Blockchain could be a trusted ledger as every action is transparent to everyone. In some creative industries, it can act as a platform for the intellectual property.
Many people have known of blockchain and how it works as a technology developed for the cryptocurrency Bitcoin. In terms of creative industries, it can help define one artist’s work to protect their intellectual property rights.
Recently, organizations and new intermediaries such as Youtube and Spotify have inserted themselves into the value chain between artists and audiences. As a result, artists receive less revenue from their work. In addition, their pieces of art are shared, advertised, priced. This problem can be tackled by blockchain.
There are five features of blockchain that can address these issues:
Feature 1: Enable smart contracts.
Blockchain can host “smart contracts” to ensure author’s digital rights and allocate revenue share to team that help creating the work.
Feature 2: Establish transparent peer-to-peer transactions.
As all of the transactions for creative work are transparent and accessible by all. This will allow the value of the product to be acknowledged.
Feature 3: Promote efficient and dynamic pricing
If blockchain serves as a platform, the demand for the artist’s work can be tracked, pricing would be more dynamic and controllable to the artist without going through web of intermediaries.
Feature 4: Allow “micrometering” or “micromonetizing”
By using blockchain, snippets – added info in form of code, text… could be made available for a certain cost. “This allow users to support content creator of their choice to reduce unwanted ads” said Mike Belshe- Cofounder of BitGo.
Feature 5: Establish a reputation system
Blockchain enables users and creator of creative content to verify one another, enhance the collaboration and behavior, collaboration not fulfilling the contract will be recorded.
In general, blockchain technology has a great potential to create a reliable accountability and transparency leading to efficiency for both artist and consumers.
