The adorable blockchain sensation, CryptoKitties is going beyond virtual cats as the company behind it, Dapper Labs collaborated with Warner Music Group, in order to create a new public blockchain. According to reports, Dapper Labs has managed to garner $11 million in funding for this newest project. Both the companies will work to launch the company’s new blockchain network along with building tokens on top of it.
Warner Music Group, the global music giant, has surely made its place in the world of entertainment, having backed insanely famous and successful artists such as Ed Sheeran and Cardi B amongst others. And after generating a whopping $2 billion in revenue from its streaming technology, the company has its sight set on the blooming blockchain space.
Reportedly, the new blockchain network dubbed ‘Flow’, will be more capable when it comes processing transaction volumes as compared to the Ethereum blockchain, on which the CryptoKitties game is based on.
Transactions on the Flow blockchain will settle in blocks, as with bitcoin and Ethereum. However, while bitcoin transaction settles at about 10 minutes and Ethereum settles about every 20 seconds, Flow is expected to settle in 10 seconds.
CryptoKitties, the game which many in the crypto community have come to love, courtesy the cute virtual cats that players can purchase, collect, breed and even sell; has proven itself in the blockchain and crypto space. Back in December 2017, just a few days after its launch, the game almost broke Ethereum when it single-handedly caused transactions on the blockchain to explode overnight.
That is one of the most important facts that probably drew Warner Music to form an alliance with creator of CryptoKitties. Jeff Bronikowski, Senior Vice-President of business development at Warner Music Group, ardently believes that if the problem with handling the transaction volume can be resolved, then CryptoKitties could be customized in a way to “create a unique, tradable merchandise, featuring the company’s roster of superstar talent”.
Bronikowski reportedly said:
The main goal is to create new avenues where the fans of our artists can explore their fandom and engage with the artists in new and different ways that they haven’t done before
The partnership between Warner’s Music and Dapper Labs has been brewing since May at the Next Web Conference in Amsterdam. Tiago Correia, global digital manager of the music giant, had a meeting with the Dapper team regarding blokchain and how it could be used to form a connection between artists and their fans in the digital realm.
In addition to that, Warner’s is also using this opportunity to dive into the arena of non-fungible tokens, which are special types of cryptographic tokes representing something unique. In Warner’s case it could be digital art signed by real Ed Sheeran for example. Of course the authenticity of it all will be proved via Dapper Lab’s new Flow blockchain.
Furthermore, the media company is also exploring in forming a direct connection of musicians with their fans, without the need of intermediary distributors and how cryptocurrency could help in that aspect by allowing fans to tip their favorite artists.
While this is an opportunity for Warner’s to take a leap into the blockchain and crypto space and be on the forefront of an innovative endeavor for musicians and fans alike, for Dapper Labs it’s an opportunity establish dominance in the market. Aand to prove itself in the rapidly escalating competition of building digital assets with value in the real world as well.
Reports suggest that Warner itself invested less than $1 million in the form of a convertible security for the forthcoming project. However, several big names of the industry are on board this project as well, including Chris Dixon of Andreessen Horowitz, Fred Wilson of Union Square Ventures and David Pakman of Venrock.
All of the investors have agreed that this round of fundraising will be entirely spent on the completion of the Flow blockchain and for developing apps on it. As per reports, for this agreement the investors will be given a traditional cut of the company stock. Moreover they will be given an additional option that will allow them to convert the securities into tokens, which can later be spent on the network. That is after the company receives approval from the Securities & Exchange Commission (SEC).
While much has been revealed regarding the Flow blockchain, details regarding the new flow cryptocurrency and its dispersion to future users is being kept behind tight lips.