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Blockchain technology has become one of the most important inventions that has taken the net by storm. This form of a decentralized transaction ledger led to the creation of cryptocurrency—as well as blockchain uses for non-financial problems too.
However, it's definitely been proven that finance is the industry that's reaping the most rewards from blockchain. This is doubly true when it comes to the use of blockchain smart contracts, a form of technology that acts as a neutral third party overseeing each transaction.
Revenue sharing, such as the forms of payment used in affiliate marketing, has gotten increasingly popular as a form of income from the internet. Now, experts are saying that we should expect smart contracts in affiliate marketing sites, too.
Using smart contracts for revenue sharing is a great idea, and seems to be potentially easy to do. Here's how you can expect it to be done in the near future.
To understand why we need smart contracts for revenue sharing, it's important to understand the revenue sharing income model.
Revenue sharing is a lot like splitting a paycheck between you and your spouse. People who earn money by revenue sharing platforms or affiliate marketing like Clickbank want to make sure that they get paid for the hard work they do to make that sale happen.
The problems that come with this kind of model are many. It can be hard to accurately trace who deserves the profit-sharing. At times, companies may have to wait weeks just so that they can pay someone. Others may not be fully transparent about how much you actually earn.
Speed, accuracy, and transparency, therefore, are the problem points in revenue sharing business model.
Now, let's explain about what smart contracts are.
Smart contracts are codes that basically work as neutral third parties in transactions. This code allows the program to execute when all pre-programmed conditions in the transaction are met. If one condition isn't met, the trade doesn't happen.
This gives an added layer of validation, transparency, and security to transactions. As you can imagine, smart contracts make a lot of cryptocurrencies very safe. That's why people are saying that smart contracts will bring blockchain to the masses.
Now let's talk about the possibilities involving using smart contracts for revenue sharing.
Realistically, the possibilities are endless when it comes to how this technology could impact profit-sharing online. Along with a very obvious boost in security, groups that use smart contracts in their affiliate or revenue sharing platforms could see a variety of different perks.
This could include faster payment times, more accurate sales numbers reporting, and much more.
Here's how you can use smart contracts for revenue sharing accuracy...
The best way to ensure that people who earned their revenue get it is to make sure that transactions are done in a way that's fully validated as theirs. Smart contracts' beefed-up security means that you never have to wait to be able to report a sale.
Most transaction lags and miscalculations happen because of how hard it can be to confirm everything. Smart contracts allow real time data updates that are fully confirmed, thereby improving transaction saving accuracy dramatically.
It can also help improve the overall speed of revenue sharing.
If you choose to use smart contracts for revenue sharing, this also has an added perk. Fully validated, involved agreements happen in an instant using smart contracts. That mean that you don't have to wait for weeks to fully confirm all the transaction details.
Most affiliate marketing companies will have to wait a certain amount of time in order to confirm that the money has been paid, and that the transaction was not fraudulent. This is part of the reason that people who get paid via revenue sharing have to wait so long to see cash.
There's also the fact that it could also increase transparency.
Let's say that you decide to invest some cryptocurrency into a venture that promises you 2 percent of all revenue shares. In the old days, you had to just assume that the business wasn't lying about how much money they were really making.
These days, it's really hard to enforce that agreement using cryptocurrency and current tech. You just have to hope they were telling the truth. Online, smart contracts could provide some transparency on this front, too.
In the future, smart contracts could enforce this by making a rule that every bit of revenue that gets measured will have to have your own cut deducted from it. Some sports betting pool apps are already starting to experiment with this concept.
Smart contracts also help transparency by exposing "middle men."
Everyone wants to make sure that the affiliate marketing they do gets them paid the full amount they were promised—which is why they don't want to see middle men in their affiliate transaction getting a cut of their hard work.
Blockchain is an automated, decentralized ledger technology that smart contracts attached to. With blockchain, no single party can alter the ledger. This means you never have to worry about faked facts or having middle men insert themselves into a deal.
Needless to say, tweaking smart contracts to ensure that everything is deeply tracked, verified, and transparent could bolster trust in revenue sharing.
To a point, it could also help reduce security and program maintenance costs.
As anyone knows, computer software, apps, and websites never really stop evolving—but near constant updates can get a bit exhausting to deal with. Some groups are looking into how to use smart contracts for revenue sharing upgrades that could give slightly more permanence to the code.
Smart contracts offer a lot of security that standard cybersecurity tech simply can't offer. It also offers way more accuracy, without really requiring any patches or similar upgrade work. As a result, it's unlikely that software using smart contracts will need as much patching as a standard app would.
For certain kinds of revenue sharing platforms, this could mean more security—and overall, less maintenance time to update their platform to ensure that hackers don't tamper with the potential revenue being made. This, in turn, could lower operating costs for certain kinds of revenue sharing platforms.
Some suggest using smart contracts for revenue sharing legal issues.
Because of the added security and the possibility of added specific conditions for transaction execution, a lot of people are debating using smart contracts as automated lawyers.
In this case, smart contracts could overcome legal problems and lower costs in litigation matters involving cryptocurrency or digital transactions. If everything can be immediately traced and all terms are clearly agreed upon, this makes it easier to determine if there even is a problem at all.
Moreover, this would make it easier for a lot of lawmakers to be able to deliver decisions in court cases. Smart contracts could actually be used to spell out the terms on a legal ground, or to also assign a jurisdiction for any arbitration that could need to be done.
The best ways companies are using smart contracts for revenue sharing, though, are the ones that make people want to give revenue splitting a shot.
Profit-sharing platforms can be a great way to spread abundance to a bunch of different groups—and also help people create a low-maintenance stream of passive income. They are a great invention that can create livelihoods for the right people.
Any technology that promotes trust in this genre of commerce and helps make profit-sharing and affiliate work more accepted is a great use of tech. If there's reason to believe it'll help share the wealth, it's worth considering using smart contracts for one aspect of profit-sharing or another.