Part 1: Transparency
Blockchain technology has the potential to offer an improvement for artists and therefore the creative industries as a whole. In recent years, hardly any technology has changed the economy as blockchain has. The introduction of the blockchain has significantly changed the financial industry, the energy industry and the health care sector . Both for the introduction of new payment mechanisms and for the notion of almost any kind of property transactions, whether it is a physical-world hard asset like a car or a computer or intangible assets like stock shares or reservations.
Transparency relates to the lack of opacity, which is reflected in the acquisition and negotiation with new employees and in projects and is a major challenge throughout in the creative industries. Through the use of blockchain technology, it is possible to reduce fraud and opacity along the value chain of project-based organizations. Blockchain makes this possible as it’s a transparent, trust-free and immutable database. Furthermore, the permanent and cryptographically verifiable documentation of transactions makes the record history secure, transparent and immutable against unauthorized manipulation. Thereby the continuous documentation of processes within a supply chain can be ensured. Each participant thus has an overview of the complete history of a value creation and the individual shares in a project where the terms cannot be manipulated by other artists in the value chain. Thus, the blockchain technology holds fundamental advantages for the creative industries in terms of transparency.
The advantageous features of blockchain technology are the increased transparency for customers regarding products and services, and the replacement of complicated, informal relationships of players by transparent and secure records on a blockchain over a complete history. This also provides benefits of work efficiency, cost efficiency and irrevocability. In Addition, blockchain provides censorship resistance, increased speed and reduction of transaction costs. By increasing the transparency of transactions through blockchain, this technology creates security for the transaction partners and protects them from fraud and reduces corruption without resorting to a trusted third party and thus also reducing transaction costs.
Based on our literature search the creative industries could greatly benefit from the introduction of the blockchain technology by (1) increasing the transparency, (2) eliminating informal relationships, and (3) reduction of transaction costs.