How blockchain could kill
both cable and Netflix

Blockchain technology, powered by nodes of peer-to-peer computers

around the world, is on the rise. So can we expect decentralized entertainment applications built on blockchain to replace streaming services like Netflix or Amazon and be the final death knell for Cable? Video production studios have already seen a lot of disruption recently. Websites like Youtube and Twitch have created a mass market for user-generated content, stripping the cable networks and studios from their positions as the sole creators of mass-market video content. Yet, despite the rise of these mega-websites, most high quality scripted entertainment content today, still comes via a largely centralized model. Studios and networks (now expanded to include streamers Netflix and Amazon) fund the development of content, and the content follows an orderly approach to distribution – from the studio to the end user along one of the pre-defined channels: cable or broadcast or mobile device or website.

Blockchain has the power to fundamentally disrupt the entertainment industry because it brings out a completely new, decentralized model for content distribution. In a blockchain, computers all over the world act together in a peer-to-peer network to work on some task — there is no central server or authority. Today Netflix and Cable still rely on the idea of “centralized” aggregation and distribution. Content creators must get past some number of “gatekeepers” and strike business deals with the network, which then puts the content on a server and distributes it over the air, via coaxial, or more recently, over the internet directly using CDNs (Content Delivery Networks like Akamai or Amazon CloudFront). Decisions about what content is offered, when it’s offered, the price, and the distribution route are still very proprietary and hierarchical.

In a decentralized world, no single website or authority would have a say over what content is to be distributed and how it will reach the “last mile.” No website would be able to block specific content. With decentralized apps (Dapps) for entertainment, whether it’s for live streaming or on-demand video, thousands of computers around the world would act as broadcasters in a mesh network that is not hierarchical. These “super nodes” would solve the last mile problem by broadcasting the signal to computers that are geographically nearby. This will be particularly effective in countries that don’t have lots of presence from existing CDNs.

A number of new crypto projects have cropped up that use either existing blockchains or completely new blockchains as infrastructure for decentralized video streaming. Some of these are optimized for ingesting and compressing content to make it available, such as LivePeer, built on the Steem blockchain, and Viuly, built on Ethereum. Some are application level tokens for streamers and influencers, such as Stream Token and YouNow/PROPS, both on Ethereum. Spectiv VR is focused on the advertising model and making sure content creators get a larger part of it, particularly for VR content. And LBRY and my company, Theta Labs, are building new blockchains/protocols to support third-party DApps for entertainment, esports, and more. Not only could these blockchain projects completely disrupt the distribution world because they no longer require centralized architectures, they can also disrupt the Netflixes of the world and make the idea of channels on cable completely obsolete. What is a channel but an aggregation of curated content over a well-defined distribution network?

Here are a few ways that a fully decentralized blockchain based entertainment network might disrupt the industry:

• Free Up Content Creators. Content creators could create shows and make them available over a decentralized platform instantly – no need to go pitch a studio or try to get Netflix to put you on their system. No more gatekeepers that have to approve your content.
• New Channels. New “channels” could emerge in a completely decentralized way. You could envision channels for esports, live events, fantasy, sci fi, news, etc. These channels could be set up by anyone and joined by content creators.
• Advertising and Free Content. Free content could even disrupt the traditional TV advertising model (which sites like YouTube are also following) by using tokens on these networks. The new blockchain video projects usually provide coins or tokens that advertisers can use to buy exposure on these decentralized channels. They can specify that those coins go directly to the content creator without having to a middleman take a big chunk of the revenue — a large departure from existing practices where the middleman gets the biggest chunk.
• Paid Content. As for paid entertainment or the subscription model, viewers could use the new tokens issued by decentralized content networks to subscribe to particular channels or to pay a particular content creator. This could replace cable on-demand and give viewers unlimited choice of what can be seen “on-demand.” HBO and other subscription networks recently released their own apps so you don’t need a cable subscription to watch them. The next HBO may be a completely decentralized network that is not tied to cable at all!

Conclusion: Watch out.

Technology changes have always impacted the entertainment industry. While the internet has created new ways to consume content, the creation and distribution of high quality shows has, for the most part, still been dominated by a small number of players, studios, TV networks, cable providers, and aggregators like Netflix. This hasn’t led to the democratization of content that was the promise of the internet.

