Current blockchain technology allows for the recording of property rights. But while users can prove that digital books belong to them, they can’t necessarily prevent people from stealing or reading these books without permission. In such an environment, it is very difficult to monetize digital assets.
Elastos aims to solve this problem by creating an environment in which the execution of a digital asset (i.e., the viewing, buying or selling of a digital movie) all take place on the Elastos Smart Web, and therefore abide by the rules of smart contracts. The creator of digital content can use a tool, provided by Elastos, to determine the number of digital assets to produce.
Authors, for example, can decide that they only want to have 5000 copies of their books in circulation on the Smart Web. Setting a finite amount of digital content produces scarcity and enables the realization of capital. Elastos also wants to enable consumers to become investors. Say there are only 5000 digital books in circulation, and that these books become extremely popular. That means that every one of those books will increase in value, creating potential wealth for the people who bought them. After enjoying the book, the customer could sell it to someone else for a higher price. Users can also buy limited edition game apps. After playing those games in Elastos Runtime on their cell phones, they can sell the games to other people. Because these games are limited editions, their value will fluctuate on the second-hand market.
In another use case, filmmakers could raise money for their movies by crowdfunding through issuing their tokens. The filmmakers could write a smart contract saying that every time someone watches the movie, token holders will get a small share of the fee. The filmmakers may also write another smart contract to let moviegoers sell the movie peer-to-peer or via social networks and receive commissions.
This system creates financial opportunities for both creators and consumers, thus incentivizing more people to use Elastos. The accumulation of more users will incentivize more digital content creators to produce and publish content on the Elastos platform. This increase in content could then attract even more users, and those additional users will create more content. This is a positive cycle that will result in a large amount of valuable digital content that can be used to generate wealth.
Problems with the current paradigm
When you think about it, it is very hard for an indie game developer to sell the games they develop directly to the people who want to play that game. They always have to go through a game publisher if they’re to make any sort of profit. There’s always a middle man involved when you want to sell any sort of digital asset.
Now, let’s think about a second problem users face in the world of today. When you buy a game from a game publisher, you decide to play the game, complete the game and then finally you would like to sell this game. Well, with the current paradigm, you could theoretically sell your game through online third party sites or maybe resell your game for cheap back to the game store.
In either case, you will never be able to sell the game for the exact price you bought it at. Today’s market doesn’t let this happen because as soon as the game is opened, it’s considered a second-hand copy so it drastically decreases its value and its worth in the market.
Solutions proposed by the Elastos platform
Elastos aims to solve all the above problems by using blockchain and Elastos runtime environment that can be installed on your regular devices like android phones, iOS phones, windows computers, etc. Here’s how Elastos can do this: