Blockchain will provide a business value-add of $176 billion by 2025 and $3.1 trillion by 2030 across industries. One-third of CXOs are considering adopting or are using blockchain technology. Sounds fantastic, isn’t it? The main question what exactly blockchain is? What do we need it for?
Shortly, blockchain is data store that is distributed across a network among participants that are able to come to consensus on the validity of transactions, without the need for a central authority to mediate or authenticate.
A blockchain records data across a peer-to-peer network. Every participant can see the data and verify or reject it using consensus algorithms. Approved data is entered into the ledger as a collection of ‘blocks’ and stored in a chronological 'chain' that cannot be altered.
1. Blockchain’s distributed ledger is a database of transactions that is shared and synchronized across multiple computers and locations without centralized control. By removing the need for a central authority or middleman, blockchain can speed up transactions, leads to cost effectivity, reduces the need in third-party intermediaries.
2. Blockchain employs cryptography to protect the identity of a user and ensuring the safety of transactions.
3. This technology not only provides transparency in data management as all the data is accessible for all the users, but also ensures peer-to-peer operation and near real-time updating of data processing results.
4. The blockchain can store any data that can be represented digitally including video, audio, or text; everything can be stored digitally by blockchain without being vulnerable to any manipulation.
5. By design, a blockchain is inherently resistant to modification of the data. Transactions are verified and approved by consensus among participants in the network, making fraud more difficult and falsifying or destroying them to conceal activity impossible.
Piracy: Blockchain has the potential to restructure the industry. It would refrain content aggregators, platform providers, and royalty collection bodies from tampering with copyrighted content thereby empowering copyright owners. Blockchain's potential in payment-focused use cases have been proven and it can restructure the payment ecosystem by accurate pricing, advertising revenue sharing, royalty payment to copyright holders etc.
Consumption of paid content beyond geography: blockchain can turn out to be a gamechanger with the potential to replace DRM or reduce the complexities associated with the system. As each moment of consumption is tracked in the blockchain, payment for the specific user will be automatically initiated as per the smart contract terms.
Ineffective advertising budgets: through blockchain media usage is directly linked to the respective content items. Depending on factors such as content usage, type of content consumed, etc. marketers can target customers effectively. The private viewer information can be shared with AI agent who would cater relevant ads to relevant customers.
Tokenization of video and audio content
With adoption of blockchain, most assets in the world will get tokenized, i.e., will exist on the blockchain and people can buy or sell using crypto currencies. Video/audio will be one such major asset being digital content, it's a perfect fit for blockchain technology.
Enhanced licensing and monetization
Blockchain has the capability to license content in innovative ways. Small pieces of content content can also be licensed using blockchain and media industry will benefit if video bloggers or video content creators can embed a movie clip to their creative piece ensuring each stakeholder are compensated properly.