Considering that more than 6.8% of the world’s population has adopted cryptocurrencies in recent years, it’s no surprise that large industries are very interested in digital assets. Bitcoin, Ethereum, and Binance Coin have something in common: moving large amounts of money is now easier and faster thanks to the power and relative privacy of the different blockchains.
That’s a good thing for the film industry, since it’s arguably an industry that requires a lot of cash to operate. While it’s unclear whether Hollywood fully understands the power of web3, DAOs, and NFTs, many major players recognize that digital currency owners are clearly on to something. This is why a group of people with cryptocurrency could provide significant funding for a blockbuster action movie. Let us show you how.
How Crypto Crowdfunding Can Help Filmmakers
For film directors and producers, the most difficult task is not making the film itself. It takes months to raise money to make a movie with an eight-figure budget, like The Avengers or even Civil War, which is set to be released in 2024. Where is the money?
Basically, industry players now have the option to launch crowdfunding campaigns in the digital currency of their choice (preferably Ethereum) since it is tied to smart contracts and runs on a versatile blockchain. For example, video slots like Sands of Destiny can be played using cryptocurrency. Cryptocurrency experts say that while Bitcoin is still considered the gold of cryptocurrencies, manipulating large amounts of ETH is a better option.
Is The DAO the next big thing in film and animation?
Looking at the trailer for The Rise of Blus, a noun movie, it does feel like crowdfunding was done right. Three things I have to say about this wonderful animated short. First, it was created with a $2.75 million budget raised with the help of thousands of contributors. These contributors are regrouped into something called a DAO, which stands for Decentralized Autonomous Organization. These are cryptocurrency enthusiasts who want to join forces to participate in various projects.
Blu-ray Rises features creative input from veterans of Pixar, Netflix and Marvel. It’s visually stunning, and although it’s just a short film, it speaks to the infinite potential of people joining forces to create works of art. Apparently, many other film projects have emerged from DAOs, but we are still waiting for a blockbuster movie to be paid entirely with cryptocurrency.
Smart Contracts and NFTs: New Ways to Simplify Earnings
2022 has been a weird year for tech, as NFTs (a term derived from the entire web3 glossary) took over the world and generated millions of dollars in revenue before crashing dramatically. For many people, the concept of non-Fongible tokens is still unclear because it encompasses many things, such as video games. However, purchasing an NFT—essentially buying a certificate of ownership engraved on the blockchain—could be very convenient for film lovers and contributors.
As a movie buff, it’s easy to imagine a scenario where someone gives a movie studio a large sum of money. In exchange, he received an NFT, a digital certificate that verifies the fact that the person contributed to the film’s budget.
In many cases, owning an NFT from a movie could mean you can make suggestions for work being done. What if this movie makes a bank? In this case, every contributor can receive cryptocurrency rewards thanks to smart contracts (blockchain-based contract systems). Smart contracts are primarily based on the Ethereum blockchain, and they are responsible for many DAO and other crowdfunding operations. The film industry may well be next.
