Verasity is a new video sharing platform that rewards all ecosystem participants for their activity through a patent-pending “Proof of View” (PoV) blockchain-based technology. Proof of View provides accurate and verifiable engagement metrics, thereby measuring the value of content and rewarding creators for their content’s value, not the size of the audience. Verasity’s disruptive protocol will liberate creators and power the future of digital entertainment to create an ecosystem that facilitates direct and transparent value exchange between all participants.
Online video will account for 82% of all consumer internet traffic by 2021. Although video creation and consumption by audiences of digital content has significantly increased in volume, content creators and publishers have only received a small portion of revenues as legacy intermediary platforms take a significant share of the advertising revenues out of the market due to their control over the distribution of content and the sale of advertising. This race to the bottom is caused by conflicting priorities between Creators, Viewers, Advertisers and large digital intermediaries like Google and Facebook.
Verasity’s solution is to build an ecosystem where Creators and Viewers transact directly on the Blockchain, removing the need for intermediaries. Verasity fundamentally changes the economic model of video sharing in the following ways:
- “Proof of View” – Their unique soon-to-be patented system enabled by blockchain, provides accurate, secure and auditable audience metrics, thus enabling accurate valuation of content.
- Direct Value Exchange – Viewers are repositioned at the centre of all content transactions, and the success of content is determined by the organic consumption/valuation of content by the viewer community, not by the monetization strategy of third-party intermediaries or advertisers. Value remains within the platform for all participants rather than being removed by third parties, intermediaries and their shareholders.
- Content Funding Marketplace: Through the creation of their Spark Marketplace, all participants within the ecosystem can provide funding to content channels in exchange for a portion of the channels future review stream. This marketplace provides participants as well as those outside the community the opportunity to grow the ecosystem and benefit from its growth. Sparks incentivises the creation of content by supporting content development, moderation and growth.
Verasity will feature an end-to-end technical stack that provides Content Creators, Advertisers and Consumers the tools needed to access, engage and thrive in the ecosystem. The main ecosystem components are highlighted below:
- Video hosting and distribution technology including next-generation video player with a prototype wallet for VERA transactions (already developed): Their video hosting platform includes content management analytics, recommendation surfacing engine and content moderation tools and is already developed. The current wallet is a prototype which will be completed once the blockchain development is complete.
- Channel Venture Backing & Sparks Marketplace (to be developed): This will provide monetisation opportunities for creators to fund their channels and content development. VeraSpark is a smart contract that entitles the owner to a share of VERA tokens collected on the channel while they hold the VeraSpark. In contrast, TotalSpark is a Smart Contract that entitles the owner to a share of future commercial transactions of the Verasity Foundation while they hold it. When the TotalSpark contract expires the original amount of VERA used to purchase it is returned to the owner, and the TotalSpark ownership is returned to the foundation. The Sparks marketplace will allow all participants to buy TotalSparks and to trade VeraSparks using VERA tokens.
- High-Performance Blockchain (to be developed): Verasity intends to build its own blockchain protocol based on Graphene, an Open Source C++ Blockchain framework originally developed as the foundation of Bitshares, a decentralized cryptocurrency exchange marketplace. It will be designed to allow for large-scale microtransactions and optimise resource usage so that speed and volume of transactions can be maintained as the ecosystem scales. All VERA token transactions will be tracked and stored on the blockchain using Delegated Proof of Stake (DPoS). Every video view will be securely tracked and stored on the Blockchain using Proof of View to ensure the integrity of engagement metrics. This will provide the security, flexibility and scale for the platform to grow.
Verasity’s mission is to give Creators and Publishers a variety of solutions to choose from to help them generate more value from their content while at the same time supporting the development of the ecosystem through participation. The value flow creates a level playing field for all participants and values content based on metrics not advertising value.
VERA tokens are the medium of exchange, reward and can be used across the ecosystem. Users earn VERA for watching videos, sharing and for watching advertising should they wish.
There are many ICO projects in this space currently; all have different models for valuation of content and engagement metrics to put users at the heart of their platforms. Verasity has a working platform and MVP in the form of its video player with built-in prototype wallet which works across all platforms and devices without any additional plug-ins or applications (unlike Brave browser). In comparison to many ICO projects, they are much further along their product vision roadmap having a working user interface and video hosting platform.
Their token metrics are well presented and thought out; but user adoption and marketing will require a huge campaign to engage with and promote Verasity to viewers, creator and publishers. Substantial amounts of video content are currently sponsored by brands to reach audiences, sometimes through third parties such as influencers or celebrities. As a brand, would I create sponsorship via creators or buy sparks through the platform to support channels that promote my content or campaigns? This is not addressed in the Sponsors section of the white paper.
Finally, Verasity does not address VR streaming via their platform. This is an exciting new marketplace which will affect video content production and delivery in future. I would like to understand if their platform can host VR streaming currently?
The unique feature of this project is the fundraising technology built into their ecosystem through the Sparks Marketplace to monetise content through “selling” portions of revenue streams of individual channels and the entire ecosystem through the Foundation. This enables secondary markets to be created and is a straightforward way for advertisers and/or sponsors to engage with creators to fund content development that benefits everyone. Verasity is also the only platform with patent-pending technology that verifies audience metrics (not the size of audience) which will be built on-chain.
By CeAnn Simpson