Blockchain literally has the undeniable potential to become a powerfully disruptive force across different spheres of important human activity, and the creative industry has great prospects under this new technology.
It is a shared programmable, cryptographically secure and therefore trusted ledger in which no single user controls nor can definitely be inspected by anyone” – Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. Schwab gave this summary in his book on the Fourth Industrial Revolution. A survey of over 600 executives predicts or suggests 58 percent of global GDP will be stored using Blockchain Technology.
Blockchain functions as a digitized distributed ledger, providing a perfect audit trail of all goods and transactions on the framework. It has the direct application for individual content, which can be time stamped and stored with a unique identification.
Once an information is saved, it is immutable, unlike most pieces of digital content that, once downloaded, can be modified, mashed up and used for a whole lot of other purposes. Blockchain technology creates a number of significant opportunities for the creative industry.
Blockchain in its full potential offers increased control, allowing and giving creators the right to set parameters for licensing and pricing of their works. Concerning ownership, blockchain can improve the process of attribution, making it possible for creators to receive full credit for their work with ownership details stored in the distributed database.
This helps to provide a single source of evidence for licensing and payment. A large number of persons or parties could receive royalty payments from each other without knowing themselves. For smart, transparent payments and licensing, blockchain can automate royalty payments giving or increasing trust amongst persons in the creative industry.
Exzie is taking advantage of blockchain technology to help creators get royalty advance for their work, by leasing their copyright at an agreed price to investors and entertainment executives who also earn royalties during the lease period.
Blockchain in the creative industry will encourage dynamic business models, with consumption data used to benefit creators rather than intermediaries. The new technology has the promise of simplifying much of the complexities around ownership rights, smart contracts, transparency, control and acceptance of business innovation in the creative industry.