Blockchain 2.0 – using the blockchain for purposes other than simply register the movement of funds. The purpose of Creativechain is to allow digital creative works to be registered one time and become indelible – permanently the property of their creator or owner, in a provable way. From a financial standpoint, there are several possible utilities here, chief among them allowing creators to get paid regardless of who or where their content appears.
The recent irruption of blockchain technology gives many possibilities for the registration and distribution of intellectual property without intermediaries.
Creativechain’s whitepaper correctly identifies that traditional media industries have not managed to harness the power of the decentralized internet. While they have managed to profit from things like Spotify, the sale of MP3 albums and e-books, they have failed to automate this and still rely on law enforcement to ensure their properties are not pirated.
Creativechain proposes to make a step toward ending this state of affairs. Creators would be able to register their work once on Creativechain, and then those who would like to enjoy the work or use it in other commercial applications can simply license it from the creator directly, in an automated way. If you’re a publication looking for some content, you could license a few articles through Creativechain, and a marketplace of competing authors could serve your need. It doesn’t always work like this in creative pursuits, of course, but the point is that a more equitable situation for creators is possible through the blockchain.
Creativechain incorporates all the advantages derived from the innovation of crypto coins. In this way, without the need to use bank accounts, purchases, micropayments or donations can be made to the authors of the registered contents.
Creativechain will be paired with Creativecoin (CREA). These are the token of exchange on Creativechain. They will obviously be exchangeable for Bitcoin when altcoin exchanges list them.
The platform also aims to make the creation of decentralized applications easier for developers, so that platforms can be built on top of it in order to make the acquisition and distribution of content easier. Creativechain is a Scrypt-based Proof-of-Work network, meaning that people will be able to obtain CREA by mining, and miner rewards will be enhanced with the registration fee that all creative works will pay (.001 flat fee.) This fee is interesting because it means that all participants in the network will have incentive to see the network grow and prosper – miners will want more people using Creativechain so that more registrations are made; users will want more users so as to potentially make the value of their CREA and subsequently their works rise. The approach is novel and differs from Factom in that it 1) uses its own blockchain, rather than attaching data to the Bitcoin blockchain and 2) calls for the creation of a market. Combined with the ability to trade the token, therefore adding another element to the system: you, the speculator. All elements play vital roles, as in all markets.
Lastly, Creativechain will make it easy for people to utilize smart contracts. Think subscription fees. Without the middlemen of Paypal and the banking cartel, subscription fees can be more affordable. All types of digital content providers can benefit from something like this: “we got rid of our advertisements, can you pay a couple CREA a day for automatically-enabled access?”
The platform also has a concept called “Smart Actions,” which means that creators will be able to sell access to their content using a variety of methods. Presumably, for instance, a creator could sell the rights to something for non-cryptocurrency, and then issue a license to the lessee themselves. The overwhelming theme seems to be to enable the legitimate owners of content, rather than the publishing and recording powerhouses of old.
Who It Is
Creativechain is the brain child of graphic/web design veteran David Proto. Proto has been working around that industry since 2007, and he founded Comando Suricato, his current firm, in May of 2013. Since then he has worked for a few blockchain-related firms in graphic/web design categories. It is evident that he himself would benefit from a successful launch of Creativechain, given that he creates visually interesting and high quality artwork on a regular basis. In a recent interview, Proto said:
Creativechain is a platform with a clear roadmap whose goal is to be a free software tool of reference in the multimedia ecosystem of the new era blockchain. Throughout this year, we hope to see the use of the platform in the main audiovisual media (photography, video and music). Once Creativechain platform is consolidated, we will open new platforms connected to the blockchain of Creativechain. They will be specialized in the distribution of software, ebooks, blogs, newspapers and other means of cultural distribution.
Next on the founders list is Anna Nos Ripolles. She is also a co-founder of Comando Suricato, and has acted as an art director at a few organizations over the past few years. Her role or importance is relatively unclear, but presumably as an artist she plays a direct role in the look and feel of the Creativechain product.