Blockchain technology has the ability to fundamentally disrupt the entertainment industry by breaking that pseudo monopoly, replacing the centralized gate-keepers with a peer-to-peer network. Many of these projects will be going live towards the end of this year, and we can expect to see rapid growth of the new players in 2019 and 2020. Just as it took Netflix a number of years to displace Blockbuster and video rental stores as the dominant way to consume on-demand entertainment, it may take a number of years before the new decentralized approach becomes the dominant trend. Look to the 2020s to be the decade of blockchain in entertainment.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
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David https://markethive.com/david-ogden

Bank-based blockchain projects
are going to transform the financial services industry

Cryptocurrencies are constantly evolving,

with popular currencies such as Bitcoin and Ethereum maintaining their popularity despite recent market corrections. At the core of both technologies is the cryptographically secure digital ledger known as the blockchain. It’s a digital ledger where cryptocurrency transactions are recorded chronologically and publicly. Indeed, as the popularity of cryptocurrencies has grown, so has the banking industry’s interest in blockchain for fintech, with an increased and focused push on bank-backed blockchain projects. Some of the largest projects underway include the IBM-backed Hyperledger Fabric project, the Utility Settlement Coin, and R3’s blockchain consortium, signifying a growing acceptance in institutional policy to support blockchain growth

How does it work?

Currently, banks transact with each other by creating agreements, as one would when purchasing an item from a store. A common example would be a bank agreeing to purchase a specific amount of stock for a specific cash price from another. This process, often cumbersome and slow, takes up to several days and incurs the risk that one party may default or renege on the agreement. This period of time, known as settlement, is such an issue that an Oliver Wyman report identified it as costing the financial industry anywhere from $65-$80 billion a year.

Blockchain projects have the potential to reduce, and possibly eliminate, settlement times due to their digital nature, ensuring the timely and secure processing of these operations. Other uses for bank-backed blockchain projects would include secured global currency exchange rate speeds and increased transaction security, among other benefits, eventually allowing for an overhaul of the banking industry, replacing traditional back-office clearinghouses and other outdated mediums that exist between asset sellers and buyers.

IBM’s Hyperledger Fabric

The IBM-backed Hyperledger Fabric project is a trade finance platform aimed at international payments utilizing blockchain, with seven of its largest supporters including Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit. IBM’s blockchain platform will run through the IBM Cloud, allowing for interconnectivity between all parties in a particular secure transaction. This project is designed to be highly scalable, allowing for multiple entrants to easily integrate into the entire financial supply chain process through the secure blockchain, allowing for an unprecedented amount of transaction transparency. In mid-October, IBM revealed a partnership with blockchain startup Stellar, spreading the influence of the Hyperledger Fabric project to global levels unseen before.

The Utility Settlement Coin

Six of the world’s largest banks, Barclays, CIBC, Credit Suisse, HSBC, MUFG, and State Street, have announced backing of the UBS and Clearmatics-spearheaded Utility Settlement Coin, joining other industry heavyweights who have already pledged their support for the project, including BNY Mellon, Deutsche Bank, and Santander. The UTC specifically tackles the use of blockchain technologies by traditional banks, utilizing it as a tool for more efficient transactions. Additionally, the UTC addresses the issue of currency backing, with the UTC being backed by cash at a central bank, preventing default and credit risk. These safeguards play a huge role in why the UTC has so much pledged interest, allowing banks to take part in the relatively young digital currency ecosystem. The UTC is definitely a sign of fintech adoption in the banking industry, ensuring the eventual wide-scale use of blockchain technologies on a standardized level across the globe.

R3

Blockchain consortium R3 is another player in the bank-based blockchain space, raising $107 million in May, with four of its backers being Temasek, SBI Group, Bank of America Merrill Lynch, and Intel, with further support pledged from industry heavyweights such as Wells Fargo and ING. One of R3’s primary projects has been the development of their Corda platform, with future plans for an infrastructure network specifically geared toward financial institutions to build their own ledger-based applications and services, implying that these banks currently have and will grow their own teams of blockchain developers. R3 is also focused on governmental acceptance of blockchain, with buy-in from these institutions signifying a drastic shift in terms of governmental compliance and usage of such fintech.

