How do ICO/IEOs really work? Learn the inside story from real world blockchain (DLT) experienced experts Part 2 — How Livetree uses blockchain technology
Livetree uses Distributed Ledger Technology (otherwise known as blockchain technology) in 3 ways.
Firstly, for trust in your data usage and subsequent fair royalties. Secondly, in tokenisation and validation of content, and lastly for a new type of financial debt instrument to support the film/TV world.
Trust in your data usage and subsequent fair royalties
We are a streaming platform. When we show a film or TV programme we have to pay royalties to the content provider. We currently have 30+ content providers (and you can be one too if you upload your story). When that content is watched, some of the subscription revenues are allocated to the content provider. This means that the content provider has to trust that we are counting the views, pauses, and replays correctly. We have created a way of tracking those views using the blockchain. This provides transparency to the content provider and a way to audit royalty payments. This data protocol provides not only trust in royalties for viewing content, but we have designed it in a way to fundamentally restructure how we use the web.
Think about your data for a moment. Right now, companies like Facebook take your data and use it to create advertising profiles which they sell. Imagine if instead of having to agree to Facebook’s T&Cs, it was the other way round. Companies have to agree to your T&Cs and you have full audit of how your data is being used. More on that in our Data Heist blog coming soon.
Tokenisation
Livetree started as a crowdfunding platform (see our blog on our origins coming soon). Imagine if the crowd could take a stake in a film. They could get paid all the way through to royalties and also be able to trade it at any point to any one of the 18 decimal places. This is something we have been working on for a number of years and will be announcing with the right projects at the right time.
Hollywood Defi Instrument
Defi, or decentralised financial instrument, has become popular since the rise of projects such as MakerDAO, SALT and Blockfi who provide collateralised lending instruments. For investors it provides a tax efficient loan facility that provides exposure to the streaming platform’s revenue and the underlying crypto-currency price (initially only Ethereum but to be extended to Bitcoin, Litecoin and so on). It provides immediate liquidity against crypto-currencies (ETH, BTC etc), and the potential to earn interest from sub-lending the collateral. More announcements on this later.
