Tania Rak on how Bitcoin could save journalism.
In the mid-1960s, Ted Nelson coined the term hypertext and envisioned a web with two-way links, which would require the approval of the person whose page was being linked to. Had Nelson’s system prevailed, it would have been possible for small payments to accrue to those who produced the content. The entire business of journalism and blogging would have turned out differently.
Instead, the World Wide Web became a realm where aggregators could make more money than content producers. Tim Berners-Lee, the English computer engineer who created the protocols of the Web in the early 1990s, considered including some form of rights management and payments. But, realizing this would have required central coordination and made it hard for the Web to spread wildly, he rejected the idea.
As the Web was taking off in 1994, there also appeared new media that were paid for by dial-up online services, such as AOL and Compuserve, to supply content, market their services, and moderate bulletin boards that built up communities of members. When the open Internet became an alternative to these proprietary online services, it seemed to offer an opportunity to take control of the marketing strategy and subscribers. Back then, most news services were charging a small fee or subscription, but ad agencies were so enthralled by the new medium that they flocked to buy the banner ads developed for websites. Thus it made sense for the media to retarget their audiences for the potential advertisers.
Yet it was not a sustainable business model. It encouraged clickbait rather than stories with real monetary value to readers. Consumers were conditioned to believe that content should be free. It took two decades to put that genie back in the bottle.
In the late 1990s, there was an attempt to create new Web protocols that could embed pages with the information needed to handle small payments, which would allow electronic wallet services to be created by banks or entrepreneurs. It was never implemented, partly because of the complexity of banking regulations. These days the efforts are renewed — media owners are looking in the direction of micropayment protocols again. These micropayment protocols still have not been written. But Bitcoin may be making that unnecessary, turning things to ease.
Today, people are starting to use Bitcoin to develop micropayment services, such as ChangeTip and Bitwall, that have tiny transaction costs and aren’t controlled by the antiquated banking system or middlemen merchants such as Amazon and Apple. This helps to avoid the mental and financial transaction costs that have plagued such payment systems as PayPal, which has so far failed to invent its own frictionless micropayment system.
The implementation of the micropayment systems could lead to a whole new era of creativity. It would permit today’s content creators — from major media companies to basement bloggers — to be able to sell digital copies of their articles, songs, games, and art by the piece. In addition to allowing them to pay the rent, it would have the worthy benefit of encouraging people to produce content valued by users rather than having news sites become totally beholden to advertisers. A flourishing culture might ensue. Easy and frictionless coin systems that allow us to buy digital content on impulse would support journalists who prefer to be under obligation to their readers rather than just to their advertisers — as well as support anyone else who wants to make a living producing creative things.
Building news services that plan to combine professional journalism with input from the users has many advantages. Some users are more willing to use their time than their money to pay for something they appreciate, so this model lets people pay for the service through their work. At the same time, if they do not want to pay, they still can share, recommend or comment. Long-term, such a model can create a fully autonomous, self-governed, and truly decentralized news network that financially benefits the content producers. For instance, people could produce local news themselves, which would be important in getting more marginal demographics interested in the content.
The discussion on the most effective models is wide ranging. But at the core of the discussion is this: Bitcoin can save journalism, offering unique solutions to some of the industry’s persistent challenges. Here’s how:
Transparent and Secure Payment Systems: One of the main hurdles journalists face is ensuring fair compensation for their work. Traditional payment systems often involve intermediaries, high transaction fees, and lengthy processing times. Bitcoin’s decentralized nature and blockchain technology can revolutionize this aspect by enabling direct peer-to-peer transactions without intermediaries. This transparency ensures that journalists receive their payments promptly and with reduced fees, enhancing financial stability and autonomy.
Crowdfunding and Micropayments: Bitcoin’s divisibility allows for micropayments, enabling readers to contribute small amounts of money for specific articles or journalists they wish to support. This microtransaction model can provide a sustainable revenue stream for journalists, encouraging high-quality content creation and fostering a direct relationship between journalists and their audience. Additionally, Bitcoin’s global reach and ease of use can facilitate crowdfunding campaigns for investigative journalism, giving reporters the resources they need to pursue in-depth research and reporting.
Combating Censorship and Press Freedom: Bitcoin’s decentralized and censorship-resistant nature can safeguard press freedom and protect journalists working in politically sensitive environments. By embracing Bitcoin, news organizations can bypass traditional banking systems that may be prone to censorship or government control. Cryptocurrencies, including Bitcoin, provide an alternative means of accepting donations and support from individuals who wish to support independent journalism in areas where press freedom is under threat.
Immutable and Verifiable Content: Blockchain technology, the underlying technology behind Bitcoin, offers a solution to the problem of trust in journalism. By storing article metadata or content hashes on the blockchain, journalists can provide proof of publication, timestamping, and immutable records. This feature enhances transparency and accountability in the industry, enabling readers to verify the authenticity and integrity of news articles. Journalists can leverage blockchain technology to combat fake news and disinformation, and ensure that their work remains unaltered and credible.
Global Reach and Financial Inclusion: Bitcoin’s borderless nature can enhance journalism’s global reach and accessibility. By accepting Bitcoin as a form of payment, news organizations can cater to a global audience, especially in regions where traditional financial systems are inadequate or inaccessible. Bitcoin’s low transaction fees and the absence of intermediaries make it an ideal tool for facilitating cross-border payments, enabling journalists to monetize their work without barriers.
Bitcoin, with its unique characteristics and underlying blockchain technology, presents a range of opportunities for the journalism industry. It is an influential yet subtle force changing our society that can lead to new approaches in how we interact with data, even if the use cases are hard to see now. The new decentralized web services might not supplant the now dominant, centralized services like Facebook and Google, but the two models will largely co-exist and the larger platforms will be influenced by the newcomers.
By leveraging the transparency, security, and decentralization that Bitcoin offers, journalists can enhance their financial stability, combat censorship, foster trust, and reach a global audience. Embracing Bitcoin can empower journalists, support independent reporting, and shape the future of journalism in a rapidly changing digital landscape.
