The blockchain and Bitcoin may be interconnected but they are not one and the same thing. Most people tend to associate the blockchain with only Bitcoins and other crypto coins. However, the blockchain has far more potential that makes it a disruptive technology; it has the power to impact almost every industry out there, whether it is healthcare, finance, or even the entertainment industry.
How have Bitcoins resolved challenges in the entertainment industry?
- The entertainment industry has started exploring different ways of using the blockchain to resolve many of its underlying issues. One big problem that has affected most creative industries is the problem of ownership of music or movies. This refers to who the creator is, who has control over the music, and who makes the deal. This is known as the chain of title; this must be understood well and the blockchain helps to identify these because of transparency of its records of transactions. With help of blockchain technology, Intellectual Property rights may be tracked.
- Blockchain is being further explored for offering an alternative to contracts; its smart contracts are the autonomous programs capable of facilitating data exchanges like data in payment processing, distribution agreements, and licensing. When there is a public immutable ledger of transactions IP usage can be restricted and monitored effectively and payment information becomes transparent too. Everyone’s contributions are accounted for and this way the blockchain streamlines the method of tracking royalties and frees up budget.
- While being a part of the entertainment industry has become easier with platforms like YouTube, distribution of content is still not fair and neither is compensation paid to artists. But, with blockchain technology this issue can be largely resolved. Communication will become decentralized; artists and their fans will be able to directly interact with one another without having to rely on third parties. As the blockchain will have records of transactions, the authorized viewers can monitor things like content usage, ownership transfer, and smart contracts related to content. The content creator will also be able to manage his authorized viewer’s list without being controlled by a third party. By bypassing distribution channels, big portions of the revenue can now be collected by music artists directly. Micropayments using stable coins like the Bitcoin will make it easy for consumers to buy content without having to worry about costly transaction fees or fluctuations in exchange rates.
- Blockchain can also offer solutions for identifying whether a trading platform or commodity is authentic or not. It provides immutable records of transactions, and the technology can also be applied to products by offering each a unique identity like a QR code or an NFC chip. Using such bitcoin code, content creators can link real-world production to digital world production. This ensures that each step in the making of such content is recorded and an authorized production will never get replicated.
While Bitcoins and blockchain appear to be resolving many age-old problems plaguing the entertainment and music industry, the technology is still evolving and mass adoption is not yet under way. Regulations have to be enforced to maximize the benefits blockchain technology can offer us. In a world marked by frictionless streaming micropayment options, producers can now reward users with Bitcoins in exchange for sharing or marketing their content.