BLOCKCHAIN BENEFITS FOR CREATIVES
- 2 mins
Blockchains include blocks linked together into chains. Each chain consists of encrypted data, as new data comes in, it goes into a fresh block. Once the block is filled with data it is chained onto the previous block, which makes a chronological chain of data.
Tying decentralization in with a technology that makes data unreadable ensures the validity and integrity of data history, and also prevents data manipulation, creating a new disruptive, secure technology poised to change industries worldwide.
Businesses looking at blockchain implementations, identify transaction-specific information and place that data inside the blocks which make up the blockchain related to their needs.
For instance, a block created by a bank may include names, account numbers, transaction types, and other pieces of information. For the creative industry, blockchain data may include licenses, trademarks, serial numbers, date purchased, creator’s location, etc.
For creatives, blockchain can reclassify how specialists are compensated by going about as a platform for makers of protected innovation to get an incentive for their work.
For example, streaming platforms progressively embed themselves into the value chain amongst creatives and their audience, pay the creatives little dividend and give them less say over how their imaginative works are publicly consumed.
A perfect example is YouTube, your creative work has to reach a certain number of streams for you to earn your first penny.
For creatives who want to embrace blockchain technology, consider the following advantages of the system;
- Smart contracts; These are agreements that are automatically executed once the conditions are met. This means there is no need for a third party, like a bank, a broker, or a government.
This can enable creatives to manage advanced rights and allocate revenue shares to those who were involved in their creative process.
Such smart contracts can replace regular contracts, which are often elusive and abandons many a creative with little control over the terms for publicizing their creative works.
- Transparency; All transactions for creative work can be seen and validated, including who owns the creative work in question, who bought or rented it in part or full, when they did so, and how much revenue the work is generating in real-time.
This will allow stakeholders to have a better sense of the overall value of the creative work that is being produced, all in the form of a digital ledger provided in the blockchain.
- Efficient Pricing; Since the blockchain can provide records of who has been granted access rights to certain creative works, these analytics can be used to price creative works constantly.
More important, creators will have a stronger voice in the pricing & public consumption and could, therefore, provide discounts on their works at certain times.
- micro metering; With blockchain, snippets of creative works could be made available at a price, for example, a few seconds of a song can be purchased for use as a ringtone or as a theme song for an ad.
The blockchain records the precise components of the creative work that were used, thus defining the smallest unit of creative content.
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