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How Can Ethereum 2.0 Affect The Entertainment Industry?

After Bitcoin, Ethereum is the second largest cryptocurrency. It is the impelling cause behind cryptocurrency growth. ICOs or Initial Coin Offerings have raised funds in billions for worldwide crypto projects. The majority of ICO tokens use the Ethereum blockchain, so they are called ERC20 tokens.

Ethereum is upgrading to Ethereum 2.0 offering more security, scalability, and sustainability. Ethereum 2.0 will bring more savings because the users will need to pay less for each transaction. The Ethereum-based apps will easily migrate to 2.0 without the concerns of losing data or transaction records. The traditional mining structure is switched to staking. Miners will have to stake for transaction validation to receive transaction fees and block rewards.

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Ethereum 2.0 and the entertainment sector

Blockchain technology is revolutionizing major sectors ranging from healthcare, supply chain, automotive to telecom, and finance to retail. It has proven to be successful in transparency, security, and safety. The entertainment and media industry is still lacking blockchain technology deployment. However, content creators and artists can reduce challenges like fraud, piracy, and copyright using blockchain technology.

How Ethereum 2.0 can help to resolve challenges the entertainment industry struggles with?

Piracy and IP rights infringement

Content creators, musicians, artists, and game developers struggle with intellectual property right infringement. It is generally associated with access or distribution of content without paying. The P2P-based program makes it hard for media players and music creators to monitor their content. They are not aware of how, who, and when their content is accessed and distributed.

Blockchain, decentralized processes can help to enhance media supply chain value and monitor IP rights infringement and piracy.

Intermediaries consume significant profit margin

Music creators are forced to take support from intermediaries for the distribution of their albums. It is essential to reach a wider audience. They even have to pay for IP rights protection, which adds to the selling cost. There are also cases of hacking, which cannot be prevented.

Advanced Ethereum 2.0 will increase system transparency. The content creators can monitor how much intermediaries are using for marketing. Blockchain technology focuses on creating ads for target audiences and thus mitigates overall marketing costs.

Unclear royalty agreements

The good-quality music market is lucrative and content creators can grab this exciting opportunity. Streaming services are gaining popularity, so musicians are forced into signing a royalty agreement.

A Musician’s main revenue form is the royalties but the absence of correct metrics and clarity on the royalty share is unfair. Besides, some intermediaries are so hogged that they don’t recompense the content creator on time.

Blockchain use in the entertainment sector will help content creators receive streaming royalties they are eligible for without any hassle. It is a tamper-proof technology that detects fraud.

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