Today we’re setting out to explore the possibilities of an industry ripe for revolution with the help of GalaChain. Let’s talk about audiobooks.
As GalaChain marches steadily down the road toward full decentralization, becoming more convenient for builders with every step, we can envision the ways that web3 is prepared to solve some of the most plain-to-see problems in various world industries. It takes a whole community to think outside the box on this level; we hope these concept explorations will inspire you and open your mind to a world of possibilities with GalaChain.
To be completely clear, Gala has no current plans to build an audiobook platform using any of the ideas explored in this blog. They are merely being presented in this way to encourage our community to think outside the box and imagine what GalaChain can do by honing in on a single example use-case. If anyone from the community is inspired to build such a platform, we would be happy to see it and support however we can.
The Digital Ownership Problem Summarized
Going back hundreds of years, our ancestors have always had the ability to purchase and collect books, adding them to a personal library. Owning a book means that you can do with it as you please. You can read it over and over if that’s your thing, or you can loan it to a friend, knowing with near certainty that you’ll never see it again. 😉 You could even hold onto it, taking good care of it and eventually passing it down to your children or great grandchildren in hopes that it will have increased in collectible value. These are some of the basic freedoms that have always come with collectible ownership.
Unfortunately, we’ve been convinced to give up a lot of these freedoms when it comes to digitized representations of the exact same collectibles. Gamers now opt for digital copies of games over physical, even though those games are 100% account locked. Instead of buying CDs or records, many music fans are perfectly willing to simply pay for access to a song they want to hear. California has even recently passed legislation that will require sellers of digital games to include disclaimers stating there is no ownership involved whatsoever.
Many would say that we now live in a rental economy where few things can actually be owned at all. There is a ghost of ownership, but you better believe that if you violate those sacred terms and conditions, your illusory ownership is as good as revoked.
Let’s take a look at one rapidly growing industry where this problem has yet to be solved, proposing an idea of how GalaChain could tackle the issue with the right innovator at the helm.
Why Audiobooks
As a person who spends most of waking hours in front of screens, I love audiobooks. When I was younger, I never thought my eyes would be under such pressure and strain on a daily basis, but I’ve always loved to read. So for the past few years, audiobooks have been my jam. Reading can still be a fun leisure activity that relaxes me when I’m not working, and I can listen to books while getting things done around the house in the early mornings and on the weekends. Basically, being read to is a legit form of entertainment and education – the more I do it, the more I want to do it, and all the while I can rest my eyes.
Some people spend a lot of time commuting or waiting to pick up their kids from school. Whatever the reason, lots of people have gotten accustomed to audiobooks in their busy lives, especially with advances in audio technology, headphone comfort levels and sound quality.
Before you start thinking that I’m here to simply sell you on the idea of audiobooks for your enjoyment, let me shift gears with a simple question…
My Audiobook “Library”
So what happens to the audiobooks in my collection once I’m done with them?
To answer just as simply, nothing. I mark the title “completed” and remove it from my device to make room for the next, and that title is then consigned to the audiobook graveyard known as “my library.”
In my opinion, “library” is a terrible name for this graveyard of used audiobooks. “Bookshelf” might be more fitting. Sure, I can pick up an old book off the shelf and read it again at any time. But what happens when I want to recommend that book to someone else, loan it to a friend, give it away or even sell it? I’m basically out of luck for anything except the read it again option.
Although gen z and gen alpha readers may find this difficult to grasp, libraries were created to store knowledge and allow people to borrow books. By merely presenting my amazing library card, I could actually walk out of the building with books that belonged to the library, free to read and reread them as long as I brought them back before the due date.
When purchasing from a bookstore, I would similarly leave the building with a fresh and new book that actually belonged to me. I could read it greedily, loan it liberally, sell it desperately or toss it onto a coffee table to collect dust and impress my friends. I could even clumsily spill a milkshake on it and completely ruin it for future readers. The point is that it’s my book.
If you’re a listener of audiobooks, you understand this: You have completely given up ownership for convenience. So have I! How did they ever convince us to make that trade? The power and connectivity of the digital world should have added benefits to ownership, not subtracted freedoms.
How Blockchain Could Solve It
Even while the popularity of audiobooks is on the rise, the leading publishers are desperate to keep the average user in the dark when it comes to potential ownership of their items. In the same way that social media companies in the web2 era didn’t want users to understand that their attention had intrinsic value, publishers of digital audiobooks (I’m looking at you, Audible) want to keep you thinking that ownership isn’t really necessary.
Ownership at the Core
Even if you’re brand new to the world of web3 tech, you probably already understand that ownership lives at its core. Thanks to the massive public data ledgers left behind by decentralized networks and the seemingly simple act of tokenization, ownership of digital items can now be represented and attributed to specific users.
Using the same technology that allows you to hold a fungible cryptocurrency like Bitcoin in a wallet, web3 gives you the ability to own tokenized representations of digital goods. The GalacChain ecosystem demonstrates this in many ways, allowing users to own and exchange in-game items, music tracks, or even moments from films as NFTs.
