Now, almost everyone is aware of the term blockchain - as a digital database that has made ultimate evolution in financial technologies or an underlying enabling technology built-up for Bitcoin, a cryptocurrency.
Founder and executive chairman of the World Economic Forum, Klaus Schwab state summary in his book - the Fourth Industrial Revolution: the blockchain is a communal, programmable, cryptographically safe and trusted ledger that no particular user controls and can be assessed by anyone in the group.
Incorporating the potential, blockchain has become a powerful disruptive force. Featured in the same book, around 800 executives made a survey of which 58 % believe that up to 10% of global GDP can be put in storage via. Blockchain technology.
The advent of Blockchain technology has introduced several important features that can be leveraged in creative economy:
The introduction of such features reaches beyond blockchains original use in financial transactions. Almost everywhere, any transaction, product lifecycle, workflow, or supply chain using blockchains.
An Artist-Centric Model for Blockchain
In today`s creative economy, blockchain has redefined the method - how artists are being paid, acting as a platform for creators of intellectual property to obtain a value for their work.
Artists mostly lodge a common complaint i.e. as performing rights society and some intermediaries, including Spotify and YouTube progressively integrated themselves into the value chain - between artists and their audiences. Artists take delivery of smaller cuts of revenue and might have less say over - how their creative work is priced, shared, or advertised.
For instance, Spotify requires in between 120 to 170 streams for holders in order to collect their first penny.
Wences Casares, CEO of Xapo, one of the largest custodians of Bitcoin says, “Nowadays, where everyone is willing to pay for the right to perform a song at a concert or the right to perform a song in a movie, caused quite a lot of transaction friction.”
It seems like that creative work in actual worth much more, but the issue is creative work is underestimated due to the transaction frictions.
Though, several features introduced in blockchain function as an ideal place to highlight these issues. Among all, five of these forces have been framed here.
Force 1: Enabling ‘Smart Contracts’
Blockchains hosts “smart contracts” in order to support artists manage digital rights while allocating revenue shares to contributors for their creative work. These smart contracts incorporate the ability to substitute conventional contracts that are esoteric and leave artists with authority over the terms of the content, they generate.
In order to make the royalties to be more inclusive, Blockchain offers reasonable terms for composers, lyricists, and musicians - all the stakeholders are involved in this creative process. For artists to seek immediate royalty payments and ownership of their content, PeerTracks is a beautiful example of this service. However, the service works simply – attributing a smart contract to an artist`s song, further allocating the revenue as per the terms of the contract.
Force 2: Establishing Transparent Peer-To-Peer Transactions
Public nature - one of the biggest pleas of the blockchain. Permit to view and validate - every transaction of a creative work, including who get into the work and the revenue generating at any point in time. It provides stakeholders a better sense of the creative work that is generated, all in the form of a digital ledger introduced in the blockchain.
Moreover, blockchain makes the identity of the owner of the creative material transparent. An as an example, we are highlighting Ascribe.io who offer attribute ownership of creative works securely. By providing creative work a unique cryptographic ID, verified with blockchain, this service actually works. This shows that the ownership is trackable and creative content can be shared securely.
Force 3: Promoting Efficient, Dynamic Pricing
A risk of mispricing is always associated with the creative content. However, prices can be made more dynamic by making an insight the demand of creative content. As per the supply and demand, prices for creative content could fluctuate. No doubt, artists incorporate the authority to control prices, also having the ability to fix prices themselves, avoiding the complex web of intermediaries.
Moreover, the blockchain provides the records of the one - who has been settled access rights to creative works, this could then be bounded to price creative works dynamically. Perhaps, artists are closer to their creative work as they were before, however, they include a stronger voice in the pricing scheme and also, provide discounts on their works at certain times.
Force 4: Allowing ‘Micrometering’ or ‘Micromonetizing’
Consumers are allowed to purchase individual song tracks in digital music stores such as iTunes. Via blockchain, creative works snippets can be made available for a price. Let`s suppose, a song of few seconds used in a movie trailer. This sort of “micro metering” works, incorporating the blockchain record the precise components of the creative work while defining the lowest consumable unit of creative content.
This includes huge implications - why buy unnecessary parts of creative material? Existing services like Streamium have disrupted artist`s traditional method of remunerating through intermediaries - introducing micrometering payment services. However, in advertising - brave enable Internet users to reward content providers they support in Bitcoins in return for an ad-free experience.
Says, Mike Belshe, co-founder and CEO of BitGo,” It enables consumers to help content creators of their choice while reducing unwanted.”
Force 5: Establishing A Reputation System
Blockchain can advantage link reputations to detailed “addresses” included in the blockchain, enabling both the producers and consumers of creative content to authenticate each another. A stronger collaboration and better behavior are thus encouraged while promoting cooperative terms for content creators and consumers at the same time. However the participants - who continually don’t agree on terms in the contract or try to game the system of their own - would have their actions recorded, acting as a warning against misbehaviors.
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