[REVIEW] ICO Transcodium - Business Model (Platform Media Editing Directly, Transcoding)

INTRODUCTION

Recently, the world has seen a remarkable improvement in the media industry, i.e. from video advertising to media streaming, however, due to the high cost of cloud transcoding services, it has been very challenging for startups and companies on a low budget who needs these services.

Since the emergence of cloud technology, the transcoding industry has grown at a very large scale. We are well known to companies like Netflix, Amazon Prime, Vimeo, Youtube, and e.t.c, who transcodes terabytes of data on daily basis, investing a large amount of their revenue on media file conversion. The current report also predicts that, by the year 2019, the transcoding market will grow by 15 percent CAGR globally, which reflects a huge scope to flourish.

The concept of transcoding has always been limited to the conversion of video and audio files, however, it has the larger extent to take any type of file like PDF, HTML, Word Document and converts it into any possible preferred format

Transcodium will provide APIs, Console and GUI Applications for customers to aid in a rapid transcoding process. Before processing starts for each transcoding request, the initiator (customer) will be provided with the estimated cost for approval, once approved, the initiator's wallet will be debited for the processing to commence.

The file transcoding process includes two parties, master nodes, and workers. Master nodes receive the transcoding request, they then split large media files into chunks when necessary, encrypts these chunks and forward them to workers.

Workers, on the other hand, are responsible for converting the file into the new format. Any device can be a worker, but not a master node. A master node must have a faster processing power and a strong internet connection. A master node can also serve as a worker simultaneously. Master nodes are rewarded with 20% of the transcoding cost whilst 80% is shared amongst the workers. The master nodes are also responsible for joining the chunks when needed.

Multiple master nodes may process the same request for the sake of data loss. Master nodes have another opportunity to earn from the distribution 7 of the final output to multiple social media or storage platforms which the initiator (customer) will be charged for.

source: https://transcodium.com/files/whitepaper.pdf

| Business Model

Every good business who needs to survive will also need a very good business plan, we believe in the long run, Transcodium will need funds to continue running and maintaining the platform, that is why we have strategically outlined areas which will help raise funds for the company in the long run.

Target Audience

The following below are some industries we intend targeting:

Media Streaming Platforms: Streaming platforms are becoming very popular of late, but all these platforms need to preprocess their media files before storing them persistently and this is where we come into play. We will provide a fully paid 3 months trial account for all the major platforms interested in our product.Companies such as Youtube, Vimeo, Metacafe,Soundcloud, Hulkshare, etc are our primary target.

News Agencies: About 90% of the news circulating on the internet are now adding media support such as videos and audio, that is why we have carefully designed our visual editing tool to support non-technical users, where they can edit, transcode and distribute their media files visually with just a single click to their target audience.
Advertising Networks: After the rapid growth of ad blockers, advertising networks have also made a rapid shift from the traditional banner and text ads to video and audio methods of delivering ads. Our API and console client can help these networks process their media files in a swift of time whiles focusing on their business.

Video Bloggers: Youtube, Twitch, Vimeo, these are some of the best platform available for video bloggers because they can monetize their videos and make an income out of it. The problem here is most bloggers uploads to only 1 platform due to the lack of tools and resources to get their content to multiple platforms at once. Transcodium’s media distribution service was created to solve this mind-boggling problem.With just a click, bloggers can upload their media to about 100+ platforms.
Article writers and publishers: Have you ever wanted to transcode your pdf to word, epub, .mobi or vice versa, if yes, then you might have suffered the same headache every online writer and publisher faces every day. There are platforms which do that very well but way too expensive, an example is aspose.com charging $90/month for the same task charged $20 or lower /month on Transcodium platform. Our platform does not limit to video and audio only, but also multiple files format such as zip, tar, gz, pdf, HTML, word, epub, mobi and etc.
Photographers: Flickr, Imgur and etc has made photography fun, we love photographers and cannot afford to leave them out. That is why we have added support for advanced image editing and distribution to our platform.

Revenue Generation

The Transcodium network is an open source project but with a business ecosystem built around it.Each business addon will be a stand alone product which will help the project operate in the long run.

Service Fee Before a transcoding request is processed, the cost + a 10% service fee of the total cost is calculated for the customer to pay. This 10% fee will be very little that even with it addition to the total cost, our transcoding prices will still be the cheapest compared to the cloud.

Below is the statistics of famous media based website with their usage of media files.

There is a noticeable shift in the user interest towards web series from typical TV series, .video ads are considered more effective than the banner ads above all video blogging and stories on social media are making the world more expressive. Altogether we can see there is a huge scope for transcoding industry to grow even more. The global video streaming market size is USD 3.25 Billion which is expected to grow up to USD 7.50 Billion by 2022.

The above statistics indicates that, the 10% fee will go a very long way to help the company operate independently in the long run.

