On January 3rd 2009, the first bitcoin block was processed, or    mined.  
    Known as the genesis block, its special for a variety of    reasons.  
    Most notable is the colossal achievement in establishing a    secure digital store of value, or currency, a culmination of    some 30 years mathematics, cryptography, game theory and    coding.  
    Some hundred years earlier, Marconi demonstrated it was    possible to transmit radio waves across the Atlantic.  
    Ironically, his innovation had multiple detractors, from his    Italian compatriots who showed little interest in his work, to    those who believed radio waves would not follow the curvature    of the earth.  
    Marconis radio waves didnt follow the curvature of the earth,    but with a little help from the ionosphere, did reach    Newfoundland.  
    In 1909, Marconi received the Nobel prize. Radio is a    foundational technology.  
    It created new bedrock for economies, transforming how we    understand ourselves and our place in the universe.  
    But it took more than a hundred years of innovation to reach    where we are today.  
    Bitcoin, and its underlying transaction record, blockchain, has    a cryptographic elegance allowing the creation of digital    events that are persistent, secure and unique enough, to which    value can be ascribed.  
    It can be thought of as a collapsing protocol, combining the    ability to store value, indelibly record ownership and make    payments.  
    Interestingly, some eight years after the genesis block was    created it still contains encoded, for as long as a single    bitcoin node exists, in hexadecimal, the text: The Times    03/Jan/2009 Chancellor on brink of second bailout for banks.  
    This was a nod to the economic difficulties of those few months    included by bitcoins creator, the pseudonymous Satoshi    Nakamoto.  
    It took only a further year for bitcoin to acquire value when    in May 2010, after a four day quest, Laszlo Hanyecz convinced    Jeremy Sturdivant, to exchange 10,000 bitcoins for two Papa    Johns pizzas.  
    At todays bitcoin price of roughly $2,500, those were special    pizzas.  
    Over the next few years, what was a triumph in coding and    cryptography, ran into rougher waters. Dogged by a reputation    for extreme volatility, criminal activity, money laundering and    financing terrorism, bitcoin suffered a lot of bad press.  
    Silk Road, using bitcoin as a medium of exchange, was probably    the low point, the FBI eventually shutting the site down and    seizing control of some 26,000 bitcoin in October 2013.    Notwithstanding, the curious technology persisted, with    hobbyists and enthusiasts working hard to develop and evolve    the open source protocol, spawning in turn numerous    derivatives.  
    As of today there are some 800 cryptocurrencies, all leveraging    the thinking behind the original bitcoin protocol.  
    Many thought technology would lead nowhere, and mass adoption    of bitcoin, or some other derivative cryptocurrency, was    considered ridiculous.  
    And whilst the concept of bitcoin does seem ridiculous, it    works.  
    Its nigh on impossible to shut down because of the distributed    nature of the record of ownership; every single node needs to    be destroyed.  
    It is easily accessible via a mobile phone allowing payments to    be made with relative ease without the need for fiat currency,    central counterparties, payment systems or general ledgers.  
    And the protocol itself has never been hacked.  
    In 2014, it started attracting the attention of the Bank of    England.  
    In their third quarterly review of the year, examining payment    technologies and the emergence of digital currencies, the    authors conclude the key innovation is the distributed ledger    allowing payment systems to operate in an entirely    decentralised way, without intermediaries such as banks.  
    A year later, the Economist ran a piece called the Trust    Machine, proclaiming how the technology behind bitcoin could    change the world. And Ginni Rometty, CEO of IBM, made an    equally bold claim in The Wall Street Journal, late in 2016,    that blockchain, once widely adopted would transform the world.  
      IBC2017 -Blockchain and Broadcasters: A      Masterclass Exploring the Opportunities for Broadcasters - in      Distribution, Transparency, Anti-Piracy and Other Areas.    
    So where are we? For the media, entertainment and broadcast    industry, there is little reference to the technology, which is    strange, given the opportunity.  
    Aside from the obvious use cases relating to transaction    processing, content is unique information, which is exactly    what digital currencies are.  
    This means the cryptographic ecosystem created to record    ownership can be applied to video, audio and text.  
    Content can be cryptographically secured, key pairs generated    to control authorship and progress through production phases.  
    Blockchain allows a family tree of variants to be created, each    with its own metadata, and cryptographic index, accessible    anywhere.  
    Digital identities, anonymous or otherwise, can be created,    capturing consumption data, and linking that to payment    frameworks, operating without the need for fiat currency. This    would also allow the synchronisation of payment at the point of    consumption, at a micro level.  
    Finally, capital can be raised by issuing digital tokens,    similar to bitcoin, funds being held in escrow, released in    tranches, after peer-to-peer validation of the different phases    from the treatment to preview.  
    Unique digital experiences can even be attached to those    tokens; augmented and virtual reality, content gamification and    curated viewing. I have even had a conversation about using a    blockchain-jam to reach consensus as part of originating    music or video content.  
    In exploring the immense opportunity this technology offers,    there are seemingly three challenges. The first is    understanding.  
    Presentation of blockchain and digital currency technology,    largely focuses on describing it as a distributed ledger, or    database, that maintains a continuously growing list of    records, called blocks. Whilst technically correct, this    doesnt engage the imagination.  
    Its the equivalent of describing radio as the simultaneous    periodic variation of electric and magnetic fields.  
    Both of these descriptions do little to highlight the    importance of their underlying importance.  
    The second is the general omission of any reference to the    digital currency part. Most articles discuss blockchain, making    some passing reference to bitcoin, without discussing the    higher order of efficiency possible when considered together.  
    The net result are blockchain projects, that are nothing more    than databases, still referencing the real world via fiat    currency, versus including the digital currency part.  
    Finally, bitcoin is generally perceived as bad, so nobody talks    about it, despite having current aggregate value of some $42bn.  
    Blockchain is a collapsing protocol; it acts as a store of    value, a payments platform, and a ledger to record changes in    data, whether an ownership record, or otherwise.  
    True blockchains are also immutable. Their distributed nature,    the cryptography they employ and the consensus mode of    operation which ignores bad actors creates a trust fabric,    where every node on the network can trust every other node,    without the need for a trusted intermediary.  
    The store of value is a unique cryptographic event, in the same    way content is, making the blockchain ecosystem perfectly    suited for managing the secure capture, creation, distribution    and consumption of content asymmetrically; it puts the author    back in control.  
    Ignoring or dismissing the technology at this stage is as    dangerous as ignoring Marconi.  
      Founder and Managing Director of Blockchain      Hub, an advisory company promoting and supporting the use      of Blockchain across business sectors.    
      He is a former General Manager of Fujitsu and has held senior      operational and technology strategy roles in the Bank of      England, A.T. Kearney and Deutsche Bank.    
      Next week: Mark Mayne examines the size and      scope of the blockchain market.    
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Blockchain: a new foundation for media, entertainment and broadcast - IBC365 (registration)