment World: How it’s changing the industry

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Satoshi Nakamoto’s Bitcoin ledger changed the world of finance and cryptocurrency in 2009. It’s a digital currency that uses blockchain technology for safer transactions between people without intermediaries.

Bitcoin is just one application of blockchain. If you’re unfamiliar with the term, “blockchains” are basically chained data blocks that are decentralized for the transparent use of a collective group of people.

Unlike most databases, no single user takes control of the blocks, and any sort of tampering is visible to the entire group.

This technology has proven successful in finance, and the value of Bitcoin has increased tremendously over the last decade.

So what if we incorporated this method in the entertainment industry? Let’s break down blockchain in media and entertainment.

Blockchain lessens piracy

One big problem for creators like artists, musicians, and filmmakers is intellectual property infringements.  Even before their works are released, hackers and malicious groups may get a hold of them illegally.

Blockchains enable creators to track the movement of their content by paying customers due to the nature of its transparency. They are also more secure as these data blocks have unique hashes and previous hashes, similar to fingerprints that make it almost impossible to hack.

No need for a middle-man

Platforms like Spotify, Netflix, Amazon act as intermediaries for creators, sellers and artists to reach a broader market. This can increase content production rates and leave lesser revenue for the creators themselves.

Since blockchain is decentralized, creators are able to distribute their content to consumers directly. The bypass of a middle-man facilitates sales and rakes in more revenue share for the creator. This is especially helpful to smaller creators that are just starting out.

Blockchain in the Entertainment World: How it’s changing the industry

Builds up trust

There is such a thing called “Smart Contracts” that are built on a blockchain. These contracts are attached to the creator’s content which is a better alternative to the royalty system. In place of complex and unclear compensations (royalties) from the distributer’s end, smart contracts allow accurate, fast, and secure payments.

Since every movement can be tracked, it eliminates the chance of dispute over the division of revenue share between the creator and the stakeholder.

Efficient Micropayment system

Consumers tend to hesitate on long-term subscriptions. For smaller media platforms, providing one-time payments that are affordable and efficient can be troubling.

This is where blockchain-based micropayment systems come in. Unlike their existing counterparts, the blockchain’s automated sale of content on a per-use basis saves administrative costs for the creators.

Blockchain micropayments are more affordable and optimized. In this way, smaller media companies can reach a better market for consumers.

Disadvantages of Blockchain

While the technology offers game-changing pros, let’s look at some of the cons of blockchains:

  • High energy consumption: Because of its vast distributive structure, blockchain demands extensive electric power.
  • Limited storage: The blocks are unable to store large amounts of data.
  • The long road to completion: The technology of blockchain as of today is far from mature. It’s evolving, but it might be too early for its current status to be standardized.
  • Data is fixed: While this reduces tampering, it can also serve as a drawback. All the data in blockchains are immutable and fixed.
  • There is a lack of proper understanding of the adoption of blockchain in mainstream media.

A look into the future

The entertainment industry is constantly changing and finding new ways to grow its market. The use of blockchain for transactions other finance like creating artwork, videos and original content could be revolutionary in the future.

While the idea of mainstream adoption is unlikely as of now, there is a high chance that big companies and creators will soon leverage blockchain technology in many innovative ways.

Blockchains simplify the cycle of a trade, offer transparency and provide effective management of transactions. If such technology could be used by both creators and consumers alike in the next five years, then the media and entertainment world would hit its prime.

Himhimi C
Himhimi C
Lalchhanhimi or Himhimi as she goes by is a 2nd-year B.A. student majoring in English Language and Literature at Pachhunga University College. She was born and raised in the hilly areas of Aizawl, Mizoram and currently resides at Bethlehem Veng, Aizawl with her family. An avid lover of Arts and Literature, Himhimi has tried her hand in poetry, story writing and the likes throughout her academic journey. She runs a WordPress blog by the name 'acorndews' where she expresses her creativity freely without the barriers of formal templates and formats. Through her works and writings, she hopes to connect with other souls who may share a similar passion for the art of writing.

2 COMMENTS

  1. No doubt this writer got skills and great perspective. She ain’t not a pit, but i fall for her.. Opsie

  2. Informative, interesting, straight to the point; no roaming sentences. Nailed it!

    Keep grinding C.

    Got your back😉

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