Tokenized Titles
Let’s imagine a more decentralized approach to the publication and distribution of audiobooks. Without sacrificing the convenience of listening on your favorite device, blockchain has the power to truly elevate the audiobook industry, putting control back into the hands of the user.
A tokenized audiobook would mean that you can do what you want with it. So what would most users do differently if their audiobooks were tokenized with real ownership? Here are a few considerations to explore:
- Loan it to others once completed
With tokenized titles, you would actually own the books in your library, making it more closely resemble an actual library. But lending your digital books would actually be even safer than lending physical books, which are notoriously kept and forgotten by the borrower and run the risk of quality degradation. When your audiobook is loaned via blockchain smart contract, you can call it back whenever you want with no concern of having it returned with ripped pages or coffee rings.
Plus, consider the possibilities of programs that would allow owners to collect a fee to borrowers of their titles. Such systems are easily manageable by blockchain smart contracts, giving owners a new level of incentive for keeping larger collections and giving non-purchasing users a way to enjoy audiobook content for much lower prices by renting instead of owning.
- Sell it back to the dealer
This aspect of ownership should not be overlooked in its potential for the operators of a tokenized audiobook platform. By offering a simple and convenient buyback program, the platform has the potential to sell and resell the same tokenized items for the full retail price again and again as time goes on.
I have often considered that failure to offer a buyback program is one of Audible’s biggest oversights. For example, while I may spend $10-15 per credit to purchase Audible audiobooks, there are many times where I would be happy to sell certain books back to them for a fraction of that price. There are probably at least 20 books in my Audible collection today that if given the opportunity, I would let them buy back for as low as $2 each of non transferable credit.
Presuming that tokenized audiobooks would be limited in supply for each title, the platform can benefit immensely from undercutting the secondary market with a standard buyback rate, knowing that they can simply sell that token to a new user.
- Sell it on the secondary market
Secondary markets and the liquidity they provide are key to an effective decentralized platform with tokenized ownership. Creation of a peer-to-peer secondary market would allow users to set the latest pricing in a free market situation. If I’m hoping to score a copy of a massively successful release but none are available in the retail sale, I can always check the secondary market. Additionally, if I’m hoping to pay less for a title still available in its primary sale, the secondary market might have what I’m looking for.
The peer-to-peer market is a powerful tool for any web3 creator, who can take a percentage of every transaction. Plus, the author of the title can receive a portion of this transaction as an additional form of ongoing royalty.
The addition of a secondary market gives collectors a new gamified experience that allows them to scout out and speculate on which titles they think will be successful in the long run. While physical books can take multiple generations and diligent care to grow in collectible resale value, limited supply tokenized audiobooks could grow in secondary market value much more rapidly, especially if there is no other way for users to experience that title. In this gamified and ownership enabled ecosystem of audiobooks, a “best seller” could be a veritable gold mine for not only its author, but the platform operators and early collectors as well.
- Buy more freely in the first place
Let’s face it: “Buying” an audiobook that you can’t transfer or get any value from after your purchase is quite a commitment. Tokenization would elegantly solve this problem, inviting users to purchase more freely knowing that their owned items will retain some sort of value in the future.
The difficulty to get users consistently buying new audiobooks is evident in Audible’s subscription-based approach that rewards Credits regularly to subscribers. Having already collected their money, Audible can in this way ensure that their users are consistently buying new books, even while subliminally it seems as though they are merely redeeming their credits.
Because of the limited nature of tokenized titles and the fact that their journey has not ended with their purchase, it will not be necessary to convince users to pre-buy their audiobooks.
With proper implementation of a rental system and a thriving secondary market in place, purchasing audiobooks could become a low-commitment activity. As a reader, I would be encouraged to buy more audiobooks with an experimental mindset, knowing that if I didn’t enjoy the content after the first few minutes I could simply list it for sale or offer to load it out to others who would find it more enjoyable.
Audiobook Nodes
Another specialty of GalaChain is its ability to host independent node networks to power various DApps and platforms built on the chain. For example, Gala’s Founder’s Nodes represent the backbone of the whole decentralized ecosystem, but secondary and more specialized node networks are popping up all over the place.
When you look at the customization potential of these different node networks, it becomes easy to see how such a network could lend itself well to a publication platform for tokenized audiobooks.
- Common Ground World Nodes allow players to operate Common Ground World Guilds, powering gameplay for additional rewards and letting them manage a library of in-game items from which Guild members can borrow what they need.
- Last Expedition Nodes let owners run their own custom server of the game, tweaking the difficulty as they please and adding OP Mods (creatures, etc.) to make their server more attractive to players.
- Gala Music Jukebox Nodes let licensed community members power the decentralized world of music to collect more $MUSIC rewards for hosting NFT tracks.
- Gala Film Theater Nodes host and distribute video content via the Gala Film DCDN, accumulating regular $FILM rewards for operators based on the platform’s popularity.
Crowdfunding on Steroids
When nodes sold as licenses are used to elevate the reward experience for operators, they can easily become a powerful source of revenue for a startup when they need it most.
Development of decentralized platforms has often taken the form of some sort of expanded crowdfunding program. By constructing a thorough plan and pre-selling components that will unlock various levels of rewards for owners, the creators of the platform can sometimes acquire the funding needed for operations without resorting to a token sale or investments from a venture capital firm.