File Distribution

Master nodes are responsible for the file distribution. Selection of these master nodes will involve a level of trust and based on invitation only. Transcodium company will hold majority of the master nodes due to security reasons because it involves user’s social and storage credentials which cannot be allowed to any third party. Fees paid on media files distribution will be used to maintain these master nodes and also to run the company in the long run. Fees on media file distribution will be based on the type of storage or social media and the size of the file.

Builtin Exchange

Moreover, the Transcodium’s wallet will have a builtin exchange where TNS coin and other cryptocurrencies can be traded, trading using the Transcodium exchange will attract a fee from 0.1% to 0.2% depending on the volume of trade. Below are some of the famous exchanges and their volume with the transaction fee that they charge.

LENDING FEATURE

When workers (miners) borrows from the Transcodium Lending platform, interest are paid to the lenders, a fee will be charged on the interest paid to the lender. This fee will be splitted into two, where 50% goes to the transaction fee on the blockchain whiles the other 50% goes to Transcodium Limited.

Why will Brands Prefer Transcodium over other Competitors?

● Currently, Transcodium has the lowest price, Transcodium price is three times lower than the current cheapest cloud platform ( Amazon Elastic Transcoder)

● Brands will have the flexibility to select from a price from a carefully regulated price range, this will help customer stay within their budget.

● With Transcodium, transcoding will be done in a very fast and parallel mode, thanks to the unlimited computational power made possible by our dedicated workers.

● Files will be transported with a high-grade encryption algorithm to prevent anyone messing with our customer's data

● The possibility of exporting a processed media to over 100 storage and social media platforms in the world with a single click

Facts 87% of online marketers use video content. One-third of online activity is spent watching a video. 85% of the US internet audience watches videos online. Internet video traffic will be 69% of all global consumer Internet traffic in 2017. By 2019, internet video traffic will account for 80% of all consumer Internet traffic. The average user spends 88% more time on a website with video. 100 Million Hours Of Facebook Videos Are Watched Every Day. Per day users spend 100M Hours watching Netflix. Every minute 12 Hours of music uploaded to SoundCloud. Average number of monthly Dailymotion video views is 3.5 Billion

source:https://transcodium.com/files/business_model.pdf

TRANSPARENCY

Utilization of smart contracts will allow transparency on the network, important information such as file duration, the amount initiated and the amount paid to the worker will all be in the ledger. Customers and workers can check how much it costs or get paid for a particular task on the network.

PROOF OF OWNERSHIP

To achieve a better decentralized consensus, the Transcodium network uses a type of proprietary evidence algorithm in which workers are randomly selected based on their portfolio and account age. It helps in selecting workers with a quality processing power that saves time and money.

PROOF OF CONVERSION

Evidence of the conversion between the central node and the worker states that, an employee must complete his duties within the given time, during processing the data, the worker sends the developments to the method, the worker must process the data completely before the deadline on the assignment mark will be canceled or inactive and will pay other workers who are preparing to take over.

The deadline is set based on the transcoding activity being done and the size of the processed data. The contract pays the worker after transcoding and sending the file. Work is considered completed after the file is uploaded and verified by the central node. Proof of conversion will be supported by smart contract. Proof of conversion along with stock evidence makes the TNS regulation responsible for creating random selection of workers and balancing between initiators and processors.

How to become a worker?

Once the device downloads the app, it becomes part of the network. The device will then be ranked by strength, this means users with high-powered GPUs will earn more than someone with a basic PC.

Workers will receive 80% of payments in tokens after the task is completed with the other 20% going into the parent node.

Crowd Funding

To help speed up development and also allow the team to work fuller then Transcodium will raise funds for project development, payroll and future costs using the crowdfunding method.

- Project Development (50%)

- Overseas Company Expansion (3%)

- Marketing & Branding (20%)

- Operational Cost (15%)

- Law & Insurance

- Additional Budget

Token Distribution

- Sales Token (72%)

- Bonus, Discount and ICO fees (4%)

- Advisors & Partners (4%)

- Bounti (1%)

- Team Members (10%)

- Marketing (Current & Future), Provision of trial accounts for customers and platforms.

For unsold tokens after pre sale will be transferred to ICO sales and will have bonus rules according to the main ICO.

In addition, all unsold tokens after the sale of ICO will be retained to support the company in the long run.

if the minimum target is not reached after the main ICO make investor funds will be returned. All are handled by smart contract ethereum and for those other than ethereum, we will send the refund manually to the original shipping address of the originating funds.

Saved tokens for team members will be locked up to 3 months after the main ICO sales. In addition, team members will only receive 25% of tokens after 3-month intervals

Transcodium Token

Token Role - Represents the processing power used for file conversion

Symbol: TNS

Blockchain: Ethereum

Standard Token: ERC20

Supply: 120,000,000 TNS

Sale: 86.4 million TNs

Accepted Currency: ETH, BTC, LTC

Pre Sell Period: 07 / 01/2018 00: 00 UTC to 28/02/2018 00:00 UTC

Minimum goal: $ 500,000 USD

Maximum goal: $ 30,000,000 USD

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