Lino, a California-based startup, is building a video distribution network with blockchain technology, which will increase the efficiency of content value, and directly reward the contributors.
The company raised $20 million fund in a private token sale led by Beijing-based seed investor ZhenFund, who promotes innovation among youth in China.
“We believe that blockchain has enormous potential to empower video creators by decentralizing how their content is distributed and ensuring that their earnings go directly into their pockets,” said Wilson Wei, CEO of Lino. “We want to eliminate the middlemen in video streaming.”
The existing traditional video platforms charge commissions and service fees, taking up to 60% of the total credit, while original content creators struggle to make pennies. For example, Youku, a leading video community in China, takes 70% of the advertising income generated by video content providers.
As per Livestream’s data, 81% of the internet users watched more videos in 2016 than 2015. Of all the live-video consumers, 45% said that they wouldn’t mind paying for a live-video streaming of their favorite performer.
The new solution will help video content providers, especially the live streaming broadcasters who earn lesser amount of credit despite creating the content that drives boom. Lino uses blockchain technology to efficiently recognize the content value, offer incentives to contributors, and promote the long-term economic growth.
Members on Lino can interact with each other without any middleman, and Lino doesn’t charge transaction fees from anyone. It provides LINO tokens as cryptocurrency, which can be used to pay content creators. The Lino cryptocurrency system rewards all the contributors including content creators, curators, application developers etc.
Lino prevents the system from frauds and bots, which can manipulate reward distribution. Plus, Lino uses auction-based content delivery network (CDN) to store video and live stream playback in decentralized manner.
Lino will use the funding to develop Lino Blockchain and the live streaming application called DApp. These are expected to be available later this year.