This document proposes an architecture for blockchain-based media networks. It discusses using blockchain technology to create distributed infrastructure for content storage and signaling/ranking systems to determine the prominence of content. This would create incentive structures where content creators, signal generators, and attention payers (users) are compensated, while advertising revenues could be routed to one or more of these groups. The goal would be to develop equilibrium between these participants using game theory concepts like perfect Bayesian equilibrium, where no participant can increase their payoff by deviating from the system.

1. AN ARCHITECTURE
FOR BLOCKCHAIN
MEDIA NETWORKS
Meher Roy
Princeton Ethereum Meetup, 19 Jan 2017.

2. Any sufficiently advanced technology
is indistinguishable from magic.
- Arthur C. Clarke -
2

3. =Caveman : Cellphone Us : Bitcoin?
Recall the first time you encountered Bitcoin?3

4. Digital gold!
Global distributed
database! Duh!
Rudimentary
world computer!
What is Bitcoin? 4

5. Fourth Incomplete Analogy
A useful system with multiple self-interested agents reliant on a software protocol
& data-structure to foster cooperation between agents in equilibrium.
5

6. MAGIC!
It is not from the benevolence of the butcher, the brewer or the baker that we
expect our dinner but from their regard to their own interest.
Miners
Users
Full-Node Owners
6

7. Perfect Bayesian Equilibrium
Given my beliefs about the types of other agents & actions available to us; I choose
that action which optimizes my expected payoff. If I deviate, I lower my expected payoff.
Miners
"Given..."
Users
"Given..."
Full-Node Owners
"Given..."
7

8. Can I build
a Bitcoin like
system better?
PoS? Sharding?
Build other
systems with
same principle?
Steem? MakerDAO?
8

9. Content Writers
/ Journalists
Editors
Printers &
Distributors
Readers /
Attention Payers
Advertisers
9

10. 10
News Corp.
Shareholders
Content Writers
/ Journalists
Editors
Printers &
Distributors
Readers /
Attention Payers
Advertisers

11. 11

12. Signals Calculation of
Content Rank
Ordering by
rank in Newsfeed
Recency Factor
Signal Strength
factor
Relevance factor
=
×
×
12

13. App Maker Corp.
13
Content
Creators
Signal
Generators
Employees,
App Maker Corp.
Attention
Payers
Advertisers
Shareholders

14. Application Maker Corp.
DB
Blockchain Technology - The Conceptual Jump 14
Distributed Infrastructure

15. ....
....
....
Service request
Service reply
Client - Server
Blockchain(s) for
storage of signals
IPFS / HTTP
web for content
Blockchain based Newsfeed(s) 15
....

16. 16End-User Interfaces to serve different tastes

17. First-order
approximation;
not exactly correct
17
App Maker Corp.
Content
Creators
Signal
Generators
Employees,
App Maker Corp.
Attention
Payers
Advertisers
Shareholders

18. Case I: Advertising won't exist at all in Blockchain based media
Case II: Advertising revenues routed to Content Creators
Case III: Advertising revenues routed to Signal Generators
Case IV: Advertising revenues routed to Attention Payers
Case V:
Some combination
that is a sum of
Cases II, III and IV
18
Content
Creators
Signal
Generators
Attention
Payers
Advertisers

19. Whoever influences the order in which content appears is strongly
incentivised to incorporate advertising, even if subliminal
The trade of money for influence has survived multiple tech shifts
Advertising won't exist at all 19

20. Advertising revenues routed to content creators (Steem)
Content, of many kinds, is ceasing to be scarce. My hypothesis is that many
Blockchain media networks can be built off the back of free web content.
20
Majority of businesses
we have today were
created here
attention competing
for information
We are
here today
infection point
We’ll be here
tomorrow
Information
competing
for attention
attention
limited by human factors
information
growing
exponentially
competition for
attention
growing exponentially

21. Challenge of Microtransactions
Tedious to keep track of
attention micropayments
Will you change your information
consumption to earn $10 per year?
Challenge of Scale
21Advertising revenues routed to attention payers (Synereo?)

22. 22Advertising revenues routed to signal generators
Gain value as
they are imitated!
Scale gracefully!
Determine
Newsfeed quality!

23. Token /
Share /
Asset
Attention
Payers
Signal
generator
"DAO"
....Content
Web ....
23

24. ....
Signal generator net
Token: footsies
Applications
....
24
Attention
Payers

25. Sports based SG nets
Profession based SG nets
Political SG nets
Lifestyle SG nets
25

26. Signal generation is expensive 26
Signal
generator
net
Nn
Invest capital
to buy tokens
Lock up tokens into
unsaleable bonds
Assume risk of
price fall, and pay
cost of capital
Assume risk
of appmakers
disregarding signals
Expenses / Risks borne

27. Revenue model for signal generators 27
AdvertizerSignal Generator
Show me
the moolah
Off-chain OTC trade
Trade using
privacy preserving
smart contracts
Trade using
prediction markets
ImplementationMake my
content
prominent

28. Incentive structure of the signalling game 28
Good
signalling
More people
follow signals
Higher value
of signal to
advertisers
Larger
revenues
to signal
generators
Greater token
market cap
Bigger value at
risk & potential
for reward
Intrinsic Value
of token (ABA)
=
-
(minus)
Net present dollar value of
Monetizable
attention stream
Cost to maintain
(& grow)
attention stream

29. Perfect Bayesian Equilibrium
Given my beliefs about the types of other agents & actions available to us; I choose
that action which optimizes my expected payoff. If I deviate, I lower my expected payoff.
Signal Generators
"Given..."
Advertisers
"Given..."
Attention Payers
"Given..."
29

30. Concept
Description
Financial
Valuation model
Equilibrium
concept
Upcoming Stripepaper 30

31. Maciej Olpinski Michael H. Goldhaber Dr. Michael Spence
Acknowledgements - intellectual 31

32. Steem Synereo Meme markets
Related Projects 32

33. BACKUP
Meher Roy
Princeton Ethereum Meetup, 19 Jan 2017.

34. =Caveman : Cellphone Us : Bitcoin?
Recall the first time you encountered Bitcoin?3