By: Hayley Davison, MLG Contributor
This piece is part of a collaboration with MLG Blockchain Consulting, a leading global blockchain development and consulting firm headquartered in Toronto, Canada, with a distributed team across North America, Europe and Asia that is focused on building next generation applications using blockchain and smart contract technology.
It’s common knowledge that digital content creators can be paid upwards of hundreds of thousands of dollars a month through online streaming platforms like YouTube and Twitch. But regular content creators in the middle of the pack, are still hunting for ways to turn a profit.
Currently, content producers make around $0.44 for every dollar an advertiser spends on a digital ad. Even Facebook’s Watch feature takes 45 per cent of all revenue. With such a low return, it’s no surprise content creators are looking for higher paybacks from better methods of monetization – whether through viewership, sponsorships, advertisements, or a mixture of all three.
Fortunately, blockchain technology could provide the solution to getting creators a better deal. Because of its decentralized technology, blockchain could remedy the issues content creators face on current video sharing platforms like Facebook and YouTube.
One emerging startup, called Verasity, is a next-generation video sharing platform that aims to “liberate creators and benefit viewers.” Backed by blockchain technology, the platform operates as an ecosystem using its own VERA cryptocurrency and wants to create a holistic system that benefits content creation, user experience, and advertising.
How does it work?
Similar to other platform models, any Verasity user can become a content creator by launching their own channel. What sets Verasity apart is its funding models. Through multiple methods of monetization, content creators gain flexibility in their transactions. Whether they are receiving VERA from sponsors, advertisers or viewers, Verasity transactions aim to be direct, fast and transparent for the ease of all platform users.
An added function of Verasity’s economic model is the VeraSparks feature. Through VeraSparks, content creators can sell a portion of their channel’s future revenue to viewers in exchange for VERA currency – similar in theory to crowdfunding. This VERA will then be used by the creators to accelerate their channel’s growth, and users who bought VeraSparks will have a share in the success they helped to create.
Content Creators and Ad Fraud
There is an understandable lack of trust between digital marketers and content creators as ad fraud continues to rise, with billions of dollars expected to be lost to ad fraud every year. As a platform that relies on user engagement, content creator satisfaction, and advertising dollars, Verasity has plenty at stake in making sure their platform is accountable. Therefore, they hope to offer an additional layer of security with their patent-pending Proof of View (PoV™) system.
To foster transparency, Verasity plans to count only “true views,” or views that have passed their PoV™ verification method, by documenting them in a publicly accessible database that contains anonymous viewership information. This will prevent content creators from paying for viewer bots or contributing to other methods of ad fraud. It will also benefit advertisers and prevent disparity in viewership between channels. Essentially, Verasity aims to reward great content while preventing fraudulent behaviour.
The Solution Is Here
There are a few platforms working quickly to come up with a solution for better payment methods between content creators, advertisers, and viewers. For example, Steemit allows content creators to be paid in Steem and SBD, and Brave Browser has made it possible for advertisers to do business directly with content creators, negating the need for a middleman like Google or Facebook. Brave Browser also allows viewers to “tip” creators of content they like, similar to Verasity.
But while these other platforms are working to create a solution, Verasity is ready to implement theirs. The platform intends to redesign commercial relationships between viewers, content creators, advertisers, and sponsors. They want people to feel validation in creating great content. Their value-based system sees success determined by the organic consumption of content by viewers.
Through a decentralized platform, viewers can interact directly with creators and vice versa. If viewers see value in funding their favourite content creators through VeraSpark, then creators can see that their viewers truly care about their work. This also applies to advertisers – by paying viewers to watch ads, a direct connection is formed. Similarly, with PoV™ verification, trust is returned to the content creator-advertiser relationship that hasn’t historically been there.
Verasity’s ecosystem works as a whole to benefit all parties. Their decentralized platform and blockchain technology work in tandem to provide a better experience for all, one that content creators need after struggling with traditional monetization methods. Very few have found success on YouTube and Twitch, but Verasity hopes to bring value to every member of its ecosystem.
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