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How The Blockchain Turns Content Micropayments Into Microinvestments.

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Why Speculation Can Be a Foundation of Decentralised Media Business Models.

In my previous post, I introduced a metaphor of the blockchain as the ‘persistent social graph’ (or the persistent link-graph). The main argument was that the chain of transactions on the blockchain creates a persistent, immutable graph of connections between addresses. Once we assign an identity to the address on the blockchain, the transaction graph becomes a public social graph of financial transactions.

For the pure currency applications, this is actually a very undesirable feature. The chain of transactions has to be obfuscated, meaning that you actually don’t want anyone to be able to understand who is transacting with whom. Therefore, in the case of Bitcoin, you should use a new address for every transaction, to maintain your transaction privacy.

But this quality of the public ledger is a feature when you want to design a social graph where money is used as one of discovery signals.

In this category of applications, you actually want to get discovered and having an identity tied to a public address is the first step.

Owning your social graph is MUCH more valuable than owning your content. In fact, in the networked attention economy, you cannot separate content from its link structure. And by the link structure, I mean all the inbound and outbound likes, hyperlinks, stars, hearts, tweets, friends, followers, fans etc.

These links affect your discoverability and ranking in the context of a particular social platform.

But what advantages the blockchain social graphs (and apps built on top of them) could offer when compared to the traditional centralised social networks?

Turning Cryptocurrency Speculation into Content Speculation

Speculation is one of the leading use cases of cryptocurrencies. When I’m writing these words there are 674(!) various cryptocurrencies being listed on Most of them have no other use than speculation and won’t survive till the next month.

Speculation has a lot of negative connotations but the reality of life is that people are natural born speculators.

 What blogs did for journalism & publishing, the blockchain does for speculation and trading. By allowing everyone to create and trade digital assets, it has created a new breed speculators trading with cryptocurrencies. Activities that were reserved for professionals and heavily regulated before are becoming available to everyone (at with all positive and negative consequences).

Services like will open up possibilities for speculation even further. With its prediction market, it will allow everyone to bet on the outcome of future events.

But this is just the tip of an iceberg. What I’m excited about is the possibility of creating new user experiences based on speculation but in the context of content discovery.

The critical feature of the blockchain, that’s going to unlock a multitude of new, speculation based applications is called ‘timestamping’. Time stamping allows you to prove that a particular statement was made at a specific moment in time (measured by the block number).

So why is it relevant to our blockchain-based social graphs?

Because it introduces a whole lot of possibilities for content speculation — who was the first to link or like a particular ‘person’ or a ‘piece’ of content. 

Combine it with the monetary value that can be attached to ‘likes’ or ‘links’ and suddenly you have two extra dimensions (time and value) embedded directly in your social graph. 

Let’s make it more tangible with an example.

Look at the one of the most successful YouTube videos ever — the Gangnam Style. It has accrued billions of views over the years and became one of the greatest hits in the history of YouTube. But what I’d like to know is who was the person that was the 1st , 10th or a 100th to share or like this video. Before it actually went viral.

Today, it’s impossible to determine that without digging deep into YouTube’s or FB’s databases. And even if it was possible you couldn’t tell whether their administrator didn’t quietly change the records. You don’t have the ‘objective’ timeline.

The blockchain gives us the objective reference for time-based events and applying it to linking in all kinds of social graphs has a massive potential.

Imagine the alternative reality where ‘Gangnam Style’ went viral on the blockchain-based social network. Where all the links are time-stamped and carry a monetary value. As the ‘Gangnam Style’ video is getting more popular, this popularity is automatically transferred to the nodes in the social graph that were first to connect (‘like/link’) to it.

How does this popularity get ‘transferred’ though? Because in this alternative reality, it makes sense to create a discovery system that ranks people who were first to recognise the future popularity of content. And it makes even more sense to connect to these people/nodes earlier that later.

How Would You Invest Your ‘Likes’?

Timestamping of links in the social graph creates a new dimension of ‘time-scarcity’ and in this dimension, it matters when you ‘liked’ or ‘linked’ something.

At any given block, you can only link to a limited number of other nodes so your timestamped linking pattern becomes your immutable and public footprint on the ledger. It is your link equity to use the terminology from the Google SEO world.

Various ranking algorithms can be used to analyse this graphs of individual footprints but the objective timestamp and attached value will be always there.

Wouldn’t you be interested who was the first person to link to the Bitcoin whitepaper? And how much monetary value they invested in it?

With Timestamping, Micropayments Become Microinvestments.

