Ryan, Mark David (2019). Existing systems, new languages: prototyping blockchain models for the book publishing industry. Faculdade de Letras da Universidade do Porto (University of Porto Arts and Humanities Faculty), Porto, Portugal, 25 October, 2019.

1. Existing systems, new languages: prototyping
blockchain models for the book publishing
industry
Dr. Mark David Ryan
QUT Creative Industries Faculty
E: m3.ryan@qut.edu.au
T: @Markdavidryan

2. PROJECT
2 year Catapult project
Funded by Institute of Future Environments
Catapult grants fund innovative transdisciplinary
research
The project was a collaboration between:
Creative Industries
Law
Information systems
And the PublisherTiny OwlWorkshop

3. THE ENGAGEMENT AND IMPACT AGENDA
FOR RESEARCH
Engagement and Impact a growing agenda which will have increased
influence on government research grant schemes.
Now an industry for academic impact (bibliometrics) and a growing one for
outside academia
Engagement Indicators
Counts of patents granted and patent family
Count of patent–cited papers
Co-authorship of research publications
Co-funded research outputs
Proportion of total outputs available via open access
Ratio of ARC Linkage grants to ARC Discovery grants
Cash provided by research end-user partner on grants

4. Blockchain and publishing

5. SELF-PUBLISHING 1.0: DESKTOP
PUBLISHING
In the 1970s, desktop publishing revolutionized self-
publishing
Ability to create digital page layouts on screen
using texts and graphics
Newspapers and other media began using this in
early 1980s
1985 Apple LaserWriter printer – consumers could
do it at home
DTP made Print-On-Demand (POD) or publishing
single copies or small batches economically viable
IBM’s first PC debuted on 12 August 1981
https://observer.com/2015/08/ibms-first-personal-computer-was-released-34-years-ago-
today/

6. SELF-PUBLISHING 2.0: EBOOKS
1990 – ebooks created in .txt, .mobi,
.doc formats
1998 – first digital bookstores appeared
online
2004 – Sony releases first ebook reader
2007 – Amazon releases first Kindle
ereader

7. SELF-PUBLISHING 2.0: EBOOKS
BENEFITS of EBOOKS
Authors now able to create their own digital files
Authors able to remove agents, publishers, wholesalers from
the chain
Authors bring their readers closer to them, with only online
distributor in between

8. CHALLENGESTO AUTHORS NOW
Content is still mediated by large corporations eg. Amazon
Everyone else gets paid first before the author sees a dollar
Vast majority of ‘indie’ authors still earn income from Amazon
Piracy is rampant
Publishing contracts are complex and often unintelligible
Many authors crave attention more than money – undervalue
their product
Many authors resist being in business
Many authors sign contracts without reading them

9. CHALLENGESTO
AUTHORS NOW
Getting the book published
Distribution
Being discovered by readers
Getting customers
Dealing with competition
Low earnings
Unsold books
The long process from
publication to launch
mage credit:
Authorship, 2018. https://authorship.com/platform-intro/

10. SELF-PUBLISHING 3.0: DIRECT SALES
Two key areas of growth for self-publishing and authors
1. Diversifying income streams
2. Building direct patronage via
social media
website
blogs
and other elements of an author platform
How do we incorporate blockchain into this?

11. WHAT IS BLOCKCHAIN?
Blockchain is a continuously growing list of digital
records, called blocks.
These blocks are linked to each other and secured
by collaboration, date stamping and transparency.
We can think of blockchain as a public ledger
system
Each time a block is added to the ledger, anyone
with access will receive a copy of the updated
blockchain, and all the transactions that have taken
place

12. WHAT IS BLOCKCHAIN?
The blockchain is distributed across an
encrypted computer network
Each transaction must be verified by all
participants in the network
All purchases, divisions, exchanges able
to be reconstructed at any time

13. WHY IS BLOCKCHAIN USEFUL?
Decentralization
It is a simple way of storing information is a distributed
manner
There is no single central server or distributor
responsible

