Blockchain startup Lino has announced the completion of $20 million in investor funding, as the company attempts to develop a video sharing application similar to YouTube for the blockchain.
The company, based in Silicon Valley, is hoping to challenge the video sharing giant, with a model that offers decentralised video distribution, without the corporate middleman.
Chinese investment house Zhenfund has provided the investment, totaling $20 million, as part of the startup’s latest funding bid, with the investor purchasing tokens in a private token sale in order to commit the capital.
While Lino is not without its competitors in the space, which also sees the likes of Flixxo, Stream and Streamspace working on similar models, their platform is seen as having the potential to serve as an innovative blockchain alternative to the YouTube platform.
According to the Lino website, their mission is to create a model that prevents what they see as a conflict of interests from the middleman – corporate YouTube, in the YouTube example. While the site supports content creators, the business is focused solely on maximizing revenue – a fact Lino suggests creates a conflict which can be harmful to content creators.
“The solution is to create a collectively owned, decentralized means of distribution, which ensures all content value is directly distributed to content creators and affiliated contributors without going through a privately owned entity as a middleman…. The whole content economy is huge, but we believe in the decentralized organization concept. Why don’t we do it and starting the whole revolution starting with video content?”
LINO tokens will act as the platform’s currency, allowing content creators to earn money from their work, as well as rewarding those who share and otherwise publish content on the platform.
It is also possible to earn LINO tokens from developing apps, or by assisting in developing LINO network infrastructure, with those running nodes to host content eligible for earnings in the same way as the content creators.
Content value will be gauged by user engagement, with an ‘auction’-style system set up to create an effective market for content value – those with the most interesting, engaging content will be rewarded more generously under the proposed model.
The product is expected to be ready for launch this year, and with the funding now secured, Lino has the resources required to take its development to the next level. Whether the company comes to rival net giants YouTube remains to be seen.