Kim Dotcom is launching a project to create its own cryptocurrency that will allow direct monetization by content creators rather than relying on third parties and intermediaries.
The digital publishing industry faces the clamor of fraud or low payment for publishers. Most of these problems are attributed to the opaque nature of the industry due to its highly centralized configuration.
For an industry in which billions of people participate daily via the Internet and content search, existing training is fraught with many limitations.
In fact, in 2016, Adobe estimated that global advertising revenue losses would be around $42 billion. These are losses resulting from the blocking of advertisements by users, of which the US alone accounted for some 45 million.
All the above reasons are why Kim Dotcom is focusing on establishing an ecosystem that can enable a direct and easy process for both publishers and consumers to get this industry on the right track. The white paper published by the company states that the platform will empower content creators by allowing them to monetize their creations instantly.
As such the project also seeks to address the reduction of the risk of fraudulent transactions, identity theft and give consumers the choice and versatility of content without having to rely on outdated third parties, wherever they may be.
To achieve the monetization of digital content, the project platform works in such a way that content creators can transform their products into encrypted data. Therefore, in order for consumers to have access to this content, it will be necessary to decrypt the data. That's where real monetization comes in.
Consumers who want to access data already encrypted will have to do so through the K.im Payment Engine. This engine will allow consumers to pay for content with cryptocurrency and thus enable file decryption.
This system eliminates interception by intermediaries, which is currently an obstacle to adequate remuneration for publishers.
The current trend in information consumption shows an increasing dominance of digital content. For example, in the United States alone, adults spent 5.6 hours a day watching digital media. The combination of other content views such as YouTube and Twitch amounts to an average of 430 billion monthly content views over the Internet. This is a market of staggering size and an income opportunity that should not be under the control of a few groups of individuals as it is today.
By implementing a blockchain-oriented market driven by virtual currencies, Kim Dotcom claims to initiate a decentralized ecosystem that will benefit everyone involved.
These benefits are expected to cover both the quality of service delivery and the revenue distribution structure.
For consumers, the platform is expected to allow them to access the content they have paid for, when they wish. It is also expected to allow easy monetization of online content, such as blog posts, news articles, YouTube videos, scientific articles, GitHub repositories, Facebook posts, etc., for the actual owners of the content.
Whether for remittances or regular business transactions, enabling peer-to-peer transactions is encouraging cost reduction and direct, auditable, immutable and secure financial communications.
So if you take into account the perceived imbalance that currently exists in the digital content distribution market, this can be a great relief for both content creators and publishers, who will benefit greatly as long as the promised goals are met by using a blockchain-based system.