Blockchain technology is the newest trend in the IT world. Everyone is talking about it, trying to find its application in different industries and gather the benefits.

But, what is blockchain? How it all started?

Blockchain is a database that is securely stored and updated by members of P2P network.

Blockchain is a method of implementing a decentralized database which can be continually updated but never directly edited by any sole participant or user. It has been securely used as the foundation of cryptocurrency. So, the first example of blockchain is the Bitcoin blockchain which was described by Satoshi Nakamoto in 2008. The purpose of the Bitcoin blockchain is to manage Bitcoin cryptocurrency, which is a digital currency that used cryptography for security.  The Bitcoin peer network is an unstructured P2P network run by all nodes.

Blockchain and content delivery

When companies deal with content delivery, usually security is managed by using tokens and DRM tools. They depend on centralized database, which relies on viewers that are being subscribed to the bouquets. This is opposite of the Blockchain technology, which uses, as mentioned above, decentralized database in a private network. In fact this leads, to a situation where tokens and DRM could be the first to disappear.

Blockchain leads to disintermediation of some stakeholders in the relationship between the Content owners and the viewers. Frictionless monetization of content will be enabled, to better compete with pirates. There will be a seamless match between the legal users with the legally purchased content. So even, if piracy exist (which is true), blockchain protects the whole network, because the hackers can only affect one node and not affect the functionality of the whole network. The system is entirely self – sustained, thanks to the decentralized hosting and encryption.

The use of “smart contracts”

Blockchain can play an important role in expanding the role of such services in the future, especially in the field of VoD, through the use of “smart contracts”. These are enabled by etherium, two parties agree to the terms which is then recorded as code on the blockchain. When a triggering event occurs, such as an expiration date or licensing request, the contract automatically executes the obligations according to the coded terms. Operators, content creators and copyrighters can be paid near instantaneously when their license work is used.

Does this mean that you will not be able to BitTorent the new Star Wars?

Someone, somewhere will find a copy of the movie without any DRM or blockchain security; even if they need to copy it with videocamera. It takes only one copy to be on the torrent network, so the whole world can watch it freely.

But softwares, can be made not to work at all without containing security (DRM, key, token…), so the future is ours to see in which direction we will all be going…

Stay tuned.