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Elacity: Revolutionising DRM in the Digital Transformation Era
Digital transformation is projected to grow from $1.69 trillion in 2023 to $4.46 trillion by 2030. The internet makes duplication almost costless. Therefore, the challenge is how to create scarcity, which is crucial for establishing value and, in turn, enables monetisation and the development of new digital asset markets online. Piracy costs the global economy $1.13 trillion yearly, with U.S. video piracy losses up to $71 billion annually and job losses up to 560,000. Most online music is downloaded illegally (95%), and unlicensed software usage exceeds 50% in many countries.
The Digital Rights Management (DRM) market, valued at $3.6 billion, is expected to reach $24.63 billion by 2030. Traditional DRM, while attempting to protect digital assets, often imposes centralised control, creating bottlenecks and reducing the agility needed in today’s rapidly evolving digital space, raising significant issues around ownership, intrinsic value, and fair compensation. Revenue splits favour gatekeepers, such as YouTube, which retains 45%, and Google AdSense 50%; software, app, and music stores take 30% cuts.
As we witness the exponential growth of digital technologies, the need for decentralised identity for scalability and enhanced security in commerce becomes more pronounced. Blockchain technology is projected to reach $1.43 trillion by 2030, and the NFT market $231 billion.
Elacity revolutionises digital rights management by leveraging blockchain and the Elastos SmartWeb technology, ensuring secure, scarce, and valuable digital assets. It aligns with the Access Economy, focusing on monetising access to private property over direct ownership, delivering business models to Web3. A comparison in the real world is using Airbnb to monetise your home, or Grab for your vehicle. Picture traditional DRM online as giving someone else the keys to your home (content), and letting them control access and profits for a big fee. What’s worse is everyone globally relies on just a few people to do this.
Elacity, in contrast, is like having a secure access system: you control who enters and monetise directly through a global market. This approach offers creators transparency, control, and fair compensation up to 95%, marking a proactive step towards a future of seamless, equitable digital asset management. You can read their ‘Access Economy in Web3‘ whitepaper, here is an overview;
- Decentralised DRM System: Elacity introduces a user-owned, decentralised DRM system for asset monetisation in the Web3 environment. This approach contrasts sharply with traditional DRM systems, which often rely on centralised license servers and control mechanisms.
- Digital Capsules: A core feature of Elacity is the use of ‘Digital Capsules’—encrypted digital goods stored on decentralised networks. These capsules contain digital assets ranging from music, videos, software, and other forms of digital content.
- Tokenisation of Rights: Elacity employs tokenisation to represent different rights and values associated with digital content. This includes:
- Access Tokens: These are scarce tokens embedded with specific rights, allowing the trading of access and retrieval of encrypted licenses directly from smart contracts.
- Royalty Tokens: These tokens enable immediate revenue sharing from access token trading to royalty token holders.
- Distribution Rights Tokens: These tokens define specific rights associated with access tokens, such as resale percentage, derivative rights, or transfer restrictions.
- Blockchain and Smart Contracts: Elacity leverages blockchain technology to ensure secure, transparent, and immutable record-keeping. Smart contracts automate license issuance and facilitate immediate royalty payments, enhancing efficiency over traditional systems.
- Global Digital Asset Exchange: The platform serves as a marketplace for digital assets, allowing for the exchange of these assets with scarce, tradable access and ownership rights.
- Integration with Advanced Technologies: Elacity integrates advanced technologies like Elastos SmartWeb and the InterPlanetary File System (IPFS), reinforcing its commitment to decentralised and secure digital asset management.
- Benefits for Stakeholders: Elacity offers numerous advantages, particularly for content creators and owners, such as:
- Creator Autonomy: It provides global control and monetisation opportunities for owners.
- Web3 Business Models: The platform supports various business models, like buy or rent, in a decentralised marketplace.
- Real-Time Payment and Licensing Efficiency: Payments are processed in real-time, and licensing is more efficient compared to centralised systems.
- Enhanced Security and Privacy: Leveraging decentralised technologies, Elacity ensures enhanced security and privacy for users and their digital assets.
The exponential growth of digital technologies underscores the need for systems like Elacity that adapt quickly. Blockchain, NFTs, and decentralised finance (DeFi) are pivotal in this new era, offering solutions for creating digital scarcity, automating complex agreements through smart contracts, and ensuring interoperability and scalability.
On the 9th of January, Elacity will be launching DRM for video on Elastos, offering Bella holders exclusive access to mint video capsules and providing a global access token marketplace for anyone to buy and watch video content back using their decentralised identity. To be the first to find out and get the latest updates, follow Elacity on X.