With the release of the much anticipated Tritium network upgrade, any type of digital asset can be registered on the Nexus Blockchain. Our new technology includes, digital licensing, Signature Chains, digital watermarking, tokenization, a Decentralized Exchange (DEX), and automatic royalty payments.
These collectively support agreements between a digital asset owner (licensor) and a purchaser (licensee). This true peer-to-peer exchange will provide a more efficient, accurate and secure way for exchanging value in the creative industry, and could possibly result in higher revenues to creators.
Digital assets include, but are not limited to:
- Music , Audio Books, E-books
- Graphics & Photography
- Film, TV shows
- Games, Software and Apps
When a digital asset is recorded on Nexus it is witnessed by a distributed consensus on the Nexus Blockchain. This makes the proving of asset ownership easy, and introduces the added functionality of digital licensing. The benefits of licensing on Nexus are threefold: Digital assets can be watermarked and traced for authenticity, license agreements can be executed in a genuine peer to peer interaction, and payments can be tokenized to distribute revenue between asset owners. All of these are facilitated through the interaction of three key architectural components: Signature Chains, Registers, and Conditions.
A Signature Chain is a decentralized blockchain account that is accessible through a username, password, and pin. This identity layer is important for the managing of assets and digital licenses, whilst maintaining pseudo-anonymity for privacy.
In our opinion, Signature Chains are an important step for mainstream adoption of blockchain technology, given that users will no longer have the burden of storing private keys. Please see Signature Chains for more information.
Registers are a data storage system that maintains an immutable record and history of all its current and previous states. Registers can act as assets, accounts, tokens, or any other object that requires a persistent state to be maintained. An asset is in essence a register with specific data formats. E.g:
Image ID: 108629084398374
License Type: Enhanced
Image title: Arizona Sunset
The above example displays a simple meta-data format for a photographic asset that is stored in a programmable object register. This format can be augmented with mutable and immutable type specifiers, meaning that a field such as ‘Image Title’ in the example above, could be mutable and able to be modified, while the other fields would remain immutable.
Conditions are statements that are at the heart of a contract. Conditions generally disclose an agreement between the two pseudo-anonymous parties via Signature Chains, and outline a set of conditions that must be met for a transaction to be executed. This provides the building blocks of Nexus contracts, which stipulate the requirements for the contract to be fulfilled.
With traditional methods of copyrighting, once a digital asset has been licensed, it is difficult to track infringement or misuse. Post-purchase, any digital asset (audio, film, text, software) can be registered to the blockchain, and contain an embedded watermark pertaining to a digital license. Watermarks can then be linked to a contract on the Nexus Blockchain, providing a way for purchasers to prove that the use of a digital asset is within the terms of their license agreement. With the use of a digital watermark reader, this technology can provide evidence of license violation.
Though watermarked digital content is not a new innovation, linking said watermarks to licenses recorded on a blockchain is. This is a major step towards improving the overall security of watermarked content. In order for this technology to be of benefit to content creators, compatible media players, photo viewers and websites will need to be capable of verifying these watermarks.
In the case of applications that do not support watermark verification, the watermark does not interfere with the quality of the original digital media, maintaining backwards compatibility with all existing media applications. Likewise, a reduction in quality or security will not be experienced by watermark enabled media players.
If you would like to view a demonstration application for watermarks, you can find it here on our source code repository:
The intention of this technology is to provide independent creators and responsible consumers the tools to self-regulate, and ultimately rely less on third parties.
To see widespread use for blockchain enabled digital licensing, these assets and their ownership will require legal or common law recognition. Fortunately, the future looks promising, given that in some US states such as Arizona [Coindesk], a digital signature on the blockchain is already legally recognized.
Until now, tokens have mostly been used to raise capital in the form of Initial Coin Offerings (ICOs). Conversely, Nexus Tokens can either represent a store of value such as NXS, or enforce partial ownership in order to facilitate the payment of shared revenues for any asset.
In the case of the creative industry, this tokenization model enables the automatic distribution of royalties to multiple owners of a digital asset. Examples of token holders include: musicians, models, actors, editors, producers, directors, scriptwriters, songwriters, writers, charities, graphics artists, seed investors, or anyone who had a share in the creation of the digital asset.
This will improve the process of distributing revenue to the relevant token holders, in a direct peer-to-peer manner, enforced by mathematics. This is in direct contrast to centralized intermediaries, whom often add both costs and time to facilitate transactions.
Please see Contracts and Tokens for more information.
Our new aforementioned innovations enable true peer-to-peer exchange by replacing traditional distribution channels. Our hope is that consumers will be provided with greater levels of transparency and flexibility, and that creators will have a greater say as to how their work is used, and be fairly rewarded.
A Vision of the Future
We see the future of digital licensing containing apps that allow anyone to look up an image (using technology like Google’s advanced image search), or an audio file (using technology such as Shazam), to find the available licensing, and with the click of a button the license is paid and distributed to all content creators. This will improve not only the mechanism for these licenses to be paid, but also the accessibility and transparency for the everyday user. Our innovations will ultimately bring creators and consumers closer together.