Fight Online Piracy with Bitcoin: Here is How Custos Does it
Fight Online Piracy with Bitcoin: South African Start Up leads the way
Custos, a Stellenbosch based startup recently unveiled a new piece of technology to fight online piracy with bitcoin. The new technology they have developed uses the Bitcoin blockchain specifically.
Specifically, a bitcoin wallet is embedded into a piece of media. It can be any media type; movie, song, etc. The wallet contains a bounty. A bitcoin wallet is embedded into each copy of the piece of media, before sending to a client. The wallet is linked to the customer who bought the media.
If a malicious actor uploads a piece of media, anyone is able to claim the associated bounty. There is a tool at Privateer.xyz which anyone can use to extract the bitcoin bounty.
So, when someone loses control of their digital piece of media and it finds its way onto pirate sites on the internet, the bitcoins will be claimed (extracted) by someone. A notification is received by the company that the coins have moved on the blockchain. The original customer is then notified and can act accordingly.
Funding Raised to Fight online Piracy with Bitcoin
Custos Media Technologies has recently announced their second round of seed investment at ZAR 4,000,000. The funds came from a South African private investor, and Digital Currency Group (DCG).
Excited to announce our investment in South Africa-based Custos which uses bitcoin bounties to combat digital piracy
— Barry Silbert (@barrysilbert) 8 April 2016
It’s initial round of funding came last year when a ZAR 2,100,000 initial investment was made last year by the Stellenbosch’s Technology Transfer Office.
The company intends on using this new investment capital to help reach their target market; highrisk media producers. These producers are often most affected by piracy, often losing millions of dollars from a production budget when a title is leaked.
Speaking to Bitcoin Magazine, Fred Lutz, chief operating officer at Custos, said the company felt “…very fortunate to have investors that believe in the team, and see the potential of this new approach to content distribution.”
As a South Africa based Bitcoin company, iceCUBED is always proud to see fellow companies in the local ecosystem develop new and innovative technologies that enrich the space.