Major Tech Companies work to Develop Administrative Business Blockchain Solution
Microsoft and Ernst Young, two big names in the traditional tech sector, have recently announced a combined effort to create a joint blockchain project which will assist in the copyright and royalty management sector.
The management of content rights is in dire need of blockchain intervention. Other startup companies have experienced success using the technology for the patenting process, taking advantage of the immutable nature of the blockchain to store key bits of information essential to the copyrighting process. Now, EY and Microsoft plan to use their own blueprints to integrate blockchain technology into a joint project poised to change the way content rights management happens.
The project was first launched Wednesday, and will be rolled out first on Microsoft’s massive gaming business. Entities using the product will be able to streamline the vast processes involved in intellectual property management and the creation of royalty agreements. The platform will allow a wide array of different content creators to interact on a central structure.
The main problem which this blockchain solution is poised to solve involves the high number of intermediaries involved in the copyright and royalty payment process. With the joint effort by Microsoft and EY, it will be possible for content creators to make payments and negotiations happen between themselves—without the need for several intermediate parties’ involvement.
Additionally, this new solution is supposed to cut costs and build more trust between creators on the platform. Furthermore, the creators speculate that inefficient parts of the processes will be reduced, along with the errors created by inefficiency of system.
Unsurprisingly, this autonomous system works off of a smart-contract model. Smart contracts function by executing a certain command, such as paying an artist, every time a certain parameter is satisfied, such as when a song is played or a piece of art viewed. Because the process pays off without the need for outside intervention, it is possible to conduct many different kinds of contracts while never needing an intermediary.
For the Microsoft-partnered project, the smart contract model will be used in order to assess the royalty positions of players in the industry. This will allow for a higher visibility in recording and in the follow-through of transactions involving royalties. Microsoft will be integrating their existing Azure technology on the cloud, as well as Quorum’s blockchain protocol.
Microsoft will first deploy the technology with notable gaming partners such as Ubisoft. Once this trial run has yielded favorable results and revisions, Microsoft will roll the technology out with thousands of its existing royalty partners. They suspect that the platform will handle millions of transactions daily. The smart contract platform’s ease of use means that less resources need to be allocated to conduct any given transaction, leading to a higher amount of potential transaction volume each day.
Speculators argue that this solution by these two tech giants may very well be among the largest blockchain ecosystem from a notable enterprise.