By presenting credible potential resolutions of current-day issues, these projects represent large-scale efforts by the banking industry to fully embrace and integrate blockchain into their current infrastructures. Industry consumers and participants alike should be excited to see how the industry develops in the next coming months.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

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Telegram’s ICO:
Give us $2 billion and we’ll solve
all of Blockchain’s problems

David https://markethive.com/david-ogden

Blockchain Adoption:
How Close Are We Really?

The Diffusion of Innovation Theory,

first postulated by Everett Rogers in 1962, explains how an idea, product, or behavior takes root in society through different segments of a population. It starts slowly at first with the "innovators" and "early adopters," who make up just 16% of the population; these are the intrepid individuals who see opportunities before they are there, who are willing to experiment, take huge risks, and change the status quo.

After them, the innovation begins to gain traction and spreads exponentially to the "early majority," who are more wary than the ones who came before but still eager to jump onboard. They are followed by the "late majority"—a risk-averse and skeptical population—and finally, the "laggards," the ones who are most resistant to change. At this point, the diffusion of innovation is complete—a new norm or product has achieved dominance in society. This model of adoption has occurred throughout history, from the rise of the iPhone to the abolishment of slavery.

Blockchain Today

Where, then, should we situate blockchain on this curve? Many believe we are already in the "early majority" phase of exponential growth, and that we are on the cusp of full adoption. I wish to temper expectations and introduce more nuance into the equation. It is important that we examine the issue of blockchain adoption from two different angles: investments and technology.

On the investments front, blockchain has indeed reached the level of "early majority." More and more capital, both institutional and household, is being poured into cryptocurrencies today. In 2017 alone, the total crypto market capitalization ballooned from 18 billion dollars to more than half a trillion dollars. Coinbase, the online exchange for buying and selling digital currency, recently reached more than 10 million users worldwide and became the most downloaded app on the U.S. Apple Store. Online wallet and portfolio tracking apps like imToken from China and CoinManager from Korea have also seen exponential expansion in their user base. In Korea, one of the largest crypto markets in the world, more than one-third of salaried workers are investors. CBOE and CME, two of the world’s largest financial exchanges, took the unprecedented step of launching Bitcoin futures last month. Across the globe, more than 2000 Bitcoin ATMs have sprouted up. The signs are clear.

How Far Have We Really Come?

From a technological perspective, however, we are still quite far behind. Firstly, there exists a dearth of talent. Blockchain developers are few and far between; the growth of many crypto-projects has been limited by the difficulty of finding qualified technologists. Secondly, there remain many technical issues that need to be ironed out, the most notable of which is scaling. Blockchain networks are still not capable of handling the high transaction volumes that could rival that of large industries and financial institutions. Without the appropriate scaling solutions, transactions costs would be too high and the wait times too long for viable adoption. This can be especially concerning, given that 2018 is the year where a lot of blockchain platforms start running on the Ethereum blockchain.

The sudden influx of many blockchain applications will likely exert greater pressure on the network, due to the exponential increase of activities on the blockchain. If not handled properly, this might result in expensive transaction costs for application on the Ethereum blockchain, and unbearably long waiting time for a transaction to be processed. That said, there are several promising scaling projects currently in the pipeline, including Raiden Network, Plasma, Zilliqa, and Lightning Network. In light of these challenges, I would say that the technology aspect of blockchain is only in the "early adopter" stage, perhaps even in the "innovator" stage.

A Growing Gap

You can see the problem here. There is a gap between technology and investments. If we continue to grow the latter without supporting the development of the former, we might face a severe overvaluation of cryptocurrencies. Yes, the market has reached half a trillion dollars, but as Vitalik Buterin, founder of Ethereum, recently questioned, “Have we earned it?” More must be done to support the training of blockchain developers. Leading institutions such as National University of Singapore and Singapore Management University are some of the pioneers in this regards. And of course, greater resources should be directed towards advancing scaling solutions. Blockchain technology needs to catch up to blockchain investments. If the gap is too large for that to happen, perhaps we should dial down the fervor of our speculation.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

David https://markethive.com/david-ogden

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Tech giant Microsoft and blockchain alliance Hyperledger have joined

blockchain-based digital identity initiative, the ID2020 Alliance. Announced during the World Economic Forum at Davos in Switzerland yesterday, the alliance – which aid agency Mercy Corps and the U.N. International Computing Center have also just joined – aims to improve people's lives through provision of digital identities.