Web searching her LinkedIn username reveals a bit more of her career, from before her listing on the site. For instance we find here that she is a highly competent desktop publisher.
That she and David are both artists lends some credibility to the platform’s intentions – it’s always best to try and solve one’s own problems first.
Last on the founders list is Vicent Nos Ripolles. Vicent appears to be the technological brain of the founder team, having worked in IT consulting as well as having previously funded and founded a co-working space called the Entropy Factory. He lists PHP, payment gateways, and electronic payments as his skills.
Unlike other projects we have reviewed here, the team includes mostly developers. That’s what you want to see when dealing with a technology product: more developers and actually useful workers than anything. The product doesn’t reach market at the behest of the “social media manager” after all. Making up the rest of the team we have 4 developers, 1 system administrator, and 1 strategic communication guy. This last guy likely plays the very difficult/important role of reaching out to content makers like Hacked.com and attempting to get them to use the platform.
The author will be eating his own dog food on this one, and entering the crowdsale personally. This does not automatically earn this crowdsale a 10 on a scale of 1-10. The merits of this project, and the need of it, are known very well to the author. So as not to pollute the rating, let’s look at some of the negatives of this project before delivering the verdict.
- The role of Creativechain could be played by a competent Counterparty or Ethereum project, eliminating its novelty. On the same note, Factom could simply expand to do everything Creativechain intends to do. It certainly wouldn’t fall outside of their mission of “making the world’s systems honest.”
- Creativechain uses a Scrypt proof-of-work mining algorithm. While this is good for miners, it has to stay good for miners in order to avoid difficulty surges and valleys. Many altcoins experience periods where, right after a large mining outfit disconnects from the network, no one remaining has the hash power to mine another block for hours until the difficulty drops. One hopes Creativechain will be aware of this hazard and implement smarter difficulty adjustment alogrithms as a result, since accessibility of the content and payment rails is of the utmost importance.
- Too much of the communications seem to be based in Spanish language. Nothing against Spanish speakers, but the language of money in our current times is most definitely English. If Comando Suricato is entirely serious about their project, they will hopefully contract with communications people in English-speaking countries to more clearly communicate their message to the money centers. The whitepaper itself is clearly not written by a native English speaker, but this should only become a problem if competing projects reach fruition before Creativechain has a chance to mature.
These things notwithstanding, we’re going with a 7.3 on this one. Like all altcoins, it has the potential to tank in value, but the utility would still be there. This tank in value would affect you mainly if you entered in at the crowdsale level, otherwise it would be a benefit for you. So you may just want to wait until it gets listed on exchanges, and catch it on a downward movement, if you believe you’ll have a use for the coin. As far as pure speculation goes, you’ll want to limit your investment here pending the future, but active trading, rather than passive holding, could net you a tidy profit once the thing goes live.
Just under 8 million CREA are available for another couple of weeks (roughly). Unlike most ICOs, you can buy CREA with a bank account. That they are making their identities known to the banking cartel is a major plus in terms of safety, since no sane scammer would do as much. You can, of course, also use Bitcoin.
If you enter the crowdsale via Bitcoin, make sure you have control of the wallet you use – do not use Coinbase or some other Bitcoin bank, because in the event that the ICO does not take off, your refund will be sent to the address you sent from (minus 2%). Once you’ve made your investment, you can claim your CREA on May 1st. The wallet is already available for testing:
You can’t buy a specific amount of CREA in the Crowdsale. The way they are doing it, the 7,947,316 CREA that are being sold will be distributed amongst the investors by how much they invested. So if 100 people invested and you invested 20% of the group’s sum investment, you would get 1,589,463.20 CREA. Currently around 70 people have invested roughly a little over $10,000 in bitcoins. Bank investments are obviously not public in the same way. This makes the current value of each CREA about 70 satoshis.
Featured image from Shutterstock.