How the Entertainment Industry Benefits from Peer-to-Peer Processes
Satoshi Nakamoto presented the first blockchain application to the world in 2008 in the form of the cryptocurrency Bitcoin. The network supports peer-to-peer transactions that are not controlled by a single, central server. Instead, every transaction is verified across a network of thousands of servers called nodes and recorded on a public ledger. The security and immutability of the transactions combined with the decentralized nature of blockchain immediately showed relevance across all areas of business and service operations.
The entertainment industry stands to benefit from the use of blockchain in ways that enhance every phase of the filmmaking process. Peer-to-peer networks and decentralized nodes make it possible for creators, fans and investors to interact and transact directly with each other. The structure of the blockchain makes every transaction transparent while protecting personal data and agreements. This streamlined environment opens the door to fresh ideas and greater access for everyone.
Decentralized Networks and Peer-to-Peer Transactions
In a centralized network where servers are siloed, all data is stored in one data-center. This structure makes data vulnerable to hacking, tampering and deletion because hackers would only need to breach one server to access all data stored in that location. Once cybercriminals have decoded a password, the entire system could be under threat.
Doing business in a centralized system is especially risky in the entertainment industry where creators must share their intellectual property, sometimes amounting to their life’s work, and investors must share personal identification information, such as bank account info. If hackers can target a single, vulnerable point to delete or change entire systems, concerns about the security of the process itself arise.
Creators and investors both have their own systems in place to protect their documents and contracts, but these measures are often costly and outdated. The extra expense, effort and inherent time-lag result in more barriers for independent creators who must go through third parties to attempt to find financing or production assistance.
Blockchain solves the issue of security with its decentralized network, consisting of thousands of server nodes. These nodes work together to verify every transaction on the network. Once the transaction is confirmed, it enters a block of data on the chain. Each block has its own identifying hash, which is tied to every block before it and every block after it. To change any of the data in a block, every hash after that block must also change. This would require the consensus of more than half of the servers on the node. As long as two nodes are operable, no data can be deleted or altered.
In addition to solving the security problems associated with a central network by using decentralized nodes to validate transactions, blockchain’s peer-to-peer capability removes the barriers associated with intermediaries. With blockchain, investors and creators can connect directly instead of working through several middlemen and layers and points of contention. Any involved party would not need banks or authorizing agents involved to make agreements or exchange assets.
The structure that blockchain provides eliminates most of the friction in getting a production off the ground. Creators protect their property and start getting funding right away. They can immediately work on building an audience no matter where they are in the process, from conception to production. This helps their project gain traction, leading to an even bigger audience and more access to direct funding.
Directly Connecting Creators with Investors and Fans
Not only does Filmio simplify the connection between creators and investors, the Filmio Decentralized Platform (FDP) also strengthens the relationship between creators and fans. On Filmio, fans are encouraged and rewarded for engaging with their favorite projects. Through blockchain, we have created a gamified system that gives fans tokens when they rate content or offer feedback, and these tokens can be used to purchase exclusive content or presale tickets to the release of a finished product.
The ecosystem that Filmio creates gives investors the metrics they need to make sound investment decisions about funding a project. The more engagement a creator’s content gets, the higher it climbs in rankings, called the ‘GO Score.’ Once the GO Score reaches a certain threshold, the content is entered into the GreenLight Competition, where it is matched with investors who are looking to fund projects. If investors are interested, they contact the creator to make an offer; all contracts are signed and protected by the decentralized network, and all transactions take place peer-to-peer.
The innovation that Filmio brings to the entertainment industry changes the course of the industry itself. It makes the entire production process more accessible to everyone who has something to contribute, and it brings fans into the mix as well. With Filmio, creation is no longer just for people with connections, creation is connection.
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