If we recognise the importance of timestamping and persistent linking on the blockchain then micropayments cease to be just the simple transfers of value. They become microinvestments in building one’s social graph and the mental models of users change completely in this scenario.

In the traditional micropayment or tipping model, my motivation to initiate a micropayment is altruistic. I enjoyed what you’ve created so I’ll send you some small amounts of Bitcoin or some other currency. If you put up a paywall and request me to pay, I’ll probably go elsewhere because I have the abundance of other options. In both cases, the mental model I have is the ‘payment’ model. Value is deducted from my account and added to yours.

But if we recognise the timestamp and the persistent link that is created in the blockchain social graph with a transaction, the micropayment automatically becomes a ‘microinvestment’. I’m not paying you anymore.

I’m publicly voting/investing/creating a connection between our nodes. My motivation is selfish now — I’m ‘investing’ in my social graph and I want to invest in the most valuable connections AND do it as early as possible. Because with each passing block, the value of my potential ‘timestamp’ decreases by one. I’m no longer in the ‘customer’ mode, I’m in the ‘speculator’ mode. 

Is this content/person worth linking to NOW? How does this link reflect on me? How does this affect my future chances of getting visibility and being linked to? How much should I invest? etc.

In both scenarios, the actual transaction will look exactly the same on the blockchain (not counting the metadata). But its meaning to a user will be totally different.

In the first case, a user is paying someone small amounts of money in exchange for access to content, a classic ‘buy/sell’ transaction.

In the second case, the user is investing in their own social graph and speculates how valuable this link might be in the future. Consequently, they might ‘invest’ much more than they would ‘pay’ in the first scenario.

Attention and Discoverability Is Where It’s At

You might have noticed there’s no ‘content monetization’ embedded in that model. Attention is the value that the nodes compete for. Transactions between nodes are the primary way of competing for attention and building a persistent reputation on the network.

If I want to get noticed by the ‘Kim Kardashian’ node I have to either send a high value transaction today or send a lower value transaction back in the day when the ‘Kim Kardashian’ node didn’t have so many incoming connections.

It doesn’t matter whether the Kim Kardashian node produces high quality content or is a creator of any sort. What does matter is that nodes the ‘Kim Kardashian’ node links to, become valuable due to the link equity that Kim Kardashian has.

It’s like the Web where all the links are on the public ledger but anyone can apply their own Google PageRank on top of it. The only difference is you don’t have to crawl the entire web to understand the link structure. It’s right there- on the blockchain.

But What About The Scalability?

Obviously, the blockchain tech today is not ready for mainstream deployments of the on-chain micropayment schemes. However, we can already experiment with with on-chain economies at the ‘Harvard scale’ equivalents of the future social networks.

Right now, we don’t even know what economic models for content monetization will gain traction. Bitcoin tipping or microtransaction paywalls are the first step but they still follow the classic ‘buy/sell’ paradigm and don’t take full advantage of the blockchain’s potential.

Product and UX will be key

To create successful ‘open social graph’ models we’ll need new UX metaphors.

  • Web 1.0 came with pages & links metaphors — ‘the web of static documents’
  • the social Web 2.0 came with feeds & likes metaphors and was shaped around ‘people and profiles’.
  • what metaphors will be appropriate for the blockchain-based Web 3.0 where time and value become the first class citizens?

The key to creating successful ‘open social graph’ models will be discovering new UX metaphors that make sense in this new contexts.

The Promise Of The Blockchain — Owning Your Social Graph

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Your Content Is Only As Valuable As Links It Receives.

In the majority of discussions about the future of media, the assumption is that ‘content’ is valuable and if we try hard we’ll find the way of ‘monetizing’ it.

Once we give users the right tools, the story goes, they will start paying each other for access to content (whether that’s micropayments, nanopayments or tips in various forms).

In many ways, we’re still stuck in the industrial era narrative of the ‘copyright’ which is maintained by the centralised institutions protecting ‘rights’ of the owners. Therefore, we need to ‘protect’ our content by putting up paywalls and charging for access. But while the ‘copyright’ model might still work for the 1% of top creators (supported by the major movie studios and record labels), for the rest of us it’s already game over.

In the digital network economy, the value of content is not determined by the copyright deals. It’s determined by content’s location in the network. By location, I mean the number of incoming connections that point to that content.

We use different metaphors for these connections — on the Web there will be links, in the Facebook’s walled garden — likes, friends or follows, Instagram — hearts and follows etc.

The economic value of your content will dynamically change depending on how many of those links you receive.

But it’s always the location in the network graph that determines the value of your content, not the content itself.

