Library Credits Explained: Viral Content on the Blockchain
The Library Credits project aims to use blockchain to solve problems of copyright and ownership of digitized content
The Library Credits project strives to be the YouTube and Netflix of the blockchain. The specialized network both carries and sells content for its native Library Credit tokens.
The Library Credits blockchain project claims to solve the problem of content censorship and centralized control. Its content is divided and distributed over the network, and cannot be censored, shut down or limited for some geographic areas.
The Library Credits Token
There will be a total of one billion Library Credits. Currently, only around 68 million tokens are in circulation, which puts the LBC token around position 88 on CoinMarketCap.
The token is supposedly used to pay for content and there is an additional payment system to avoid loading the main blockchain with payments.
But since the Library Credits software is still in beta, and there is limited content compared to the current services available, the token is mostly used as a speculative asset.
It had its run in the summer of 2017, almost reaching $1, but fell to the current positions around 20 cents. At one point, the market cap of LBC tokens was about 1/4 that of Ethereum.
The LBC token is traded mostly on Bittrex and Poloniex, with a very thin slice of trading against the Chinese Yuan. So there is little effect of the panic that spread on the markets.
But this also means that this token may be pumped or pushed artificially by whales, as it trades against Bitcoin.
Library Credits Names
One source of value, if the project takes off, would be Library Credit names. These are unique account and content handles that may steer users to one producer. The project creators expect competition for the best names.
The names ensure there are no fake accounts or duplicate content. They somehow resemble Ethereum addresses, some of which are already bought and sold.
The Library Credits Team
This project has a large and solid team, which among others includes programmer Jack Robinson, famous for almost facing a prison sentence for his YouTube videos of chemical explosions. The team contains Bitcoin enthusiasts, business and legal advisors.
Despite this, currently the software is still in Beta version, and Library Credits is still a long shot from becoming the decentralized YouTube.
Library Credits Wallet
If you do not want to keep your LBC tokens on Bittrex or Poloniex, the installation of the LBRY software also includes a desktop wallet. You need to manually locate the wallet files and copy them to a secure location, and then you can renew your wallet when you install the software on a new machine.
Problems and Criticism
While the LBC tokens may allow for some fast trading gains, the project itself has some gaps when it comes to a promising future.
Since Library Credits relies on content, there is still little clarity on how users would get incentives to store the data. There is also little explanation on why creators would choose this platform- and without artists and content producers, the platform would be useless.
Also, a stash of coins and tokens are outside circulation, kept in large whale wallets.
The top 5 wallets hold most of the tokens- and while for now there is no incentive to sell, there is no telling what the future structure of the LBC token supply will be, especially with publicity programs and other channels of distribution.
The Verdict on Library Credits
Library Credits was a late-2016 ICO that held everyone's attention for a while, as ICOs usually do. But from then onward, the product seems to be stagnating and the token has sunk into obscurity.
LBC is not a good token for beginner investors, and liquidity is rather low as traders move their attention elsewhere. Still, LBC shows some understanding on how blockchain technologies can revolutionize the current state of the Internet. But we may have to wait quite a bit for a complete and working version.