New Korean-based startup ContentsDeal is addressing the issue of copyright infringement by launching a distributed content streaming application with an automated payout system on the blockchain. Additionally, the platform offers sharing of online comics, popular in South Korea, as well as video content.
Today, individual users are provided with a wide variety of music streaming services like YouTube and Spotify. But as they are getting more popular, the problem of securing copyright for the artists and creators of content remains.
To make them compensated fairly, the new ContentsDeal platform was launched to integrate the blockchain into the content streaming service. Besides, the startup develops a service for watching webtoons, a sort of a “digital comics” emerged in South Korea in recent years.
The technology behind a copyright security system
ContentsDeal is implementing a proof-of-copyright protocol, based on the proof-of-work concept, into its music decentralized application (dApp) that allows an artist to control the distribution of his or her content by keeping ownership data in a block.
All operations on the ContentsDeal are performed with the native DEAL token, which stores the confidential information such as transaction record and Face ID’s into a block. Face ID, being a biometric authentication service, converts users’ facial images in authentication data, fragmenting and storing it in a DEAL for bigger security.
Members of the ContentsDeal platform, responsible for the development of this application, are familiar with the music industry because many of them previously worked in the Iconic Sounds group. Some members of the startup have produced and managed K-pop and Asian artists.
ContentsDeal is not only working on technical implementation but also strives to attract K-pop artists to its platform. The company has officially collaborated with the Korean Management Federation that manages top artists, including John Legend, Justin Bieber, and Ariana Grande among others.
Online comics distribution service
ContentsDeal is also engaged in making out a solution for distribution of webtoons or “webcomics” that are specific for South Korea. This type of content became common thanks to smartphones.
In ContentsDeal, a team named COMICA is responsible for creating a sharing service for the webtoons. The technical aspect of the service is about to be executed by Sunjesoft and HOA Soft firms.
Initial exchange offering
To attract funds for further development, ContentsDeal is targeting at selling its DEAL tokens. Still, the company decided to avoid initial coin offering (ICO) and choose an allegedly more reliable way, dubbed initial exchange offering (IEO). Its main distinction is that the tokens are sold not by the issuer directly, but instead a trusted crypto exchange.
The team believes it provides many advantages for both sides. Particularly, if usually, the price of a token decreases significantly after the listing on an exchange due to the dumping activity, in case of the IEO investors bypass that stage.
Moreover, before being listed on an exchange, a blockchain project is required to pass tight audit procedures, which serves an additional barrier against dishonest entrepreneurs. The listing process of a token can take months after the ICO. With an IEO, the token gets listed on the exchange immediately after the sale.
Following the IEO rules, the DEAL token was listed on the Korean digital assets exchange called CoinZest on Dec. 5. Users will be able to use the token on the ContentsDeal platform after the official launch, scheduled for the March 2019.
At the end of January, the company has officially started the undergoing open beta test of the platform.