A common criticism of blockchain technology thus far has been the predominant theme of pie-in-the-sky ideas with little real-world utility. So many ICOs promise solutions to problems that do not exist and have created a blockchain technology, often merely to gather up venture funds with little forethought of project execution.
Fanship XFS is a token that has real-world utility. This token will first be deployed with the intention of being used as a method of value transfer for the purchase of digital goods such as IP rights, beginning in South Korea’s K-pop industry. It will act as a unit of account, measuring a fan’s “stake” in a chosen K-pop star or group and transferable as value in exchange for music rights, concert access, and merchandise.
XFS will also be used for voting contests – an activity that young Korean K-pop fans love participating in – casting votes for awards, song rankings, and for auditions on TV programs and live streams. Fanship’s partners have an extensive history developing apps used for voting. Over the past three years, nearly one million music fans used their digital apps to vote for the Seoul Music Awards festival, the Melon Awards, and the Golden Disk. This has continued to grow in popularity and has spread globally, with the overseas fan demographic growing by a tremendous 47% in 2017.
As of now, these voting systems are operated through centralized systems that sell voting rights to the user. The centralized system then collects payment and calculates the vote, but not in the transparent and open manner that blockchain technology enables. The flawed legacy system brings into question the validity of votes and the integrity of funds raised due to the veiled nature of a centralized voting system. Not only that, huge inefficiencies cut into profits as service providers take a substantial amount of profits – around 30% – off the top for themselves.
Fanship allows for fans to openly and transparently use their purchased tokens to vote in a direct and transparent manner that is visible on the blockchain, removing issues of fraudulent or corrupt behavior and increasing profitability for performers and the associated industry. XFS removes the problem of trust in such a way that everyone can plainly see the delivery of a token from a fan to their designated performer in an immutable open ledger.
XFS can be extended to so many more use-cases in the music industry. Stars could perform fund-raisers for donations to charitable causes without any concerns regarding misuse or misappropriation of funds. As of now, administrative costs in charitable operations can consume massive percentages of intended donations, leaving donors feeling as if their donation was wasted and not used for its intended purpose. Fans could share gifts with their favorite stars through direct payment via the token and stars could choose to give gifts on their behalf via the token system to a chosen charity, all without concerns regarding trust or corruption.
Not only can XFS transform the music industry’s financial system, it can transform the way new talents are discovered and rewarded by enabling direct support from fans for young performers who may not yet have the recognition to be signed to record labels or to have massive contracts. It opens up a world of possibilities to the ways in which talent can be discovered and rewarded.
Unlike many cryptocurrency projects that have little practical use-case and are merely attempting to find solutions to problems that do not exist, Fanship XFS addresses genuine problems with centralization and bloat in the music industry. Fanship will emerge as a real-world use-case token, making the music industry more engaging and authentic whilst reducing problems with corruption and disproportionate wealth distribution.