You Can Have Your Photos But We’ll Keep The Links”

Music, photos, videos, articles — can be easily copied and shared. What can’t be copied is the link structure that points to them.

The famous Gangnam Style Video on your hard drive is worth nothing. But it’s extremely valuable on the YouTube channel with billions of views, comments, subscribers.

You can export your posts from Facebook in a zip file but the reality is that outside of Facebook your posts are worthless. What’s valuable is the ‘friend/like/follow’ structure you’ve accumulated over the years. And this link structure is owned by Facebook, not you.

In fact, this is how you build the social media platforms today. Attract users with your service, provide them with a superior experience and let them create the social graph on your servers. But once they’ve invested time and effort in building their graph, they can’t take it elsewhere.

So while we obsess over the old school terms such as content monetization, rights or licenses, it’s The Link/Social Graph ownership that we should be really thinking about.

The Promise Of The Blockchain — Owning Your Social Graph

The publicly visible, auditable trail of transactions that public blockchains enable can be useful not only for purely financial transactions.

Blockchains open up a possibility to think about future social networks where users contribute to the shared, common social graph while being in control of the nodes in this graph.

While blockchains are not yet scalable enough to maintain mainstream social networks, we can already experiment with the niche ones.

So in the next post, I’ll explore issues related to the value propositions and possible user experiences of blockchain based networks.

Recreating Google’s PageRank on The Bitcoin Blockchain

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Decentralising discovery on the Web can be the blockchain’s killer app.

The popular narrative in the Bitcoin/blockchain community is that we can reinvent the way the Web is monetized by introducing micropayments for content.

The main assumption is that if we can figure out the UX that’s easy enough for the regular users, people will start paying creators for the content they consume. So whenever a user visits a site they find valuable, they can decide to transfer small amounts of bitcoins to the creator of the site (or any other online content).

If many users do the same, all these microtransactions add up to a significant amount and creators can make a living producing content and being rewarded directly for their work. In this model, advertising is not necessary as users will support creators directly.

So if you’re a publisher you won’t have to use Google AdSense to display ads on your site. The money should come directly from the visitors tipping you with small amounts of bitcoin.

Bitcoin micro-paywalls is another idea for content monetization with Bitcoin. To access the page, you have to pay small amounts of BTC otherwise you’re denied entry. Again, the idea is that if we solve the UX — users will start paying for content automatically while browsing the web.

It’s too early to predict whether this vision of the future will indeed materialise. We can assume that in some niches it might work. However, the early signs are indicating that opposite is the case. The adoption of Bitcoin tipping buttons is not really growing exponentially and culture of tipping is limited to several Reddit communities. Even there, among the earliest of the early adopters, it’s not really a mainstream activity.

A quick look at the Amazon Kindle Store and AppStore is also quite informative.

Lots of Amazon Kindle books or iPhone apps cost less than a dollar already, they go for $0.99, and most of Kindle authors and iPhone app developers will never make any substantial money out of them.

And that people have credit cards already connected to these systems. The payment experience is already seamless and convenient. And if something goes wrong there’s always a customer service person ready to answer our problems.

Still 60% of apps in the iPhone app store are never downloaded. Would Bitcoin tipping or micropayments change that?

Discovery is the Holy Grail of the Web

What I’ll say now might sound controversial but unfortunately, this is becoming a new normal. Content and information are abundant and are becoming more abundant at an exponentially growing pace. There’s just too much stuff on the web.

So the entire concept of ‘content monetization’ is becoming more obsolete. Whatever is abundant is not valuable anymore. The primary scarcity of today’s world is ‘attention’. If you’re reading this article your attention cannot be invested anywhere else. The growing amount of apps, services, products, news is competing for your limited amount of attention and this competition is getting fiercer.

This is the reason why ‘discovery’ is such a profitable business. Google Search or Facebook’s Newsfeed are in the discovery business. The attention of millions of users is aggregated in these services so they can extract huge amounts of value by selling access to this attention. The same is true for mobile app stores —Apple’s App Store or Google’s Play Store.

While the publishers are getting outraged that Google and Facebook are making all the money while producing none of the content, what we’re seeing here is the pure economics at play.

Money flows to what’s scarce and content is not scarce anymore.

The same person won’t pay $1 for access to a blog article but will pay more than that for a click from AdWords to get traffic to their business.

That is the reason you can’t fully replace AdSense with Bitcoin micropayments because with AdSense the value is in people’s attention (represented by ‘traffic’) and that’s what people are paying for. I pay you $1 to redirect attention (‘traffic’) from your site to my site. Because attention is scarce and getting discovered is hard. Content is only as valuable as the amount of attention it can attract.

