A Blockchain YouTube? How would that work?

In my interview with Chris Richardson CEO of Linius technologies, he told me:

• Linius' Video virtualization makes a video blockchain possible.

• Expect new partnership announcements to " develop go to market" product for blockchain.

• Every blockchain video stream will run through Linius SaaS platform.

• A blockchain version of YouTube may be one business model adopted by entertainment industry.

• Individual streaming content producers can now monetize their videos in a way not previously possible.

• Linius will demonstrate blockchain and smart contract technology publicly in next few weeks.

• Positive announcement on Warner Bros trial is imminent.

When you upload a video to YouTube, you are really casting it to the wind.

Anyone can use it, anywhere, anytime for pretty much anything.

Linius Technologies (ASX:LNU) has announced it has successfully embedded its virtualized video into a blockchain, and put a smart contract on top of it. An achievement possible due to the tiny file size of a virtualized video, a process the company has patented technology for.

Linius claim this is a world first, and that it means whether your a movie studio, an indie film maker, or are a successful video blogger or YouTuber, you can now control, monetize and protect your content in a way, never before possible.

According to CEO, Chris Richardson, as an example, a video blogger could incentivize their existing audience to sell their program, with a 10 or 15% split for every new viewer they can attract. Because of blockchain and the smart contract the video is contained in, the whole process is instant, totally transparent and financially secure for all concerned.

According to Linius, the US$52 billion expected to be lost by movie studios and indie film makers by 2020 may be dramatically reduced due to their virtual video technology and blockchain.

He told me that not only can a business or individual using video and blockchain prove ownership of the content, but they can gain detailed information about what, how, where and exactly which parts of the content is watched, person by person.

We do not recommend or advise to buy or sell shares in Linius. The InsideMarket Private Fund does own shares in Linius at this time, however we have not received any payment from the company for this coverage. Disruptive technology stocks should be considered very speculative, high-risk, and very volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

Why Pirates of Caribbean's Captain Jack Sparrow, would hate this technology!

Cap'n Jack Sparrow of Pirates of Caribbean Disney

One of the entertainment industry's biggest headaches is the billions of dollars it loses every year through video piracy.

Many have been trying to find a solution to piracy, which is widely tipped to hot US$52 billion by 2020.

But Linius technologies, an Australian company of which I am a shareholder, has announced: "Linius Technologies Limited (ASX: LNU) – the only cloud-based solution that transforms static video into hyper-personalized video experiences with its world-first Video Virtualization Engine™ (VVE) – has validated its previously announced blockchain strategy by successfully testing its blockchain technology."

[ If you are not familiar with Blockchain, here's a link to an explainer video by World Economic Forum HERE. ]

Essentially what the announcement means, is that when you combine the Linius capability, with what is called a Smart Contract on blockchain, the viewer has to complete whatever the Smart Contract stipulates, before they can access the program.

According to Linius, there is no way around it.

A Smart Contract is a contract that has been turned into computer code and rides on top of a blockchain, and once fulfilled, automatically executes itself.

The code contains a set of rules created, for example in this case, by a program producer or rights holder.

Once the potential viewer, directly, or indirectly, confirms they are abiding by the pre-defined rules, the smart contract executes itself, and the program begins.

Abiding by the contract could mean confirming that the viewer is playing it on a legitimate platform that pays the rights holder fees, or that a payment has been made, directly by the viewer, to the rights holder.

Essentially, if a content creator passes their program through Linius' Virtual Video technology, every transaction is recorded on a blockchain and therefore every play of the program is tracked, and can only be watched, if the Smart Contract rules are followed.

In other words, pay up and we'll play it for you.

Smart contracts are a decentralized automation that facilitates, verifies, and enforces the conditions of an underlying agreement.

If this technology was applied throughout the entertainment industry, my understanding is that it would effectively mean, every illegal stream would be unable to play without payment. No matter where you try and view it.

According to Linius "We successfully uploaded the virtual video into the blockchain, executed the smart contract transaction (with associated mining*), and successfully retrieved a copy of the virtual video based on the criteria of the contract."

If I was the head of a content creation company, in an industry tipped to lose US$52 billion through piracy, I know what I would be doing.

Full ASX statement HERE.

I hope to be chatting with CEO of Linius, Chris Richardson, in the very near future, to get more on this latest development.

In the meantime, here's a previous interview with Chris Richardson.

Welcome to the 21st and a half century!

Thanks to https://looneytuneslovers.deviantart.com/gallery/31006351/Bugs-bunny-and-Daffy-duck for a great piece of artwork!

Interesting news from Linius Technologies Ltd (ASX:LNU) announcing a collaboration with Warner Bros. Entertainment Group of Companies.

If I am reading the announcement correctly then this could be a game changer for Warners and other studios.

It sounds like they are working on creating an on-demand streaming site that will mean WB can offer direct-to-consumers: something not possible till Linius and it's Virtualized Video software.

With Linius software they have a way of ensuring no piracy.

In the words of Daffy Duck "Welcome to the 21 and a half Century!"

Plus they can offer personalized advertising for the studio so it can have targeted promotion. For this and many toher raesons we recently took a stake in Linius. See our previous blog.]

People like Apple and Netflix won't like this as they are really a middle man in the game. Technology disrupts technology.

I have locked in an interview with Chris Richardson, Linius CEO, tomorrow afternoon (Friday 9th Feb). He's currently in Europe.

Also Weebit Nano Ltd (ASX:WBT) news on scaling up it's silicone oxide based storage class chip to a 4Kb chip is very interesting.

You wont get the likes of Samsung etc. interested unless you can show it work at 1Mb and this is a step closer. 4DS Memory is working on the same type of thing but different at the world leading IMEC research facility.

We don't have a stake in Weebit at the moment but once the excitement of today's announcement dies off we will have a look at then.

We currently hold a small position in 4DS Memory and will be interviewing their Executive Chairman Jim Dorian one-on-one in Sydney today for an update on the IMEC work.

I have put in an interview request with Weebit for my trip to Israel in late March.

Finally, I just completed an interview with Caroline Stephen of www.talkingtrading.com.au about our investment strategy. For those interested ion such things her site has a plethora of interviews with some leading investment bods.