Offering limited Node licenses that will power the platform and generate rewards for their operators is an ideal way to generate funding in the early days. With GalaChain, this is especially true now that node licenses can be tokenized on-chain.
Node Possibilities
There are many different ways that a node network could be used to not only power the network for a tokenized audiobook platform but also to unlock enhanced rewards for operators of the nodes. Here are a few examples to get you thinking about the possibilities:
- Node ownership is required to run a rental service
The main benefit to owning and operating a node could be the ability to manage your own rental library. While non-operators enjoy the abilities, to transfer or list their tokenized books, no operators will have the exclusive ability to put their items up for rent, setting a daily or weekly fee as they see fit.
Such a feature would most likely be presented as a Library, using a more true expression of the term than a typical web2 audiobook platform. By turning a node operator into a Librarian, we are setting them up to run their own book-loaning business. This also incentivizes the node operators to invite more users to the platform in order to create demand for their rental services as books sell out more quickly and certain titles grow in popularity.
- Node owners receive free copies of new titles
Another possible perk that could accompany node ownership is the issuance of free copies of all new audiobooks as they are released. This system would make node operation one of the most effective ways to build an audiobook NFT collection. This benefit would prove especially powerful when new releases begin to sell out quickly and some people who wish to purchase do not make it in time.
As the platform continues to scale and more nodes are needed to power the network, node operators could be required to declare a specialty genre for which they will receive all new releases. With a shift to a system based on genres and interests, node operators could also upgrade their nodes to gain free release access to additional genres.
- Node owners receive discounts on all purchases
Another great way to reward node operators for powering a decentralized ecosystem of tokenized audiobooks is to give them a lifetime discount on the platform. The discount could be upgradeable, or adjustable based on the amount of uptime for that user’s node.
Another approach to this same concept would be to offer node operators a regular allowance of credit for use on the platform. This allowance would likely take the form of the platform’s native token, which would be minted on GalaChain and able to be exchanged on GalaSwap.
Audiobook Tokens
Within a decentralized platform for audiobooks, there is a lot of room for fungible tokens within that ecosystem. Of course, transactional activity on GalaChain will always come with use of the chain’s core token, $GALA, but new tokens could easily be created through GalaSwap for other purposes within the developing audiobook ecosystem.
Using GalaSwap’s Project Token Creation interface, creators can easily burn $GALA to create new tokens, reserving the right to issue them as they see fit through their channel. While the audiobooks themselves will comprise the non-fungible tokens on the platform, there is an entire world of possibilities in using various dedicated fungible tokens to support platform operations. For example, a specific token could power the secondary audiobook market, being used as the sole method of payment in peer-to-peer transactions and given to authors as their royalties with each transaction.
Another token could be used to power an achievement system for which users generate rewards daily based on their platform interactions.
A Road to Publication
For new authors, the world of self-publication can be brutal and unforgiving. Mainstream platforms like Amazon are quick to accept your self-published e-book or audiobook because they are the primary beneficiary of having more content available on their platforms. Attracting the readers and reviews that are often necessary to get the attention of potential publishers is a daunting challenge of its own.
Additionally, one of the major challenges facing a web3 creator looking to break into the audiobook industry is in finding quality audiobook content to release on a brand new platform. By targeting new authors who would otherwise be trying their luck with self-publication, this platform could support those authors in a more impactful way.
A new self-published author may have to hand out numerous copies of their book to friends and family so they can begin to gather reviews in hopes that their book will be discovered and eventually paid for. This is an uphill battle, but by featuring their release as a limited–supply and incentive-packed NFT sale, an effective web3 audiobook platform can ensure that the content will make it to readers and it will get its share of attention.
By seeking partnerships with traditional publishers, this platform could potentially present promising content for actual publication based on the proven success of its initial NFT sales. If the platform plays a role in the “discovery” of a new author by traditional publishing houses, the platform could theoretically be entitled to a small share, acting as an agent to the author. Over time, this agent fee could come to represent a large portion of the platform’s revenue.
Restoring Ownership
Even with massive entertainment industries like games, music and film always growing, books still stands as a giant in terms of worldwide interest and revenue.
In 2023 in the US alone, an estimated $31.6 Billion was spent on books, including physical books, ebooks and audiobooks.
Of that massive total, 70% was spent on physical books, with only 15% for audiobooks.
In a digital world, it would seem that ebook and audiobook portions should be higher. The fact that theirs is such a small share relative to physical books is evidence that consumers simply aren’t buying the illusion of ownership presented by companies like Audible.
Perhaps if ownership re-entered the equation, these numbers would shift drastically. Basically, whoever brings the ebook/audiobook industry into alignment with the empowerment of blockchain may be in a position to tap into a Billions-per-year industry.
Ultimately, decentralized publication of exclusive audiobooks lends itself perfectly to blockchain development in a multitude of ways. It could assist with the careers of aspiring independent authors and restore ownership to an industry that became more restrictive in the web2 era.
GalaChain was built for stuff like this. 😎
Thanks for reading.
