Today, Blockchain appears to many as just another geeky technology, that is only used for Bitcoin. The public image, along with the complexity of cryptology, has limited the adoption in other industries. To counteract this stagnation, startups like Ethereum and Chain are stripping the Blockchain from Bitcoin and positioning it as a transversal technology that can be integrated across various industrial sectors. Blockchain’s underlying principles of the decentralization could bring back the original open and democratic values of the Internet and with it a profound change in user activity across the digital world.

Blockchain was originally created for the crypto-currency Bitcoin, where it acts as a database keeping track of all exchanges. Anybody who creates a Bitcoin wallet is automatically added to the ledger and any new transaction is added to the database, for everybody to see. The universal principle of the Blockchain is thus transparency. This is similar to the beginnings of the Internet which was inherently designed as a global conversation. Its precursor, ARPANET, was designed as a military communication network without any central points, resulting in an open and visible data network. In 1989, the introduction of the HTTP protocol, created by Tim Berners-Lee, enabled the connection between a client computer and a server. This server model became the basis of the modern Internet.

Notwithstanding this free-access approach, this model locks users into closed ecosystems. This paradox raises important questions about the relationship between artist and consumer. To a large degree, it is governed entirely by platforms like Netflix, that serves as a gatekeeper for content access. Distribution platforms like Netflix and other like it heavily rely on exclusive content licensing and original programming to offer consumer value. Their continual growth has further fragmented the converging media landscape, where users have to jump from one service to another to get all the content they want. This is where the Blockchain and its possibilities beyond finance really come into play.

At its core the Blockchain enables the creation of one single and verified database, as in a single movie library. This open database, conceptually, would allow services to be built around one single content database, so that users could seamlessly access one holistic library. By extension, they would be able to move from one service to another, while the service provider would be able to trace their viewing history and accordingly offer matching recommendations. The result is that the user experience is relevant to the user whatever platform he chooses to use.

Another Blockchain feature, called smart contracts, could optimize monetization and enable content creators to get paid proportionally to how many users consumed their content. In the music streaming economy, this might create an improved payment model, where artists, not the platform, are the direct sources of content and are recognized for what they have created.

Similarly, the colored coins feature would ensure the authenticity of any non-cryptographic assets, such as video or music content. Colored coins are marked digital assets and can be traced back to their origin. Revelator provides an instructive example here. The startup is working on a music rights API that will enable artists to access their listening data across different streaming platforms. One of the ways it’s doing that is integrating Blockchain with music files and anonymously logging user listens to the ledger, which artists can access through Revelator’s API giving them a more transparent data exchange.

These kinds of applications, built on top of the Blockchain, also set the stage for a peer-to-peer (P2P) based Internet, with users connecting to each other instead of connecting to large platforms. The business model behind this strategy emphasizes direct interaction between makers and consumers. For example, Thom Yorke released his latest album, Tomorrow’s Modern Boxes, as a BitTorrent exclusive, disintermediating music platforms and going directly to consumers. The P2P layer would further allow users to connect to each other in order to watch films and TV shows online, as a collective group, increasing file delivery speeds and avoiding ISP data caps. This could enable a fluid digital world in which users can easily move from one service to another, across devices. This form of cross-platform mobility would make users digital flaneurs, able to shift freely in search of content and experiences.

Distribution platforms that specialize in exclusive and original content to expand their reach stand to be disintermediated in a distributed network, where artists can connect directly to their consumers. To maintain relevance, players like Netflix or Hulu need to focus on creating a strong user experience, rather than focusing on limiting their content offering. Identifying how to provide support to a user, through recommendations, and solving friction will create value. The future content offering may likely be a transaction between creator and consumer.

18 Hubs is the innovation research facility of Havas Media. We routinely work with makers, industry insiders, and academic experts to track new trends in the converging media, content, technology, and data science industries. Street credibility is key as we incubate new solutions, startups, and business models to drive a culture of innovation across rapidly evolving verticals. Check out our research papers and strategic notes at our website.

See everything we do on our website at 18hubs.io and follow us on social