Bitcoin and other cryptocurrency are taking the economy by storm. Traditional banking is slowly being replaced by the above-mentioned types of currency. Businesses are slowly adopting these currencies for better opportunities that will help their business grow quicker. The movie industry has started to use blockchain technology for transparency. Known for employing old-school transaction recording techniques which have been proven to have some cracks in the system that result in revenue losses, using blockchain in recording the transactions in one movie project can greatly improve the transparency of transactions within the organization. But what is blockchain really and how is it helping the movie industry change its practices in terms of finances?
Blockchain in a nutshell
Blockchain technology, in simple terms, is a digital ledger. This ledger is securely encrypted. The premise of this technology is that it is publicly available for viewing but not for copying. This allows for better transparency of economic transactions and just about anything that concerns a particular business. Now how does this apply to the movie industry? Let’s see.
The complexity of recording transactions
Let’s say, a movie project is being produced and shot in New York. The whole movie production consists of a hundred people or so: the producers, directors, the actors and actresses, crew and so on. The production is divided into several departments, and these departments have to report their transactions so that the budget for the movie is spent and audited correctly. Now if the some of these departments report erroneous transactions for a myriad of reasons, chances are the project will go over budget, which will not be favourable to the producers who will shell out the money.
Now if these transactions are recorded on blockchain, the transactions involving money will be recorded by each department in one spreadsheet or database, where all concerned parties of the movie production will have access to. A blockchain spreadsheet will be created for that particular movie project before production commences so that every single transaction and any other information will be recorded and shared among the parties.
Prevention of corruption
Let’s admit it: any organization where there is money involved will be bound to experience corruption within the ranks whether we like it or not. And the movie industry is not spared. With the help of blockchain technology, producers – the ones who finance a movie project – will be able to reduce, if not totally eliminate, corruption within the project, thanks to the transparency of transactions and information.
With this technology taking off at a rapid speed, more and more production outfits in the movie and entertainment industry will make use of this technology to further help them in making their projects more economical and for the information to be shared within the parties involved seamlessly. It’s amazing how much technology has contributed to making just about anything a lot easier and more convenient. Let’s just hope that hacking geniuses will not find a way to create a crack in this system for selfish purposes.