By now, everyone has heard of Bitcoin. Bitcoin is all the rage. For a few days in January, even the news reported on the massive spike in value of Bitcoin, and Warren Buffet came out with a statement predicting its downfall (article here). To be honest, I rarely pay attention to the stock market, and I was only aware of the concept of Bitcoin in the vaguest possible way of it being a “fake currency.” Well, when that article came out, I started paying attention. I found a few more, read up on it a bit, with most of what I found going way over my head, but what I retained was this:
Bitcoin is like an apple tree. It’s one of several different kinds of trees, that just happens to have grown the biggest. But all those trees are rooted in a framework that is very, very interesting to me. It’s essentially a new system of virtual accounting that adds a third entry to the standard double-entry style of bookkeeping. That’s already confusing, so let’s break it down:
In traditional accounting, every time money changes hands, two entries have to be made in the books. The first is the money going out, and the second is something else coming in. That way, there is always a record of how much money is being spent and what it’s being spent on. In this new way of accounting, the third entry marks the transaction, which adds additional details. It’s not just what was bought and for how much, it’s who bought it, when, and where. As long as the purchased item stays within this realm, this record keeping then continues down the line each time it changes hands, so you can track a particular item from its most recent buyer all the way back to the production facility, and farther back to the facilities where all its different components and ingredients came from. It essentially records the total life of that item.
As soon as I read this, it hit me that this could potentially be the solution all authors have been waiting for: an end to digital piracy. If every single eBook were to be tracked this way, then every single pirated eBook could be tracked back to the original pirate. Not only that, the system could identify every single pirated copy and there is a lot we could do with that info, starting with disabling those copies and making them unreadable, and ending with having hard evidence for prosecution.
Fast forward about a month. I received an email newsletter from IngramSpark, telling me they will be featured as an exhibitor at the San Francisco Writer’s Conference. Since that’s in my neck of the woods, I checked out the event, browsed through the exhibitors, and found something I never heard of before. I clicked the link, and discovered that someone out there had the same thought I did, and is actually putting it into practice. There is this platform called Publica, which doesn’t seem to be open to authors just yet, but will be soon. It is built on, and will operate on the concept of cryptocurrency (like Bitcoin), and promises the elimination of the middleman, taking an author’s books directly to the reader.
Of course, in practice, that just makes Publica another self-publishing platform. It’s still questionable whether they would be able to compete with Amazon, Barnes & Noble and other eBook platforms, and I still have a lot of unanswered questions. I submitted those questions to them, and am waiting for a response but, if I understand this correctly, and if it actually works, then I want in. Now.
The concept of this new system of accounting is still in its infancy, but more and more companies are embracing it, and each time a company announces it, their stocks go up. The problem is, each of them has their own cryptocurrency, which is going to cause issues in the future, if every time you want to buy a product from one of them, you have to do a currency exchange first. My prediction, however, is that cryptocurrency will be the future. Once enough companies jump on board, the normalization will begin, and a unified currency will replace all the others.
For now, I see Publica as a pioneer. Whether or not they’ll be able to make it work in the long run isn’t even the point anymore. Could be in six months someone else will have put Publica out of business with a better, more streamlined, more accessible system. Could be this is a sign of a brand new industry being born. Publica is opening new doors, forging the path for others to follow. The point is, the possibility is now there, and it is real, and I really, really hope it’ll help right some imbalances for authors, artists, musicians, and others who rely on the sale of their own unique products for a living.
It will also upset a whole lot of people for whom this means an end of an era, and those people will fight tooth and nail to keep it from coming to fruition. The ultimate potential for all of this is an end to money as we know it, which would put a lot of banks out of business, and majorly disrupt our stock markets, etc. (Plot bunny, anyone?)
Then again, it could also be nothing. Reminiscent of the dotcom era, it could all be a massive bubble that will eventually burst. I guess we’ll just have to wait and see. I will definitely be keeping an eye on this, for sure.
ETA: Here are the responses I received to my questions:
1. Publica is a distribution channel, so where does it distribute to?
Authors can use Publica and blockchain to publish their books. Authors can sell their books to Publica tokenholders / platform users and protome a book to their existing customer base. Once a book is published on the platform, readers will be able to find a book using search or by entering a direct link (that can be promoted by author). Authors can continue to use their existing promotional channels.
2. If my books are already published through another platform, will there be a conflict?
No, it’s not a problem. If there are no legal limitations that allow an author to publish a book only on a specific platform, a book can be distributed through several platforms.
3. Do readers need a special app to access the books? If so, what format will it support/require?
We are currently developing e-reader app that will serve double duty as wallet and e-book reader. The app will support popular e-book formats (like ePub).
Feel free to check our live AMA session, CEO Josef Marc answering question about supported formats: https://www.youtube.com/watch?v=DjAZg8_i8fo&t=2872s
4. If everything is done in PBL currency, how does an author redeem earnings in real currency?
Authors will be able to exchange PBL tokens to fiat money (for instance, USD or EUR).
5. Does the platform have protection measures against digital piracy?
By using a token as an access key to digital content, only actual tokenholders can access their purchased content. Readers (tokenholders) can give away or sell their tokens, and ownership/access to the content will be transferred to the new tokenholder. Blockchain technology is making the whole process transparent and decentralized.