The entertainment industry has accepted the use of cryptocurrencies and ushered in a new era, which offers you more efficient ways to get things done. The introduction of digital assets in the entertainment industry gives it a unique touch when it comes to how solutions and opportunities are presented to the public. In this article, we will explain four ways cryptocurrencies have made their mark in the entertainment industry.
1. Using Crypto as a Form of Payment
Within the entertainment industries, there are multiple events like concerts, sports games, and events that accept crypto coins as a method of payment for the purchase of tickets and various merchandise.
Since most people prefer ease, cryptocurrencies have come to stay as they provide a way of sourcing these event materials much easier compared to traditional methods. Before now, the alternative was to buy tickets at physical venues or wonder if the service accepts your credit or debit card service provider if you were using fiat.
The following are some areas in the entertainment industry where crypto has been fully adopted for settling payments:
- Online Casinos: These were one of the earliest platforms that adopted cryptocurrencies. From Bitcoin casinos to Tether casinos, there are many options to choose from for gambling enthusiasts, depending on what coin(s) they own. They have become so popular because they offer anonymity, variety, and crucially, ease.
- Sports Betting: Some sportsbooks accept crypto as a form of payment as it offers bettors privacy and safety, and also helps to eliminate third-party intermediaries.
- Video Games: Cryptocurrencies have been integrated into the gaming and virtual reality worlds, giving users more secure in-game transactions, cross-game interoperability, and ownership of virtual assets. Some platforms like Joltfun, Bitrefil, and Keys4Coins have also started allowing gamers to perform direct crypto purchases to acquire the latest games.
2. NFTs for Digital Collectibles
Non-fungible Tokens (NFTs) are unique tokens that cannot be replicated, as they exist purely on a blockchain. These collectibles can vary between in-game items and artwork that provide a whole new revenue stream for game developers and artists.
3. Tokenized Fan Engagements
With tokenized fan engagements, artists and celebrities can have meaningful engagements with their fans by offering them exclusive access to content, experiences, and events in exchange for crypto tokens. This form of exchange allows creators to create a direct connection with their fans.
4. Funding of Creative Projects
With the rise of crypto crowdfunding platforms, creators can raise funds for their music albums, movies, and other artistic projects from a global pool of investors, allowing fans to feel some sense of involvement in their passion projects.
Here are just a few examples of these projects:
- Decentraland (MANA)
- Audius (AUDIO)
- Theta Network (THETA)
- Chiliz (CHZ) and Socios.com
- Enjin (ENJ)
- Flow (FLOW)
- The Sandbox (SAND)
- Rarible (RARI)
The Advantages of Using Crypto in Entertainment
The following are some reasons crypto is being introduced in the entertainment industry.
- Improved transparency: The cryptographic nature of cryptocurrency means that the transactions are safe with the identities of the users sending and receiving crypto.
- It also helps to facilitate secure and reliable transactions and data tracking, which helps to ensure authenticity and integrity in the industry.
- Reducing intellectual property infringement in media and entertainment.
- Lower transaction fees compared to traditional banking fees, although with coins like ETH which charge a ‘gas fee’ depending on the network’s current workload, these can sometimes be higher than banking fees.
The Disadvantages of Using Crypto in Entertainment
It is not without its drawbacks. Here are a few disadvantages the entertainment industry might face:
- Regulatory Uncertainties: Some entertainment companies might face legal challenges when it comes to compliance with future and existing regulations.
- Lack of Central Authorities: Blockchain lacks a central authority, as there is no single party that has complete control. This lack of authority can lead to difficulties when making decisions, handling disputes, and governing.
- Immutability and Corrections: You only have one take to get it right. Once recorded, blockchain technologies don’t allow for modifications or changes, which can be expensive and time-consuming to rectify errors.
- Scalability Issues: As much as we love growth and as much as the industry is growing, some growth can be concerning and can pose a greater threat than anticipated. In this sense, the concerning growth is the number of users joining the blockchain network and the energy requirement to sustain the network.
- Energy Consumption: Due to the consensus mechanism, many blockchain networks consume a substantial amount of energy. Since the entertainment industry is seeking sustainable energy solutions, these concerns might pose a threat to the industry.
