What Is Blockchain Technology and How Can It Help Finance Movies?
The overwhelming majority of blockbuster Hollywood movies that you watch are created and financed by a very exclusive group of stakeholders with a lot of power and money, and little motivation to change the way things work.
This might be good for the powers that be, but it’s not so good for the creatives, producers, financiers, and fans that aren’t part of this exclusive group.
Blockchain technology can change that. It can democratize the film production value chain in a way that’s more equitable for all stakeholders involved.
Let’s dive deeper into what a blockchain is and why we at Mogul are using it to change the future of film.
What Is Blockchain Technology?
When you think of a database, what images come to mind? Perhaps you think about spreadsheets, or maybe a server that stores sensitive information related to business, banking, customer data, or other vital pieces of information that you might use either for work or personal reasons.
Ask yourself, what do each of these vital pieces of information have in common? They all typically live on centralized servers that computers need to access in order for you to make use of the data.
The problem with hosting on centralized servers is that centralized servers can be hacked.
A blockchain is a decentralized server. It is essentially a community of users lending their computing power to a network that doesn’t have a focal point of attack. Data can be stored in a secure and trustless environment in such a fashion that a hacker can’t get to it because there is no central server storing all of the information in one place.
Another Reason a Blockchain Is More Difficult to Compromise
Imagine a strand of DNA. You know, the classic image of a helix you learned about in high school biology class?
A blockchain organizes data into groups or blocks, and these blocks are tied together. The only way to reveal the data hidden within each individual block is to unlock every other block in the chain.
While it is technically possible to do this, once you have thousands or millions of blocks of data in reality it’s nearly impossible to steal that information.
What Can Blockchains Be Used for?
Mogul uses the blockchain to allow users to vote on movies they think should go into production and be financed by the Mogul community. We also use the blockchain to distribute STARS tokens to users and provide proof of ownership to the NFTs we create.
That includes not just the NFTs that represent Mogul Access Passes, but also the unique works of art and intellectual property created by Mogul-funded films and events, like the artwork created by Marvel and DC Comics artist Rob Prior.
The reality is that blockchain technology itself is just a decentralized database where information is stored, secured, and validated by users. The information itself can be related to anything you can think of. In the case of Bitcoin, the data stored on the blockchain is related to currency or exchanges of value.
In the case of Ethereum, data can be related to currency, NFTs, and decentralized applications. IBM uses blockchain technology to store data related to supply chain management and logistics. Governments can use the blockchain to store information related to healthcare or passports, or other sensitive details that could normally be stolen from a centralized server.
But our own personal favorite use case for blockchain technology is decentralizing the financing of movies.
Here’s How Blockchain Technology Can Help Finance Movies
If you’re a movie buff (if you’re reading this, you probably are), you’ve probably not only watched your share of movies, you also know that a hit movie can both spend and make a lot of money.
The Hollywood movie industry is not just about the glitz and the glamour of the red carpet or which actors and actresses are dating each other. It’s big business and it's big money.
What you might not know is that most of this big money is controlled by 5 major film studios in Hollywood:
1. Universal Pictures
2. Paramount Pictures
3. Warner Bros. Pictures
4. Walt Disney Pictures
5. Columbia Pictures
What does it mean when very few players have control of most of what happens in a given industry? It means it’s very difficult to get a movie made if you’re not in the know with one of these five companies.
Mogul uses the blockchain to connect creators, movie fans, film financiers, and other contributors to projects that may not get funded by the above film studios, but can still have tremendous value both at the box office (including its digital and streaming equivalent) and in terms of the artistry, storytelling, and excitement that they help bring to life.
Many movies that wouldn’t otherwise get made might get pulled off of The Black List, for example, by a select few industry insiders and become Oscar winners.
The Mogul community allows users to participate in the making, financing, and potential of such movies without the backing of a major studio. Mogul becomes a de facto digital studio, driven by the fans, using blockchain.
How to Get Involved with Blockchain Technology and Mogul
Taking a sneak peek inside the Mogul community is as easy as registering for a free account.
Once you do that, you’ll have access to a dashboard, a showcase of the latest films being voted on for financing and production, a community portal where you can stay up-to-date on upcoming Mogul events, and a farming platform that allows you to benefit from the STARS and Ethereum tokens that you contribute to growth farming pools.
Using all of the above tools, you can benefit from the next great movies being produced with input from our community and share in their success the way the five major film studios and industry insiders have been doing for decades.
Get familiar with blockchain technology and understand how it has the power to decentralize both data and finance.
It’s time to help the next Oscar winner come to fruition and Mogul is the gateway to make that happen!