Microsoft, just like many other companies, has decided to embrace blockchain for managing gaming royalties. That means a lot for the gaming sector.
The Ethereum blockchain has been key in solving many challenges faced by many industries as many companies are leveraging on it. Microsoft is aggressive in embracing blockchain to use the platform for providing gaming rights and royalties management.
According to Paul Brody, a blockchain lead at EY, Microsoft plans to roll out the blockchain solution through a private Quorum network based on Ethereum. The expansion will improve the financial system, especially when it comes to royalty agreements giving Microsoft blockchain network a chance to do contract creation, payment, and reconciliation of transactions associated with gaming rights.
The expansion of blockchain functions will really help the Microsoft Xbox gaming partners and its network of content creators, artists, and musicians to get more transparency when it comes to tracking, management, and processing of payments for royalty contracts.
According to Microsoft’s general manager of global finance operations, Luke Fewell, blockchain solutions for royalty management will increase transparency between Microsoft and its partners, helping partners know what they have earned in real-time with more accuracy.
When you have a large network of content creators, getting the transparency and managing the complex structures is complicated and expensive. Blockchain is an open ledger that seamlessly connects all the relevant parties in one platform to increase transparency and smooth flow of information.
According to Brody, Microsoft expanded blockchain will help with the record’s financial system, which will improve the end-to-end royalties management process. It will be easier to manage both rights and royalties. Optimizing the smart contract system will automate the whole process making it efficient.
Brody highlighted that so far, Microsoft has already reduced the cycle time for the whole process by 99%, and there is faster contract creation. The platform has made it easy to create and integrate invoices linked with enterprise resource planning applications. It is easy to record royalties, generate accounting capability, and include the compliance standards that the financial system needs.
There is no doubt that blockchain will transform the gaming industry, given that it heightens transparency, trust, and fast payments. That explains why there is high blockchain adoption in the gaming industry. Many are taking the route of integrating with non-fungible tokens to fuel royalty.
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