14. IMPORTANCE OF BLOCKCHAIN
Digital
Any information that can be digitized can be put on the blockchain and referenced through a ledger entry
Distributed
Each participant receives an identical copy
all participants can verify the information independently
Consensus-Based
There is no central authority
All participants on the network collectively check and approve transactions
Chronological and PermanentlyTime-Stamped
All blocks are timed and dated and point back to blocks before

15. HOW IS IT USEFUL FOR PUBLISHING?
Blockchain technologies have the potential to transform
traditional value chains and the relationship between creators,
publishers, distributors, and consumers
It can maximize the value of the author’s intellectual
property and moral and monetary rights
It can also deliver an author-centred financial model for the first
time in publishing history

16. BLOCKCHAIN CAN CHANGE SEVERAL
ASPECTS OF PUBLISHING
1. Creates new value
2. Licensing and rights management
3. Micropayments

17. BLOCKCHAIN CHANGES PUBLISHING
1. value
Copyright tracking and subsequent
royalty or commission payments
easier and more accurate

18. BLOCKCHAIN CHANGES PUBLISHING
2. Licensing and rights management
•Clear and transparent licensing framework with smart
contracts
•Track the distribution of content and automatically
accumulate credit
•Automatically distribute payment to respective rights
holders/service providers
•E.g. including original authors, fan fiction, co-creation,
anthologies

19. BLOCKCHAIN CHANGES PUBLISHING
3. Micropayments
Can be collected in digital currency
and added to an author’s wallet
as simple as downloading a song
from iTunes
no threshold to purchase or
payment

20. BLOCKCHAIN CAN…
crowdfund/greenlight a book project through
cryptocurrency systems
track audience engagement with a particular book or
author through their digital interactions and purchases
securely verify texts and their authenticity
e.g. First editions, reprints, limited editions, previously
unpublished drafts, special illustrations, etc

21. EXPANDING SELF-PUBLISHING 3.0
Blockchain can expand on digital self-publishing 3.0 in
five areas:
1. Copyright
2. Smart Contracts
3. SmartWallets
4. Creative Credit and Acknowledgement
5. Privacy

22. 1. BLOCKCHAIN AND COPYRIGHT
Plagiarism becomes much more difficult
if files are logged on the blockchain
Ownership becomes indisputable
blockchain makes copyright tracking, and
subsequent royalty or commission
payments, easier and more accurate
E.g. You can’t claim 20% royalties because
the blockchain lists says you are owed 15%

23. 2. BLOCKCHAIN AND SMART CONTRACTS
Automated smart digital contracts simultaneously represent
ownership of an intellectual property and the conditions set
by its owner
•Automatic rules, checked conditions
•Minimal human involvement and cost
•Replace interests parties with disinterested network of
machines
•This means that the right person ‘pays’ the right amount
•And the right person ‘is paid’ automatically

24. 3. SMARTWALLETS ANDTHE PAYMENT CHAIN
Blockchain and cryptocurrency make it easy
for readers to make small payments
This allows authors to be paid directly for
books, single articles, podcast etc.
Payments can be split at the point of
transaction
All money can be transacted through author
smart wallet
Wholesalers, retailers, publishers paid at point
of transaction
Authors are essentially selling a key to their
work

25. 4. CREATIVE CREDIT AND ACKNOWLEDGEMENT
Digital wallet can serve as a hub for all the people
involved in the process
The smart contract can split and dispense payment to
the right people during the transaction
Blockchain can securely verify authorship for all inputs
into the publishing process
not just authors, but illustrators, editors, co-creators,
etc

26. 5. BLOCKCHAIN AND PRIVACY
Anonymity and psydeudonymity
of authors are easily managed –
without creating a payment
challenge

27. HOW DO AUTHORS BENEFIT FROM
MICROPAYMENTS?
Widened consumer base: cryptocurrencies don’t have
geographical boundaries
Reach markets where they couldn’t through traditional
methods
No intermediary fees
Lower transaction fees vs credit card processing
Smart contracts track ownership rights
Payments from consumers can be immediately transferred
to associated rights holders in accurate percentages

