The adult entertainment industry is a huge and one of the fastest growing markets. To be more specific, we’re talking about $100 bln net worth and more than half a billion active users daily.
The engine of progress
Some reports show that in the early Internet era, 80% of the content was porn, and it’s due erotic content, that higher speed and capacity was required, and it pushed the internet to develop faster. Today porn traffic is estimated at 30% of all Internet traffic. Litecoin creator Charlie Lee even says in his tweets, that “porn industry is definitely a leading indicator of technology adoption” talking about cryptocurrency adoption.
Stigma and limitations
Let’s not forget that there is the industry of sex dating, another stigmatized, but extremely rich market. Obviously, despite the frenzied popularity, these spheres are subject to public censure and fall into the gray zone. For example, in 2015 Visa and Mastercard pulled their services from Backpage.com, a site for sex workers personal advertising. Users of this portal had no choice but to switch to crypto – they adopted Bitcoin, Dogecoin, and Litecoin, used them for payments and even wrote detailed tutorials on how to use cryptocurrencies safely.
Moreover, major payment systems (for example, PayPal and Square) have special restrictive policies for sending and receiving payments for anything related to adult industries, including sex toys, pornography, or subscription-based online adult communities.
The very similar thing happens to cannabis industry, that suffers greatly because of the inability to use the banking system due to the fact that in the US marijuana is not allowed at the federal level.
Blockchain – answer to anonymity concern
Every user of the adult industry is concerned about the anonymity and privacy of his requests and activities. And that’s when the blockchain industry offers the ideal solution – full anonymity and decentralization combined with transparency of transaction chains that can not be cracked, and thus providing security for both the buyer and the seller. Traditional payment methods cannot offer anything of the kind.
Big players agree
Blockchain is so ideal for the adult entertainment industry that whales are already actively implementing new technology into their business. For example, Playboy TV announced launching a new cryptocurrency payment option in March 2018. The funny story is that they didn’t succeed and had to sue their contractor Canadian firm Global Blockchain Technologies (GBT) in August 2018 for not being able to integrate blockchain technology into Playboy’s online media channels.
Another pioneer is PornHub that firstly announced a partnership with TheVerge (XVG) in April 2018, and then a partnership with a crypto startup PumaPay to enable its users payments in cryptocurrencies in August 2018 while their subsidiary web site Tube8 is launching a blockchain platform that will reward users for watching their content.
Seeking for more safety features
Since security is the main issue of the sex industry, and it’s not just privacy and anonymity, but also safety for life and health, projects are already being developed that solve this problem. For example, Hussy project will be able to “verify the identity and a health state of each sex worker and issue a immutable confirmation to the Blockchain that each potential client can verify before arranging a meeting”. It will also help to solve problem of human traffickers, tracking their activity.
Another thing – the fight against piracy and theft of content. With 30% of Internet traffic being related to porn content, piracy is a huge problem causing huge revenue losses for content providers. There’re special blockchain projects that solve this issue, like DECENT, planning to track the distribution of content.
As we can see, blockchain is getting more and more popular in the adult content industry due to it basic features. Stigmatization is here and it’s real while blockchain is fixing that widening the boundaries of human perception, offering safe and protected experience to a billion people every day. We will see more and more interesting projects, that will help to secure both user and producer and also reduce such things as human trafficking.