March 20, 2019

Video blockchain: The solution to online piracy isn’t elimination, it’s commercialization

Blockchain has made headlines for cryptocurrency and its potential to transform the finance world, but what about its implications for video?

Although there’s been less noise about blockchain in the video space, film creators, distributors and OTT streaming platforms alike are starting to tune in to the opportunities the technology presents.

Put simply, blockchain technology is a chronological chain of unalterable records (‘blocks’), where each block contains a ‘cryptographic hash’ of the previous block. A timestamp.

As blockchain is a type of distributed ledger, the technology offers greater transparency, enhanced security, complete traceability and increased transaction efficiency -- all of which can deliver great benefits to the video landscape.


Reducing Video Piracy

Blockchain holds a lot of promise for video protection; it provides an additional barrier to infringement due to the way it organizes data on its chain.

Blockchain can implant security safeguards within the actual video content to control duplication, sharing, transferring or selling of ownership.

However, there is one potential roadblock; video file size.

Traditional digital video files are too large for blockchain — but if the size of the digital files could be drastically reduced, blockchain could allow users to transfer videos securely while maintaining full visibility of that transfer.

Video virtualization technology developed by Linius tackles this problem — creating virtual video files that are a fraction of a percent of the size of today’s digital video files — enabling video to be easily transferred and managed by blockchain.

Virtualization makes it possible to track, record, transfer and manage video files on blockchain, as it breaks down the video into data, reassembling video content at the point of playback.

In this way, blockchain and virtualized video can keep a video secure, only releasing it once both parties confirm a transfer is legitimate.

Linius Technologies has built and tested a prototype where virtual video can be embedded in a blockchain, using smart contracts to control the transactions associated with video files.

By embedding a file within the blockchain and controlling it with smart contracts, the protective power of blockchain technology can be directly applied to video — just as it is to cryptocurrency today — to effectively address the world’s multi-billion-dollar piracy problem.

As previously reported by, worldwide revenues lost to online television and movie piracy will reach nearly US$52 billion by 2022 — almost twice that incurred in 2016.

Not only can video virtualization and video blockchain technology play a leading role in keeping the pirates at bay, content owners (like movie studios) can have complete control and visibility over video distribution and revenue flows — for the first time.


Encouraging paid consumer content sharing

But, it’s not just about protecting against piracy. Blockchain offers the ability to commercialize people’s desire to share content too.

By actually embedding virtualized video within each block of the blockchain, content owners can manage video distribution and access with total confidence. This empowers rights holders to actually incentivise, not just securely control, peer-to-peer or consumer-to-consumer transactions of video content via the blockchain.

If someone shares a video via the blockchain, the smart contract governs access to that content. New viewers have to accept the licensing terms before watching the clip.

With the ability for content creators to easily monetize and reward people for sharing content legally via the blockchain, video blockchain can be a real win for both content owners and consumers.


Streamlined distribution, better monetization and royalty payments

Content owners and creators — everyone from major studios to “YouTube stars” — are searching for ways to maintain control and ownership of video assets, while safely maximizing customer reach and monetizing their content effectively.

With video blockchain technology, not only will content owners and studios be able to securely distribute video with guaranteed tracking, they'll also be able to better monetize it, with built-in payment gateways and automated royalty payments.

It becomes possible for a company or individual to receive micro-payments when portions of their IP are sampled or derivative works are created. This can have huge impacts for not only large movie studios, but indie producers and today’s YouTube stars too.

For example, instead of artists relying on YouTube payments or patron subscriptions, video producers could charge what they want for each view and receive payment instantly.

Due to the democratizing nature of blockchain, video payments would no longer need to be centrally collected, making transactions cheaper, the distribution of revenues automated, and realization of revenue faster.

Traditionally, it can take distributors and content owners many months before they start seeing the money and royalties hitting their accounts. With blockchain, micro payments can be made instantly to each stakeholder in the video distribution chain, based on predefined smart contracts.

As demand for more granular rights increase, blockchain will be even more vital for proficiency regarding sales transactions, tracking and reporting, and ultimately for the bottom line of video creators and rights holders everywhere.


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About Linius Technologies Limited:

Linius Technologies Limited (ASX: LNU) has invented and patented the Video Virtualization Engine™ (VVE), which is available on Amazon Web Services, Microsoft Azure and IBM Cloud.

Amazon, Microsoft and IBM are investing billions in virtualizing ‘video services’ (technologies) and Artificial Intelligence in the cloud. It is arguably the biggest battle on the internet, given that video accounts for nearly 80 percent of internet traffic.

Only Linius can expose the data that makes up the video file, making cumbersome video as flexible as all other forms of data. Accessing the data within the video file is the missing link for video cloud service providers, creating unparalleled value across the internet video industry.

Linius’ VVE-powered Video Hyper-Personalization and Search Solution enables anyone to instantly search the data within video, from across an infinite number of sources, and automatically assemble the results in a single stream on-the-fly. No human hands required.

Linius is revolutionizing the way organizations and individuals across the globe produce, deliver and consume video, enabling previously impossible hyper-personalized video experiences.

It’s a breakthrough set to disrupt entire multi-billion-dollar industries. Linius is initially focused on delivering its Video Hyper-Personalization and Search Solution to six core markets: News and Media, Sports Broadcasters and Rights Holders, Education, Corporate Communications, Security and Defense, and Sports Betting.

For more on Linius Technologies, visit


For further information or interview requests, please contact:

Lachlan James, Director of Marketing and Communications, +61 (0)431 835 658,

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Jodi Cutler
Head of Media Marketing Linius
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