According to a press release, the group is developing solutions with a focus on user's direct ownership and control over their personal data using blockchain technology. At issue is the fact that over 1.1 billion people face not able to prove their identity, and thus struggle to access benefits and services. The situation also gives rise to more serious issues such as human trafficking, according to the World Bank. The initiative has now received a $1 million donation from Microsoft, as well as contributions from entities including Accenture and the Rockefeller Foundation. Accenture, one of the founding member of the initiative, announced a $1 million investment during the ID2020 Alliance summit last summer at New York.

David Treat, MD of the global blockchain practice at Accenture said:

"Decentralized, user-controlled digital identity holds the potential to unlock economic opportunity for refugees and others who are disadvantaged, while concurrently improving the lives of those simply trying to navigate cyberspace securely and privately."

The release explained that digital identity that is user-owned would include government-issued forms of legal identification and allow a seamless authentication process for people and institutions. "We are building an ecosystem of partners committed to working across national and institutional borders to address this challenge at scale," Dakota Gruener, the Executive Director of the ID2020 Alliance, noted. Last June, Microsoft and Accenture unveiled a blockchain prototype for ID2020, that is powered by a private version of the ethereum blockchain.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Gold Market Mulling Blockchain for $200 Billion of Supply

Tech may prevent spread of conflict minerals, money laundering
Bullion joins commodities from oil to tomatoes in ledger push Gold Soars as Crypto Currencies Plunge.. Gold is going digital.

Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen and melted down by recyclers that’s sold each year to buyers scattered around the world. The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding and conflict minerals, according to Sakhila Mirza, an executive board director. “Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.”

The LBMA has pushed ahead with efforts to modernize a trade that until recent years relied on phone auctions to set a key benchmark price for the market. “For us, it’s a question of where the gold comes from,” Mirza said. The LBMA oversees a list of refiners approved to supply the London market. Its London Good Delivery List sets global standards for large gold and silver bars. The LBMA will also study tagging the metal and using other security features to ensure bars are exactly what they say they are, it said in a statement Tuesday.

“Everything that ends up in an LBMA good-delivery refiner needs to be tracked in the supply chain, regardless of whether it ends up as a large bar in a London vault, a kilo bar shipped to the Far East, or a coin owned by a collector,” Mirza said. “A lot has been done already but it’s still very paper-based. We now want to formalize it through an efficient and possibly technologically based solution.”

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
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David https://markethive.com/david-ogden

Korean Crypto Exchange Korbit Halting Deposits from Non-Citizens

South Korean cryptocurrency exchange Korbit has barred non-citizens from depositing local currency – the Korean won – on its platform. Korbit stated in an announcement that its virtual account service will be terminated this month in order to introduce accounts attached to users' identities, as recently ordered by local regulators in a move aimed to calm speculation in the crypto markets, as well as money laundering. As part of that shift, foreign nationals will no longer be able to deposit funds to their accounts.

The firm said:

"If you are not a Korean citizen, the KRW deposit to the domestic virtual currency exchange will be stopped when you switch to the new KRW deposit method in January. [This] applies to both domestic residents and non-residents."

Korbit added that foreigners will not be allowed to deposit Korean won "at any domestic cryptocurrency exchanges" when the new system is implemented. According to reports, the government has previously indicated it would ban non-resident foreigners and minors from trading cryptocurrencies. Early this month, South Korea announced it would begin implementing the new regulations banning anonymous cryptocurrency exchange accounts on or around Jan. 20.

The proposal essentially strengthens know-your-customer (KYC) rules already in existence for exchanges and banks, and will require cryptocurrency exchange users to connect a bank account with identifying information in order to deposit or withdraw funds. Last week, local financial authorities stated that cryptocurrency investors would face fines if they did not switch their virtual accounts to ones with identities attached.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden