If you are an otherwise tech-savvy individual, you have probably already heard about the popular blockchain technology. However, if you haven’t, then let us tell you a little about it. In this article we discuss How Can The Creative Industry Benefit from Blockchain?
Blockchain, in essence, is a programmable, shared, and cryptographically secure module that can be inspected and evaluated by anyone. However, as a regular user, you will not be able to control the system in any manner.
Let’s take the bitcoin prime system as an example. It’s a blockchain-based platform where you can trade or inspect bitcoin-related trends whenever you want to. However, you will not be able to control its working procedure, as it is operated through an automated trading robot.
Due to its security and unparalleled operability, blockchain technology is being used extensively in the market.
But, how is it going to be beneficial for the creative industry?
Let’s find out.
Table of Contents
The Benefits of Blockchain for the Artistic Industry
Blockchain technology, if used correctly, can be advantageous in several ways, especially for artistic people. Here’s what you need to know about it.
Benefit – 1: Promoting Dynamic Pricing
Through the negative usages of technology, the price of creative content can be changed. It will affect the artist in terms of generating revenue and gaining the recognition they deserve.
However, with the usage of blockchain technology, it will be almost impossible for anyone to make any modifications anywhere. Besides, you will also be able to set prices accordingly without having to go through various intermediaries.
Benefit – 2: Creating Smart Contracts
With blockchain, you can create smart contracts to help everyone manage the digital rights of their content. Besides, it will be easier for you to allocate shares of the overall revenue to all of your contributors quicker than usual.
Besides, you can also design a royalty ecosystem within your artistic endeavor. It’ll help you make the creative process even easier and offer fairer terms to everyone automatically.
But, how will the system work?
Well, the technology will attach an intelligent contract to all of your artistic endeavors equally. Now, whenever someone buys anything from your collection, the payment will be divided and sent to everyone according to the contract.
Benefit – 3: Enabling Micromonetizing
Digital stores, such as iTunes and Amazon Music, only allow you to purchase individual tracks. Micromanaging and micromonetizing are not possible in this regard.
Nonetheless, this scenario can be changed entirely with the usage of blockchain technology. By integrating it into your system, you will be able to monetize the snippets of your music.
For example, someone can buy and use a few seconds of your song in the movie trailer. It will be much more manageable and help you generate revenue quickly.
Benefit – 4: Transparent Transactions
As mentioned before, no one can modify the core of blockchain technology. Therefore, it will be impossible for everyone to change the course of transactions.
Besides, blockchain will also make the procedure even more transparent by attributing the ownership of the work securely. There will be a cryptographic ID on every product, verified by the technology, of course.
Due to this reason, the ownership of the content will only be changed if you have bought it by paying the right price.
Challenges Raised by Blockchain in the Artistic Industry
Like the positives, blockchain technology has various opposing sides to it too. Here’s what you need to know about it.
- Promoting an artist through blockchain can be pretty challenging, at least during this stage of advancement. Therefore, you may have to hire a traditional agent for this purpose instead of force automating the system.
- The current level of technology will prevent you from putting your content directly upon blockchain. Besides, storing the metadata of the same will be pretty challenging depending on how you want to serve it.
- If you are choosing a private blockchain for your purpose, you may encounter governance issues to some extent. In some cases, the problems regarding permission rights can also become a little too problematic.
Blockchain, in essence, holds immense potential when it comes to offering more transactional efficiency to artists. However, the problem is that the technology is yet to be refined. Thus, if you aren’t careful, you may experience moderate to major issues during the revenue-division procedure.
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