Cryptocurrencies have been making a massive impact across all business areas, from the financial sector to retail and manufacturing. One field in which they are expected to have a significant influence is entertainment. Although the take-up of cryptocurrency and blockchain technology in the entertainment industry is just beginning, the degree to which they are likely to become embedded and affect sweeping, sector-wide changes is potentially profound.
The arrival of blockchain
Blockchain technology isn’t the same thing as cryptocurrency, but when one is trending, the other usually isn’t far behind. This is why the increasing adoption of blockchain in the entertainment world opens the door for further use of cryptocurrencies in the future.
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Blockchain technology provides a secure, decentralized platform for all kinds of transactions, including the transfer of cryptocurrencies. Stored across a network of computers, blockchain creates an incorruptible and unchangeable record of every stage of a transaction, and this timeline is available to all parties. This increased transparency is one of its main advantages and why it appeals to the entertainment industry so much.
Smart contracts
The entertainment sector is built on complex deals between creators and producers, distributors and crew, facilitating intellectual property rights, financial payments, and other responsibilities. Disputes over these contracts are a huge drain of time, energy, and money within the industry. Using blockchain to facilitate transparent smart contracts would cut out a vast amount of red tape and be to the advantage of all concerned.
Once transparent smart contracts are in place, it makes sense to make payments using cryptocurrency. The nature of crypto makes regular microtransactions easier, facilitating faster and more accurate royalty payments. It’s also easier to reduce copyright infringement and monetize creative assets.
Secure payments
One area in which the entertainment sector is already enthusiastically adopting cryptocurrency is consumer payments. As a safe, reliable, and fast way to make payments online, cryptocurrencies are already widely used in gaming, for instance, at a crypto casino. With the whole entertainment field rapidly moving online, crypto is an easy, secure global payment system that provides equal access for all.
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Direct funding
No Time To Die, the recent blockbuster movie that was the twenty-fifth film in the James Bond franchise, was the first major Hollywood project financed via cryptocurrency. Its success will undoubtedly encourage other studios and producers to adopt this approach. Early in 2021, the MGM film studio announced a partnership with the blockchain firm Eluvio, and more arrangements of this kind are expected to revolutionize the way Hollywood does business.
Level playing field
Cryptocurrency funding also gives independent film-makers easier access to funding and startup money. From professional investors to crowdfunding platforms, the use of crypto reduces risk thanks to the increased transparency of the process.
More people will be encouraged to put money in if they know exactly where it is at all times. Meanwhile, the rise of blockchain-facilitated NFTs makes it easier to invest directly in a piece of art.
Expert insiders expect the impact of cryptocurrency on entertainment to be similar in scale to that of the internet. The worlds of film, music, gaming, and more could be about to be changed forever.
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