When you buy a new video game, you indirectly pay licenses to the game developers and publishers. But the process at the end of which the participants receive their money is complicated and lengthy. Microsoft now wants to change this by using the blockchain platform Quorum.
Only recently Microsoft drew attention to itself, when the enterprise announced to take over GitHub. Numerous blockchain protocols are managed on the open source platform, which is why the purchase by the software giant caused little enthusiasm in the cryptoscene.
Microsoft wants to use the Bitcoin evolution to simplify license payments to video game developers
As The Telegraph reported on June 22, the use of Bitcoin evolution will replace the time-consuming manual spreadsheet system. Currently, game producers and publishers would have to wait 45 days before receiving the royalties. This process involves a number of middlemen, which unnecessarily prolongs it. With the help of the blockchain-based solution, both license management and payments to licensees are to be made in real time. Microsoft has collaborated with the consulting firm EY for this Bitcoin evolution purpose.
Safer, faster, more transparent
Microsoft is currently testing the implementation of the technology with Ubisoft, one of the company’s gaming partners. After a successful test phase, a large network of game publishers and retailers will use the blockchain solution. For this they will have to sign new terms and conditions with Microsoft via Smart Contracts. In the process, each purchase of a licensed product, whether online or in retail, will be stored on the blockchain. The license amount is determined according to the Smart Contract and the game publishers and distributors have access to all relevant data.
This blockchain solution is not limited to computer games. According to Microsoft, it can be used in any creative industry. Rohit Amberker, finance director at Microsoft’s licensing business, says:
“After the introduction of the blockchain solution, only a third of the effort is needed to process the same license fees and at the same time offer a faster and more reliable service.
In addition, Quorum’s blockchain application should enable it to process millions of transactions per day. Quorum runs on the Cloud-Coumputing-Service Azure and should also protect confidential business relationships.
The transparency of the blockchain enables Microsoft to automate numerous transactions between different parties. A large number of developers and artists are usually involved in the production of a computer game. With the automation of payments, all those involved – from the software developer to the songwriter of the soundtrack and the actors using the so-called motionscan technology to the designer of the cover – receive their share reliably. Paul Brody, Head of Blockchain at EY, is thrilled:
“The scope, complexity and volume of digital rights and licensing transactions make it a perfect application for blockchains. A blockchain can handle the uniqueness of each contract between digital rights owners and licensors, which can be handled in a scalable, efficient manner with a test protocol for subscribers.”