With growing concerns about security and lack of transparency in digital media, blockchain technology is becoming an attractive solution. Its key features include decentralization, transparency, immutable data storage, and a smart contracts system, enabling smoother and more secure operations. Originally used in cryptocurrency, blockchain now finds application in numerous industries.
The global e-commerce boom has bolstered the digital payments market which still grapples with security concerns. The growing accessibility of uninterrupted internet access has led to a rise in digital advertisement fraud and a drop in consumer trust. Furthermore, the film industry faces substantial monetary loss due to constant piracy and copyright infringement issues. However, blockchain has the potential to combat these problems.
This article explains the concept of blockchain technology and its role in enhancing security in digital payments, improving transparency in digital advertising and combating digital piracy and copyright protection.
Understanding Blockchain and Its Core Features
Blockchain is a distributed ledger or database that is decentralized and exists across a network. It facilitates the recording of transactions and tracking assets across business networks. Also known as Distributed Ledger Technology (DLT), blockchains convert and store all forms of data, including currency.
Here the data is stored in several network nodes (devices or computers running the blockchain software) in different locations. Supplementary nodes prevent the altering of any single node’s data by comparing block hashes, thus ensuring no single node is able to change the data within the chain. Due to this distribution, the data becomes irreversible, enabling traceability and transparency.
The key benefits of blockchain technology include:
- Enhanced security
- Greater transparency
- Instant traceability
- Increased efficiency and speed
- Automation
- Improved accuracy
- Cost reductions by elimination of third-party verification
The technology finds application in several industries such as currency (crypto), banking and finance, supply chain, food, healthcare, pharmaceutical and insurance.
Enhancing Security in Digital Payments
As per the analysis of Consegic Business Intelligence, the Digital Payment Market size is estimated to reach over USD 5,701.37 Billion by 2032 from a value of USD 1,646.02 Billion in 2024 and is projected to grow by USD 1,893.23 Billion in 2025, growing at a CAGR of 16.8% from 2025 to 2032.
With the growing global demand for convenient, fast and secure digital transactions, the finance industry is increasingly adopting blockchain technology. It is utilized in cross-border payments, Peer-to-Peer (P2P) transfer, digital identity verification and trade finance. It enables quick and inexpensive international payments and transactions through the application of encrypted distributed ledgers. These provide real-time verification, eliminating the need for intermediates like correspondent banks and clearinghouses.
Blockchain is mainly used for its transparency and security features. All transaction data is stored in nodes, immutable and chronologically linked, tampering records is prevented as all changes are visible.
Additionally, blockchains aid trade finance by minimizing the manual effort required to record details, providing multiple user access to a single document and eliminating the probability of manual errors. It also ensures real-time, easier and secure peer-to-peer transfer of funds globally.
Improving Transparency in Digital Advertising
The digital advertisement sector faces several issues such as ad fraud, lack of transparency, and intermediaries’ fees. The different types of ad fraud occurring include click fraud, domain spoofin,g and bot traffic. To combat these frauds, blockchain provides secure and trustworthy mechanisms of operation. This involves immutable record keeping, smart contracts for automated verification, decentralized operation and enhanced transparency and auditability.
The blockchain technology works in such a way that all users are able to see the different blocks, ensuring transparency across the ad supply chain. This enables advertisers to effectively use their budget to reach their target audience.
An example of a blockchain-powered advertising solution is the Basic Attention Token (BAT) integrated with the Brave Browser. It rewards users with tokens (BAT) for their attention to ads increasing engagement and providing advertisers with better ROI through accurate targeting and minimized fraud. It also ensures greater transparency and user privacy protection as well as fairer distribution of revenue to publishers. Ultimately, it shows that blockchain holds the potential to create a more equitable, efficient and user-driven advertising model.
Combatting Digital Piracy and Copyright Protection
Digital content of all formats faces widespread issues of piracy and copyright infringement. The features of blockchain technology make it an attractive solution for copyright protection. Its applications include blockchain-based digital rights management (DRM), anti-piracy solutions for the film industry and automated royalty distribution.
A blockchain-incorporated DRM ensures secure and transparent management of digital rights where creators and owners maintain full control of their property. It streamlines licensing and payment processes, simplifying the monetization method. Companies like Sony, Blockai, Ascribe, and Ujo Music are utilizing this technology to improve their operations.
The film industry loses considerable amounts of money to piracy each year but blockchain has the potential to minimize this loss. With secure and immutable data storage that is decentralized and accessible, the technology makes it difficult to conduct illegal activities on copyrighted content. For instance, Custos uses forensic watermarking to prevent piracy while Movie Coin tokenizes movie investments making it easier for new investors.
Blockchain can automate royalty distribution by using smart contracts where creators generate self-executing agreements to distribute royalties to the rights holders every time the content is licensed. It removes the need for intermediaries by operating a peer-to-peer network, enabling greater accessibility and lower processing fees overall.
Researchers at the Nanjing University of Aeronautics and Astronautics China developed a blockchain-integrated image copyright protection system, called BB-RICP that enables users to register and authorize copyright in the system to protect their images. They also introduced a spread spectrum watermarking technology into the blockchain to ease digital forensics and retrieval of copyright history. While this is a successful copyright protection system, it is yet to be commercialized.
Conclusion
In conclusion, blockchain holds tremendous potential to revolutionize digital media by enhancing digital payment security, improving digital advertising transparency and minimizing digital piracy and copyright infringement in the film industry. In digital payments, it enables fast and low-cost international payments and transactions, real-time verification and reduces the manual effort required to record details. Whereas in digital advertising, it minimizes ad fraud and optimizes the use of the allocated budget to reach the target audience. Blockchain streamlines licensing and payment processes, secures copyright content and automates royalty distribution using smart contracts in the film industry. As the technology evolves, its integration into different digital media will create a more secure and equitable system for all stakeholders.
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