This is the proverbial "this is not financial advice but is provided for educational and informational purposes.
We knew it was coming. It was only a matter of time before tokenization started to hit the media world.
@blocktvnews is bringing out a token that will be listed in Bittrex. Based on Ethereum, they are going to put all the tokens on there at once. This is a bit different approach to an IEO or a ICO.
Why would BlockTV want to bring out a token?
The answer to that resides in the idea of creating a better user experience.
To start, a token is going to allow for viewers to get compensated for watching advertisements. Many often talk about how the tokenization, thus far, only rewards content producers and nothing is done for the consumers on content. Here is where we are going to see the change.
Consumers are bombarded with advertising. It is the model of the Internet. Now, with tokenization, we are seeing that model shift. Consumers will be able to earn cryptocurrency by watching ads.
Image from whitepaperr.
Another reason is the fact that cryptocurrency can be used for access. The fact that it is programmable money takes things to an entirely new level.
Many media outlets have subscription based models they utilize. Having the ability to provide token holders with access to other features that the non-holders do not have adds value to the token. BlockTV is going to offer this to its users. I will call it a premium section (although they might not use that term). Either way, access is provided.
Tokens also contain an easy voting system. We see this in many ways and is a simple way to give voice to those who are committed to the project.
BlockTV is going to provide the token holders with a voice into what content is produced. What do the holders, who are also consumers, interested in seeing? This is a great way to cater one's offering to those who matter, the ones who utilize it.
Here is the link to their whitepaper.
All this leads to more user engagement. This is a major part of Web 3.0. The second generation allowed for two way communication but it was still users on one side and content delivery systems on the other.
What we are seeing is the merging of both sides. The lines are blurred. Token holders actually have a stake in the entire enterprise. This puts them at a different level than just consumers. Also, by tapping into their knowledge base, there is a greater chance of more direct development that fosters even more growth. Whatever interested the individual who has 500 tokens most likely will do the same for the next 10 people.
Here is the write up on the utility token.
This is the main reason why I believe the Smart Media Token protocol will be so powerful. This project chose to go to Ethereum but many more can opt for Steem down the road.
One of the biggest selling points is that using the SMT protocol provides a proven reward system that is build in. Plus, since the coding mirrors STEEM, anywhere that is listed could see the SMT also on that exchange.
The idea that sites will not be tokenized in 3 years is completely impossible to me. The dam is already starting to break. Once a few sites do it, others will be forced into it just to play catch up. It is like a site not using HTTPS these days. It was once a novelty, now any site that doesn't use it probably is losing visitors.
Obviously, BlockTV is a company that focuses upon the blockchain/cryptocurrency industry. It is far from a mainstream broadcast outlet. However, I do believe the same appeal will exist with those types of companies. It might take a bit of time but I feel that they will sign on.
Over the next few years, we are going to see every model that pertains to the Internet questioned and, most likely, changed. This is going to radically alter how we interact with sites. Blockchain and cryptocurrency are pieces in the foundation of Web 3.0. We are only going to see more examples like this popping up.
I feel things will start to move quickly with this. There is a lot going on and the base layers are in place. It is only a matter of building on top of them which is being done. With thousands of developers and growing, we could see a major explosion between now and the middle of the next decade.
BlockTV will not be the last entity that takes this approach.
Things are getting mighty interesting.
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