Last year, NFT, a decentralized autonomous organization (DAO) was able to purchase a rare Wu-Tang Clan CD. Another DAO, ConstitutionDAO, was on the verge of raising the millions required to purchase a rare copy of the United States Constitution. DAOs are becoming more popular.
Now, BlockbusterDAO, a blockchain-based hybrid of a club and a company, has set its sights on acquiring the defunct video shop chain “Blockbuster.” It aspires to transform it into a decentralized streaming service that can compete with Netflix.
Having been beaten by Netflix, Blockbuster may rise from the dead
So, what happened to Blockbuster? Blockbuster had significant debts at the time of Netflix’s growth, rendering them unable to compete with Netflix’s technological capabilities. Former Blockbuster CEO John Antioco was said to be interested in purchasing Netflix at one point. It was a fatal decision not to. “Who wants to watch movies on the Internet?” says the narrator.
Blockbuster was the place to go if you were a kid in the 1980s. There was no Netflix, Disney, Hulu, or Apple TVplus back then. One of the several video businesses that appeared on every corner at the time might provide you with your daily feed of flicks.
You could walk for hours, examine film covers, and talk to video shop employees for half an evening about the latest B-movie flick in these lovely huge temples of cinematic art. There was a canned beer and a movie from the video library instead of Netflix & Chill. Blockbuster was the king of video retailers at the time. It was, after all, in America. It never progressed beyond a trial run of 20 outlets in Germany.
Blockbuster was on the verge of bankruptcy due to a series of poor mistakes. But then there was Netflix. Reed Hastings and Marc Randolph came up with the notion of sending DVDs out through mail-in 1997. The videocassette had lately been supplanted by DVDs. The films could be copied faster and for less money after they were digitized. And, unlike VHS, the quality did not deteriorate after viewing.
Hastings and Randolph put their idea to the test by sending themselves a DVD, and it worked. As a result, in 1998, they established the first online DVD rental and selling service.
Netflix’s rise, on the other hand, was not a plain success story. According to Hastings’ book “No Rules,” he and Randolph sought to sell their freshly established firm, Netflix, to Blockbusters in 2000. Netflix’s new home, according to Hastings, will be “blockbuster.com.”
There, the chain might make shipping DVDs its primary business and keep up with the times. But John Antioco, the managing director at the time, flatly refused and pushed the two out of his office, eventually declaring bankruptcy eight years later. As the experience of Blockbuster and Netflix demonstrates, some people recognize change while others succumb to it.
Decentralized autonomous organizations, or DAOs, are organizations that are not centralized. They are a web-based company that is owned and controlled by its members collectively. Proposals and votes are used to make decisions, ensuring that everyone in the company gets a say. Or, like the ConstitutionDAO, is the BlockbusterDAO doomed to fail?
A distributed autonomous organization (DAO) is one that operates without the requirement for a central authority. The DAO code contains the spending rules, which are not centralized. The rules can only be changed by a vote of the whole DAO membership.
To be scalable,’ BlockbusterDAO would have to spend a lot of money. No one wants a risky streaming platform or a non-decentralized DAO. The ‘trilemma’ refers to the idea that decentralized networks only give two of the three benefits of decentralization, security, and scalability.
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