Entertainment Coin

Entertainment Blockchain

Background

The growth of the cryptocurrency market has accelerated in the past 10 years since the introduction of the Bitcoin network in 2009. The acceleration is particularly fueled by the emergence of blockchain-based ventures and projects, which cover a wide spectrum of products, from messaging apps, healthcare, to social causes and virtual identification. Right now, there are thousands of cryptocurrencies with a combined market value in the hundreds of billions, with the peak market cap at $830 billion on December 2017. In response, more and more investors have sprung up to support blockchain ventures and have begun to trade cryptocurrencies in the new token economy, including many heavyweights in the financial industry.

Among all of these cryptocurrencies, bitcoin stands out with over 50% of the market share, while new cryptocurrencies and Bitcoin derivatives are also continually pouring into the market. Regulated exchanges like CBOE and CME followed each other in listing bitcoin futures. Until the third quarter of 2017, investment return on cryptocurrencies is as high as 448% which has far exceeded investment returns on any conventional asset like the stocks, gold, commodities and real estates. Cryptocurrency trading has been very active with almost 60 cryptocurrencies boasting an average daily trading volume of 10 million dollars. Such active trading leads to more and more new crypto trading exchanges entering the market.

Currently, the crypto market is dominated by crypto to crypto spot trading and crypto to Fiat spot trading. However, as crypto market participator, we witness the impending needs of short selling, margin trading and token lending from professional traders as more and more first-class traders in the traditional financial market join in the crypto market. Exchanges such as OKex, Bitmetrex and BitFinex are amongst the biggest exchanges which provide functions of futures, margins and short selling. However, they are exposed to the risks of in-house clearing such as the failure of the exchange, fraud, price manipulation, technical down time and hacking.

The prosperity of Initial Coins Offering (ICO) in 2017 bred a speculative tendency amongst crypto investors, but the heat cooled down in the Q1 of 2018 as the market entered a bear market.  Despite of recent correction, we continue to see more and more blockchain entrepreneurs come up with feasible blockchain applications backed with financial resources and strategic partnerships. We foresee as more blockchain projects become applicable to everyday use, investors will diversify their portfolios from traditional stocks and bonds to crypto assets as established utility values provide for longterm stability.

 

Participants 

The Foundation is registered in US. Its mission is to develop the solution and promote its use among cryptocurrency exchanges in the entertainment world. The Foundation also manages the fund contributed by global investors. The foundation’s responsibilities include but are not limited to the following:

Wallet users whose identity have been certified can use various functions such as trading and asset delivery.

Provide cryptocurrency and derivatives trading services for wallet users. Counsel member of the clearing union. Provide a node on the clearing blockchain.

 

Entertainment problem

With the rise of the knowledge economy, intellectual property rights have become the core elements of market competitiveness. Users hope that their own content can be protected. However, in the current situation of the Internet, intellectual property rights infringement is serious. There are many problems such as the indiscriminate erosion of UGC original content copyright, weak administrative protection, and difficulty in accountability. These entertainment products also involve production, copying, circulation, and dissemination of various links, involving many stakeholders, and copyright maintenance is difficult.

 

Solution

After using the blockchain technology in the content area, the content creation information and the user information can be recorded through the timestamp and tamper-resistant features. With smart contracts, creators are rewarded for each use of content. On the one hand, it protects the rights of content creators. On the other hand, it can reduce or even remove service fees from middlemen, and it can better motivate content producers to produce more quality content.

 

Copyright Protection

In the area of blockchain application, the first is the creator level. Nowadays, one of the major problems faced by creators is the protection of the copyright of works. With the gradual emphasis on the copyright of works, the topic of copyright protection has been repeatedly mentioned. It is the copyright protection of music that is of concern to the general public, and music is also the cultural area that the blockchain first applied to.

For example, musicians or songwriters register their works on the blockchain network. It is possible to track the play and use of the work through blockchain records. In this way, when gains are made, they can more intuitively see the use of their work, and thus confirm the specific figures of their own income.

 

Creator income

The application is that the blockchain allows creators to decide who can use their contents.

For example, a musician uploads and registers his works on the blockchain network, and sets a limit that can be played only for playing 5A coins. Then the musician’s fans can only hear the music by converting their own currency to A coins. The artist can directly determine the selling price and be able to make adjustments any time according to users’ demands and gauge the market based on users’ feedbacks.

Among these, there is also a point worthy of attention, which is to reduce the existence of middlemen, musicians can increase their own income while allowing users to understand the value of works, but also improve their own income. In other words, blockchains provide direct copyright holders with better copyright management for independent musicians and may allow more and more musicians to choose not to sign up as independent studios.

 

Communication applications

If the blockchain’s copyright to the creator is static, it is moving at the communication level. Blockchain also has a great application in the transmission of video streaming media. At present, the transmission of video content still has the problems of low streaming media quality and high content transmission costs. Even YouTube, the world’s largest video platform, still faces such problems. By utilizing the characteristics of blockchain distributed data storage, video content can be distributed over decentralized peer-to-peer networks to solve this problem.

Nowadays, the transmission of video content basically depends on the help of the CDN (Content Delivery Network). The CDN can provide the backbone infrastructure for the transmission of video content and finally transmit the video stream to the terminal audience. However, there are two problems. One is the limited number of CDNs that can be provided lastingly and effectively, making it impossible for some economically underdeveloped regions to receive good quality video streams. Another problem is the high maintenance cost of the CDN. Whether renting or owning by the platform party, the high cost of content transmission will inevitably reduce the revenue generated by the content back to the creator.