When you click “buy” on a digital product, what exactly are you purchasing? You may think you own a copy of a song, an e-book, or a video game, but if that media can disappear from your library in an instant – can you really say that it’s yours?

In the wake of the tech boom, the concept of digital ownership is quickly becoming something of a paradox. Where once you could buy something and own it forever, now “owning” a digital product is more akin to renting.

So, does true ownership have a place in the digital world? Let’s talk about it… 

Do You Own the Digital Media You Buy?

I’ll save you the guess work – you don’t. At least, not in the way you think… 

Time and time again, digital ownership has been shown to be more illusion than reality. In the physical world, buying something like a book, video game, or movie means you have the freedom to use, share, or even alter it – at least within certain boundaries. You own the object, and while there are still limits, you’re in control of that physical item (just not the contents/IP it contains). 

But with the decline of physical forms of media, consumers are finding out that buying digital goods really means paying for the privilege to access its content. And it’s a privilege that can be revoked at any time. 

In early 2024, for example, Ubisoft made headlines after announcing that they were switching off servers for their racing game, The Crew, citing declining demand and licensing restraints.  What sparked outrage among gamers, however, was the company’s decision to delete the game from players’ libraries without warning. In a statement, Ubisoft’s Director of Subscriptions, Phillippe Tremblay, said that gamers need to start “feeling comfortable with not owning your game.”

It’s not the concept of digital licensing that’s the issue. The truth is we’ve never owned the media we buy, but simply a license to access the content. The real problem lies in the fact that consumers have little to no protection when it comes to maintaining access to the digital products they purchase.

How is Blockchain Revolutionizing Digital Ownership? 

Ownership, as we know it, is defined as “the state or fact of legal possession and control over property, which may be any asset, tangible or intangible.”

Digital ownership refers to the idea that users should have complete control over their digital assets, including data, files, and digital currency. With digital ownership, users can create, trade, and sell their assets without intermediaries. They can also – and this is a big one – determine who can access their data and what they can do with it. How’s that for sticking it to the man…

The key part of the definition is control. As we’ve already established, when it comes to your digital assets, you don’t have much control. Think about everything attached to you in the digital realm. Social media posts, pictures, items in your game inventory, your personal data, etc. You have access to all of this, but you don’t control it, at least not fully. 

Until now, data, and digital “possessions” have been kept compartmentalized in largely corporate silos. Now, the beauty and the brilliance of blockchain is that it can provide the decentralized infrastructure to connect these silos. This means users can not only get access to, but actually own, control, and transfer their digital assets freely & securely. Pretty cool, right? 

But wait – there’s more!

3 Benefits of Digital Ownership Through Blockchain

While the prospect of control over digital assets and data are attractive enough benefits on their own, there are a few other perks to the implementation and mainstream use of blockchain technology: 

1. Provenance & Authenticity. With blockchain, authenticity and origin of an asset will never be called into question. All transactions are recorded on an immutable ledger, which creates a clear chain of ownership (AKA no more ‘he said, she said’ BS). Take the art industry for example, where provenance is directly tied to value. By using blockchain, creators can mint unique digital assets – non-fungible tokens (NFTs) – that can be easily verified and traded. Now, that’s a guarantee of authenticity, baby. 
   
   

2. Decentralization & Peer-to-Peer Transactions. Blockchain removes pesky middlemen, allowing direct peer-to-peer transactions. No middlemen means lower costs and minimal security risks, which, in turn, means transactions are faster & more secure. 
   
   

3. Enhanced Security & Transparency. In case you’re new to Web3, security and transparency are really the bread and butter of blockchain tech. All transactions are recorded across multiple nodes making data tampering nearly impossible and providing real-time tracking of asset history. Meanwhile, cryptographic algorithms protect users against fraud. Who needs trust when you can look back and see the proof in the meticulously maintained, hyper-secure pudding? 
   
   

Now, here’s what all of this means for you and the digital goods and media you purchase… 

Blockchain’s Impact on Creative, Media & Entertainment Assets

Buying something on the blockchain means that asset is yours, permanently. No one can revoke your ownership, or remove it from your wallet. It’s yours to do with as you wish (within the bounds of copyright law). 

This applies to music, media, and any other digital item. For example, if you buy a music NFT, it’s yours to keep, listen to, or trade – just like a physical CD. Even if the artist decides to pull their music from streaming platforms, you still own the right to access it, ensuring your purchase remains intact. 

But it’s not just the consumers who benefit… 

Blockchain is a Win-Win for Creators and Consumers Alike

Assets like the ones mentioned above get put onto the blockchain through a process called tokenization. In other words, it’s the process of creating a unique & authentic digital representation of the asset in question. The tokenization of digital media like videos, music, art, etc., can revolutionize the entertainment & creative industries in several ways:

• Increased Accessibility: Tokenization democratizes access to valuable intellectual property. This means that more individuals can get their virtual hands on, and participate in, the success of their favorite content.
  
  

• Enhanced Transparency: Blockchain records every transaction, creating an immutable ledger that builds trust between creators, consumers, and investors. 
  
  

• New Revenue Models: Tokenization enables innovative revenue models such as fractional ownership, micropayments, tipping, and even secondary sales. It’s a whole new world for creators where they can monetize their work in ways that weren’t possible before.
  
  
  

The Future of Digital Ownership

The rise of tokenized forms of media is only the start of a broader shift in digital ownership. As more creators, investors, and audiences embrace this new model, the way we create, distribute, and consume content will evolve in parallel. 

With the growing trend of tokenization, it follows that we’ll see the development of a more accessible, transparent, and equitable ecosystem. This could lead to a more diverse and innovative media landscape where a wider range of voices are heard and supported. Creators will have more control over their intellectual property, and fans will gain new ways to connect with and support the content they love – without the fear of losing access in the future. 

If there’s anything that can be said for technology it’s that the only constant is change. The path from obsolescence to innovation is a circle that never stops turning. Ownership in the digital world may have reached a limit in the realm of Web2, but it has a bright future in Web3 that is only just beginning.  

Want to explore the frontier of digital ownership first-hand? 

Check out our Music Rights Marketplace! Artists list their tokenized streaming royalty rights (known as Stream Tokens) and fans buy, enabling them to claim a percentage of the song’s royalties with every stream. Artists get direct support, while listeners get to share in the success of music they enjoy – it’s a win-win! Discover more here.