The blockchain is a global, open-source, peer-to-peer database that cannot be hacked or controlled by any one central authority. It is said to be a key infrastructure of the next wave of the Internet Web 3.0 that will enable more peer-to-peer interactions. Here is a good explanation from Reuters. If you want more detail Dug Campbell did a really good job here.
Why does this matter for entertainment and content creators? We are leveraging blockchain in 3 ways:
- Protecting Creator Rights - once you record your content rights on blockchain the record cannot be erased. Blockchain is immutable meaning the record stays forever, for as long as the Internet exists and regardless of whether or not BlockPunk exists or not. A bit like Ajin :) Each piece of content traded on BlockPunk comes with a digital certificate of authenticity linked to the blockchain record.
- More Efficient Payments - if you use digital money or crypto currency as a payment method then transaction costs are lower, payment is truly global, and settlement is quicker. Everyone who is entitled to a revenue share can get paid the very moment a customer buys your content by automating the payment in software called smart contracts. This is a complete game-changer compared to existing payment methods using credit cards for example and existing digital content distribution platforms who wait at least 1 month to payout to creators. You can see why Facebook is developing their own crypto currency ;) We still support payments by old-school credit cards since that is what everyone in the world has, but we also support payment using Ether and will look to support Libra when its ready.
- Creating Scarce Digital Content - by recording on blockchain, creators can 'mint' limited quantities of digital tokens attached to your content. This creates scarcity for digital content. In turn the scarcity becomes an important factor in the collectability and value of the content for fans.