These days, it seems, Blockchain is making its way into most
industries. Every other day, a new blockchain project is announced, usually
trying to give the technology yet another novel use. While many of these
enterprises are doomed to fail, others surely won’t. In a few years, many
markets would have been transformed by the immutable ledger.
One of the markets where there are still very few blockchain
proposals, yet where it could help the most, is entertainment. Once the private
playground of a few executives who acted as gatekeepers, this industry has
slowly been opening up over the last two decades.
Blockchain, as it happens, could be the technology to finally
make it change for good. There are several so far proposed uses that are worth
distribution of earnings
This is the biggest one. It’s also likely the reason why the
industry so far isn’t looking into blockchain. And the reason why it is likely
to fight any blockchain initiative harder than they the Netflix (which it
In essence, with the blockchain revolution;
actors, singers, and all kinds of content creators can be sure they’re not
being robbed. In an industry known for its creative accounting, it would be
expected for those in suits to dismiss any initiatives towards transparency.
After all, the status quo in Hollywood is that it is a handful of people make lots of money with the work of many people. The excuse is that they have the money to make it happen, which is true. But this select class has the money to make it happen on the backs of fraud and cooking the books.
Did you know, for example, that according to Warner Brothers
“Harry Potter and the Order of the Phoenix” was a complete financial failure?
That didn’t keep them from making three more films in the franchise, though. It
also hasn’t made them go bankrupt for some reason.
Bringing an end to creative accounting by having immutable, public ledgers is the great idea that’s unlikely to happen. Transparency would kill the entertainment industry as we know it, for it is built upon embezzling and misreporting.
Were this to happen, though, it would affect more than just
those working in Hollywood. Plenty of websites operate in semi-open ways today,
allowing for user-created content. YouTube has made a fortune with it, for
example. Sam story with Soundcloud.
However, content creators are often faced with their earnings
being too low. While some content creators indeed expect too much, it’s often
difficult to know whether a site is misreporting sales or views. There’s no way
to audit the industry’s data.
Which leads us to another feature that will drive blockchain adoption.
All we know about a product’s audience comes from the ones in
charge of the product. This means that, when certain data isn’t convenient,
they can withhold it or outright lie about it. And there’s no way to know if
For decades, the TV business depended on Nielsen to know about ratings.
This at least gave an estimate of ratings that couldn’t be manipulated by TV
stations. Just as well, cinemas depended on box office scores, and the music
industry on album sales.
That’s not the case today.
Streaming and digital media have brought amazingly convenient
ways to consume our media. We can access it when we want, where we want, and
just with one click.
We also have no way to know how many people are watching, or
listening to, what. Even content creators can’t know for sure. They receive
monthly reports, but there’s no way to audit them – which means stores can
quite easily cook the books and leave no trace.
On top of that, digital sales and distribution contracts
often shortchange the artists, even when they’re the ones who drive sales.
Taylor Swift went on a crusade against Spotify
over royalties. Jay-Z bought Tidal to try and shape it to be fairer. On the TV
front, Netflix hides viewing numbers for its shows even from its own creators.
The absurdly secretive company, it can be argued, does this so it gains more
leverage when renegotiating contracts.
In other words, it’s not a transparent industry. These are
the cases of high-profile people being hit by this, smaller content creators
could well be hit much worse. It’s also impossible to know if YouTube tells the
truth with its views count, for example.
Blockchain could put an end to all this. With an immutable
ledger, proper viewing and download counters could be a reality. Since this
info would be public (and why couldn’t it be?) content creators would have no
reasons to doubt numbers. We would know the truth about the market at all
times. It could even be used to track the cost and earnings of media, so that
creative accounting is kept at bay.
Of course, that’s precisely why it isn’t likely to happen.
Transparency is too much for an industry built in obscurity. An industry that,
also, often uses this obscurity to justify absurd or unfair decisions.
copyright and automatically distributing royalties
This is one front where we might actually see some movement.
In an industry that somehow prides itself for ridiculous copyright length, it
can be very difficult to know who owns what in a few decades after the fact.
Companies are bought or go bankrupt, creators die, and often, genuine info on
who owns copyright is lost.
By using smart contracts on blockchain,
that could be eliminated. There would be no need to know who owns what, since
royalty fees would be automatically charged and distributed. Whenever the
rights over a product changed hands, the smart contract would be immediately
This is important, because there are lots of media in limbo
due to unknown copyright owners. In video games, for example, it’s a sadly common situation.
It’s not as common in music or media, thanks to the tight control by
corporations on the market, but it still does happen. Securing the rights to a
song can at times be extremely difficult.
By having fees for rights that are automatically awarded and
distributed, we could skip this. We’d just have to point out what we’re using,
and the blockchain would take over. Moreover, we could actively know when
copyrights expire – and once those dates arrive, the blockchain would mark such
media as free.
upgrades that are unlikely
As mentioned before, most of these uses are unlikely to ever
happen. It would take a major blockchain technology investment
by a new player with money to make a change in the industry. We would require a
company with means to transform the market in the way Netflix did a decade ago.
However, not all is lost. While the chance of Netflix ever
releasing proper viewership numbers or Spotify allowing us to audit its numbers
is low, blockchain could well make a difference. And it’s quite likely we’ll
see blockchain-based media distributors, even they’re mostly independent ones.
The issue with Hollywood, of course, is that it’s set on its
ways. It took a long while to allow streaming. An even longer while to assure
that TV could have the same, or even better, quality than film. Many still argue those two
Still, we can only hope that blockchain adoption in the entertainment industry occurs soon enough. We can only hope whenever it does, it does so in a massively disruptive way that forces the whole industry to change for the better.