Sometimes there’s no content and lots of attention — look at the Google’s search page.

Extreme centralisation of discovery leads to the situation we’re having today with few big winners taking all of the profits. So everyone working in the decentralisation space that wants to ‘fix the Web with Bitcoin or blockchain’ should focus their efforts on decentralising discovery.

In other words, how can we design systems where value generated by discovery is distributed more equally among participants of the platform.

For example: website owners holding a stake in Google, app developers having stake in App Stores, users having a stake in Facebook etc. Or if we get a bit more futuristic — VR creators having a stake in VR worlds, or bot creators in bot search engines.

What Google PageRank and Bitcoin whitepapers have in common?

I understand that for many of you similarities between these two papers together might not be immediately obvious.

What does Google’s indexing algorithm have to do with the system of decentralised electronic cash?

It might be easier for you to see this similarity if you’ve ever worked in the Search Engine Optimisation industry and understand the economic value of HTML hyperlinks.

The basic insight of Larry Page and Sergey Brin, the creators of Google, was that you can calculate the importance of the website by understanding the graph of links that point to this website. The more links a website receives the more ‘important’ it is. This numerical value of ‘importance’ called the PageRank score can be passed between sites using links. So the link from the New York Times will be more valuable from the same link coming from your friend’s blog.

The first version of Google’s Search Engine was built on this insight and even though Google’s algorithm got way more complex over time the links are still the currency of the online economy.

HTTP links are ‘transactions’ in Google’s internal ledger

In fact, links are so valuable in the age of Google Search that buying and selling links is a multi-billion dollar business itself. Acquiring backlinks pointing to your site translates into getting more traffic from Google. Which means getting more attention. Links are the ‘attention currency’ of the internet. If you want to buy attention (‘traffic to your website’) on the Internet you need someone to link to you. Similarly, if you want to buy coffee in the USA you need dollars.

The only problem is that Google’s is the ‘Central Bank of Links’ that controls value of this ‘attention currency’. By crawling the entire web, it created an internal ledger of links on the Web. This ‘ledger of links’ represents the graph of the Web and all transactions that take place between the websites. I’m intentionally using the metaphor of a ‘transaction’ here. In Google’s PageRank system, when websites link to each other they pass their reputational score along with the link.

And because this reputational score affects rankings in the Google’s results, there’s a quantifiable economic value attached to these links. Of course, Google wants to prevent link trading outside of its own AdWords platform and if you trade links you can get banned from Google’s organic search results. But this is irrelevant to my point that hyperlinks can be understood as transactions that transfer economic value.

By maintaining a closed, internal ledger of how websites are linked together, Google can provide a search engine and a myriad of other services built on top of that data.

Bitcoin’s public transaction record doesn’t help privacy but allows killer feature — ‘discovery’

Ok, but you’re still wondering how does it all relate to the Bitcoin blockchain?

Let’s forget for a moment about Bitcoin’s core application — a currency.

Under the hood, Bitcoin is a decentralised, immutable ledger that holds the permanent of record transactions between addresses. To be even more precise, the economic value — bitcoins, are stored in the transaction outputs, that can be ‘spent’ by a holder of a corresponding private key.

Without going deep into the mechanics of Bitcoin, the core property of the Bitcoin’s blockchain (or any other blockchain for that matter) is that it contains the transaction record going all the way back to its origin. Every transaction that ever happened on the Bitcoin blockchain will be recorded there forever.

This quality of immutability and persistence transaction can be problematic if you want to run a digital cash such as Bitcoin on top of it. All transactions can be tracked forever so there are potential issues with privacy and fungibility. If someone knows your Bitcoin address they can see your entire history of transactions because it’s public for everyone to see. That’s why it’s so important not to reuse the same addresses if you want to maintain privacy. So most efforts related to Bitcoin as digital money are focused on obfuscating the transaction history and making Bitcoin private and anonymous.

But what about the use cases where you actually want to get discovered?

Bitcoin’s transaction chain can be an open link graph for any data type.

What if the Bitcoin blockchain’s transaction graph could be used as a link graph for any type of data?

To use an example, if you want to link from your WordPress blog to another WordPress blog today you place a link in a HTML document that’s located on your local server. The fact that this link ever existed is recognised by a Google bot who will add it to their internal ledger when crawling the site.

But imagine that instead of placing the HTML tag in your WordPress database you send a small transaction from your Bitcoin address to the address you want to link to and add some metadata with details of the transaction (OP_RETURN for those technically inclined). You create a persistent link on the public blockchain that connects these two addresses.

