What do blockchain technologies imply for digital creative industries?

Abstract

As the technology that powers cryptocurrencies like bitcoin, blockchains are associated with volatile and (as yet) largely unregulated financial trade, but they are also about more than money. This capacity to help automate, incentivize and authenticate global trade has numerous potential applications. Blockchain technologies promise efficient transactions, greater accountability of trade and increased/direct payment for creative enterprise. As such, despite their lingering technical challenges, these nascent technologies are already being employed within a wide variety of creative innovation processes. Based upon research into their potential applications within Scotland's digital creative industries, this study explores the ways in which these emerging technologies might disrupt digital creative industries, such as digital media production, digital art, web/interface/experience design, application development, extended reality and gaming, both in Scotland and beyond. Of particular interest are the ways that these emerging technologies might transform value exchange and intellectual property management. Early results indicate that blockchain technologies are poised to substantially disrupt the sale and distribution of creative digital works. Yet, whilst these emerging technologies can encourage open innovation, it also seems likely that they will just as often be used to streamline existing systems designed to control and potentially exploit creativity. The implications for digital disruption theories are discussed, highlighting the need for frameworks that can also account for second‐order disruptions.

The Impact of Blockchain Technology on International Trade and Financial Business

“…Most scientists and technology transfer specialists see the prospects for building socioeconomic processes and even a fully robotic economy (Arduengo & Sentis, 2021) using blockchain. In particular, blockchain is a way to improve the efficiency of supply chains (Budak & Coban, 2021); it is the primary tool for the widespread use of smart contracts (Nanayakkara et al, 2021) and generally allows the advancement of digital goods and services industry: for example, the global production of movies, music, software that face great problems with pirated use (Patrickson et al, 2021). It is safe to say that almost every sector of the economy can apply these technologies, which will reduce costs and increase the level of security and control over transactions.…”

“…With the use of technology, the process of monitoring and licensing intellectual property products can be simplified. The use of smart contracts can simplify the process of payment for using products, which is especially relevant for the music industry (Patrickson, 2021).…”

New forms of finance and funding in the cultural and creative industries. Introduction to the special issue

“…Initial coin offerings (ICOs) and non-fungible tokens (NFTs) are two forms of tokenized funding, both part of the cryptocurrency industry. As a programmable system for secure digital ownership and greater transparency of trade, the blockchain and blockchain-inspired technologies are likely to affect an artist-centric digital ecosystem of the CCI (Patrickson, 2021).…”

“…The authors suggest that regulation and perhaps a third party (a new intermediary) needs to be set in place before ICOs gain ground in the financing domain (Knott et al, 2022). However, the "ICO rush" has also been criticized, leaving doubts about its sustainability as a fundraising practice (Patrickson, 2021).…”

“…Pooling resources such as rights is a form of shared ownership, which, as digital assets, has the potential to be bought and resold at any point in time (Patrickson, 2021). This volatility can be a cursed blessing, as also suggested by Knott et al (2022): more funding may become available, from a diversity of funders, but with no guarantee of permanence.…”