28. ENGAGEMENT ANDTHIS PROJECT
Tiny Owl approached QUT to prototype
blockchain model to improve and
experiment with business models
Aim was to create revenue flows using
smart contracts for different online
editions of a book

29. Key stakeholders
as equal
collaborators and
partners
e.g. individuals,
industry partners,
community partners
organisations
define
conceptualise
represent/map
Strategic vision
Research agenda
key project
concepts/ themes
co-determine
Project goals &
priorities /
Research questions
shape
process &
interaction /
communication
protocols
evaluate & refine
project
Outcomes /
co-develop
evaluation methods
and impact
indicators
FRAMEWORK FOR CO-DESIGNING RESEARCH WITH PARTNERS
Adapted from: Zelenko 2012
activity
“Codesign:
* A highly strategic
method for
creation of shared value
within collaborations
• Reveals operational realities
of partner organisations”
* Can be introduced at various
stages of the project process
as a pathway for deepening
the research partnership”
Zelenko 2019

30. Key stakeholders Tiny Owl
Publishers
QUT
• Creative Industries
• Law
• Information systems
define
conceptualise
represent/map
Project for both authors &
publishers that explores revenue
models using BC
co-determine
After a comprehensive
environmental survey: 3-4 project
options presented based on TO
products and out budget
shape
Combined multiple options due to
time and budget constraints
evaluate & refine
First draft of book received
extension revision/feedback from
writers
FRAMEWORK FOR CO-DESIGNING RESEARCH WITH PARTNERS
Adapted from: Zelenko 2012

31. FRAMEWORK FOR CO-DESIGNING RESEARCH WITH PARTNERS
Adapted from: Zelenko 2012
Project options presented to the publisher
Based on gaps in what publisher had already done in the market using BC
1. Adding value to digital creation and publishing (creating value for paratexts)
2. Rewarding fans and fan engagement (including first-buyers and patronage)
• Monetising Ancillaries/paratexts and Embracing Fan Fiction
3. Meep (Tiny Owl Workshop): streamlining the print and electronic bundling purchase process
4. Sci-Fi Author Remix
5. Lane of Unusual Traders (Tiny Owl Workshop): Curated fan-fiction remixing

32. CO-DESIGN PROCESS: IDENTIFYINGTHE
PATHWAY
Project Co-designed between QUT research team (CIF, Law, IS)
and the publisher
Publisher wanted blockchain prototype for revenue streams for
different people involved and for digital editions
CIF conducted comprehensive environmental scan of current
publishing and blockchain projects to understand field
LAW investigated smart contract processes;
IS develop the workflow model for blockchain implementation

33. CO-DESIGN PROCESS: FINALIZING
PRODUCT
Various blockchain models and scenarios explored
The final product was conceptualized with the publisher
Development commenced

34. THE PROJECT
Value: creating value for paratexts &
streamlining the print and electronic bundling
purchase process
Original book only published as a hard copy
Digital edition published with three paratext
bundles: editors edition, illustrators and
commissioning letter
Project publishes drafts, edits, conversation with
editor, commissioning letter
Each individual involve receives a revenue stream:

35. THE PROJECT
E-copies and hard copy sales track via blockchain
(using a bellyband and QR code).
Copyright is timestamped, hardcopy free digital
editions are a set of special editions
Editor, illustrator acknowledged on BC and receive
royalties

36. OUTCOMES
Non-traditional research output (Digital book and
paratext bundles)
Novel blockchain prototype
Blockchain workflow and smart contract model
Publisher: a new business model
Writing Creatives: new IP, contract agreements and
royalty streams

37. PROJECT
WHITE PAPER
Ryan, Mark David, Macrossan,
Phoebe, Adams, Michael, &
Cliff, Cameron (2020) No point
in stopping white paper: A
publisher-centred blockchain
model for the book publishing
industry. QUT Digital Media
Research Centre.
Available:
https://eprints.qut.edu.au/199865/8/No_Point_In_Stopping_W
hite_Paper_PDF_FINAL_18_May_2020.pdf