About Stevan Mcgrath,
Stevan Mcgrath, is a Bitcoin and cryptocurrency enthusiast, passionate about the potential these tools and blockchain technology bring to the world and writes consistently for CoinReview. He has been following the development of blockchain for several years. To know his work and more details you can follow him on Twitter, Linkedin.
Binance Might Delist Many Low-Volume Coins Soon, CZ Hints
Binance is the world’s largest cryptocurrency exchange by means of daily trading volumes. In the few short years since its launch, the venue went on to become a leading company in the industry.
In fact, launching coins up for trade on the exchange has created the so-called “Binance Effect.” In short, when a cryptocurrency is selected and launched for trading on the platform, its price usually undergoes a substantial surge.
Now, the CEO of Binance, Changpeng Zhao, has hinted that it may start delisting low-volume coins.
Low-Volume Coins May Kiss Binance Goodbye
In an interesting Twitter thread, a popular cryptocurrency analyst and trader RookieXBT suggested delisting all coins on Binance that “do less than 10 BTC of daily volume.”
Expectedly or not, the CEO of the exchange engaged in the thread, providing a hint that they might consider doing so.
“I think it is a good idea. If you are on Binance and still have no volume, then…” – Said CZ, perhaps hinting that there’s something inherently wrong with coins listed on Binance and failing to generate big daily volume.
Naturally, there are two sides to this debate. Some users think that the merits of a coin shouldn’t be valued based on the volumes it generates on cryptocurrency exchanges. People argue that they hold a coin for the long-term and don’t really care about the daily volume.
This is most definitely true. The inherent merits of a cryptocurrency are most definitely not associated with it being listed on a certain exchange, be it Binance. So, a logical question pops – why would someone care if the coin is listed or not, presuming they are “in it for the technology”? And this is where things take a twist.
The Other Side of the Story
At this point, it becomes rather clear that this particular narrative doesn’t stand on solid ground because people are obviously concerned about the price, perhaps even more so than the technology itself.
If an investor is holding a cryptocurrency for the long run, it being listed on Binance shouldn’t make a difference. But that’s usually not the case – people are rarely “in it for the technology” despite what they might claim.
The main concern is that if Binance decides to delist low-volume cryptocurrencies en-masse, this might cause a larger upset in the market because of the “Binance Effect.”
As we mentioned before, when a cryptocurrency is listed on Binance, it usually goes through a substantial increase. However, the opposite is also true. Last year, the exchange delisted Bitcoin SV, and it tanked more than 10% on the news. That’s just one example.
In any case, there’s no formal confirmation, and it remains interesting to see whether the exchange will really start delisting coins based on low volumes.
Featured image courtesy of Medium
Fidelity’s Crypto Subsidiary Targets Asian Investors To Buy Bitcoin
- Fidelity Digital Asset Services (FDAS) has partnered with Stack Funds to enable Asian investors to purchase and store cryptocurrency assets more freely and securely.
- Based in Singapore, Stack Funds is a regulated fund manager focusing on Bitcoin and other digital assets.
- According to the Bloomberg report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. The company outlined that the Asian market has been continuously growing in demand towards the cryptocurrency industry, especially from high-net-worth investors and family offices.
- Stack further explained that all assets under its management will be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.
- Stack’s co-founder, Michael Collett, said that Fidelity’s involvement will enable its company to attract even more investors from the region.
- On the other hand, Christopher Tyrer, head of Fidelity Digital Assets Europe, believes that “there’s a critical need for platforms which have a deep understanding of what local and regional investors are looking for.” However, he admitted that the digital asset space has “historically lacked” such platforms.
- After its success in the US, Fidelity Digital Assets expanded its cryptocurrency services to Europe last year. The company aims at entering the Asian market as well now with the Stack Funds partnership.
Hacked? Crypto Lending Platform Cred Suspends Deposits And Withdrawals While Cooperating With Authorities
The popular cryptocurrency lending service Cred has announced that it has temporarily suspended all funds inflows and outflows. Without disclosing many details, the platform said it’s cooperating with law enforcement authorities to investigate an incident.
Cred Suspends Deposits And Withdrawals
The United States-based crypto lending platform, which recently announced joining Visa’s fast track program, updated its customers on Twitter regarding the latest troubling developments with a brief message.
“Unfortunately, we are unable to comment further at this time, but we will undertake to provide an update within the next two weeks. During this period, all inflows and outflows of funds will be suspended.” – read the statement.
Staying true to its fashion, the cryptocurrency community lashed out at Cred and its lack of details about what’s going on. This reaction prompted the lending protocol to comment once again. Firstly, Cred apologized for the concerns and inconveniences it has caused while it’s assessing the “business impact connected with a recent fraudulent incident.”
Furthermore, the post explained that Cred is currently cooperating with law enforcement authorities. However, it provided some reassurances claiming that “no client personal data or account information was compromised.”
It’s worth noting that Cred’s website reads that the platform works with “trusted security and insurance providers Fireblocks and Lockton to ensure that our customers’ digital assets have enterprise-grade security.” Nevertheless, several community members have questioned the state of their holdings on the platform, as they weren’t satisfied with Cred’s brief updates.
A Dissolved Partnership Saw This Coming?
Although it’s still unconfirmed if the so-called “incident” is indeed a hack, it seems that the issues have been transpiring for a while now. Days before Cred suspended deposits and withdrawals, one of its partners ended its relationship with the lending protocol.
The cryptocurrency wallet and trading platform, Uphold, announced on Sunday that users could no longer link their Uphold wallets to the third-party crypto lending provider Cred.
At the time of this writing, neither Uphold nor Cred have disclosed why their partnership agreement ended.
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