If it’s difficult for you to visualise the value of such a link, let me give you a more tangible example.

Go to

and look at the transaction history. This is the first Bitcoin address that belongs to Satoshi Nakamoto. Because it has so much visibility in the community people are sending it small amounts of bitcoins and some of them are even attaching ‘Public Notes’ to their transactions.

Public Notes are’s internal feature (not recorded in the blockchain, only visible on the’s site) but nevertheless look at the last few transactions.

Owners of two Bitcoin related sites are ‘linking’ to Satoshi’s address with URLs included in the Public Notes.

So already people are using a popular Bitcoin address that receives a lot of visibility and traffic and creating backlinks to it. I don’t have access to’s traffic stats but I’m sure those services received some traffic using these ‘links’ that they’ve created.

Now imagine what would have happened if Satoshi Nakamoto himself sent a few hundred satoshi transaction ‘linking back’ to one of these sites. Even though the monetary value of this transaction would be negligible in BTC/USD terms, the amount of traffic these sites received would be huge. That’s because this address has ‘reputation’ , is believed to belong to the creator of Bitcoin, is monitored by the community etc. There’s a lot of attention focused on this address.

But let’s look closer into the economic mechanism at play here. A few satoshi transaction can translate to a several thousands of page views (I’m speculating here about the possible amount of traffic generated but it would definitely be a lot).

So the economic value of this traffic (‘attention’) is far exceeding the monetary value represented by the number of satoshis in the transaction.

The additional value of microtransactions on the Bitcoin’s blockchain lies in the persistent link that is formed between two addresses. These links are the ‘attention currency’ which depending on the context can be much more valuable that the ‘monetary’ value of the transaction.

Satoshi’s 1 BTC is equal to mine 1 BTC if we want to buy coffee. But Satoshi’s 1 BTC transaction carries way more ‘attention value’ than mine (if it originates from the Genesis block).

What I’m trying to emphasise here is that blockchains are mainly considered to be technologies for transferring monetary and financial value. They are the ‘ledgers’.

But we also have an alternative use case:

blockchains as public, open, transparent and immutable link graphs for any types of data.

These link-graphs might form a foundation for the future search engines, social networks or app stores. But this time, they would be public, open and controlled by the users or entities who contributed to the graph.

Today, your likes are stored in the internal ledger of Facebook and your links — in the internal ledger of Google. Of course, technically you might think your links are stored on your self-hosted WordPress blog but they only become valuable by being included in Google’s link graph. No third-party can access these graphs to build their services on top. Or if they can, it’s only through tightly controlled APIs that protect data monopolies.

The necessary components are already here.

Looking at the blockchain ecosystem you can see that components necessary to create non-financial link graphs are already there:

  • identity systems such as
  • blockchain notarization services for timestamping documents — @blocknotary
  • reddit-like blockchain apps like
  • blockchain explorers like with their Public Note features
  • blockchain analytics companies such as Coinalytics or @chainalysis
  • end to end integrated Bitcoin platforms like 21

Most of these companies are focused on providing services to the financial sector… for now. But I believe there’s a bigger opportunity for them to offer services based on non-financial link graphs. I won’t go into details here, but if you work in any of these companies or similar ones — I’d love to talk to you — please reach out to me at @maciejolpinski on Twitter or via the contact form on my website.

Prediction — In the future Attention Economy, attention and value will be exchanged on the same blockchain based link-graph

I believe that we’re heading towards the future where financial graph and the attention graph (web link graph, social graph etc) will be embedded into the same blockchain based system. Whether that’s one Bitcoin blockchain or a mesh of multiple blockchain is yet to be seen.

Today, the exchange of digital value looks roughly like this — financial networks and attention networks are separate systems. The entire industry of advertising platforms makes money by exchanging links/likes for dollars and vice versa.

But I’m convinced we’re heading towards this future where different types of value will be exchanged on the same network.

We’re still years away from this vision becoming a mainstream reality. But interestingly enough, some niche applications can be explored today with currently available technologies. I’ll be writing more about this in the next articles.

I’d love to get in touch with you if you’re building any type of service similar to what I described here.

In any case, if you enjoyed the article please follow me on Twitter @maciejolpinski and subscribe on Medium :)


The model I’ve outlined can be recreated on any type of public blockchain (Ethereum or other) and I used the Bitcoin Blockchain as an example here.

I intentionally didn’t go into the technical limitations and especially scalability issues of the proposed model. Actually, I’ve outlined the same model using a a different set of metaphors in one of my previous articles