On smart contracts and digital content monetisation

OLUSEGUN AFOLABI

Olusegun Afolabi has a first degree in biochemistry from the University of Ilorin, Nigeria, and a master’s in computer science from Hertfordshire University in the United Kingdom. He is an AWS solutions architect professional, a Microsoft certified Azure solutions architect expert, co-founder and chief innovations architect of Face Technologies UK Limited. He can be reached at … and on Linkedin: https://www.linkedin.com/in/olusegun-afolabi-307931184/

The internet has transformed how content creators earn a living, shifting from ad-based models to direct monetisation through subscriptions, memberships, and pay-per-view content. However, traditional digital payment systems still rely on intermediaries — platforms that take a significant cut of a creator’s revenue. Enter smart contracts, a Web3 innovation that is revolutionising digital content monetisation by providing automated, transparent, and trustless transactions.
From independent artists to large media companies, smart contracts are changing the way creators get paid, protect their intellectual property, and interact with their audiences. But how exactly do they work, and why are they such a game-changer?

What are smart contracts?
A smart contract is a self-executing programme stored on a blockchain that runs when predetermined conditions are met. Unlike traditional contracts, which require a third party (such as a lawyer, bank, or payment processor) to enforce them, smart contracts execute automatically when the agreed-upon terms are fulfilled.
For example, if a musician uploads a song to a blockchain-based platform and sets a price for access, a smart contract can automatically transfer payment from the buyer to the artist as soon as the user unlocks the content — no middleman required.
Smart contracts bring efficiency, security, and fairness to content monetisation. Once written and deployed on a blockchain, they cannot be altered, ensuring transparency and reducing the risk of fraud.

How smart contracts are changing digital content monetisation
1. Instant and fair payouts for creators
Traditional content platforms, such as YouTube, Spotify, and Patreon, often delay payments and take substantial commission fees — sometimes up to 30 percent of a creator’s earnings. In contrast, smart contracts enable real-time payments without intermediaries.
Example: A writer who publishes an article behind a paywall on a decentralised platform can receive instant microtransactions from readers using cryptocurrency. The smart contract ensures that once a reader pays, they immediately gain access to the article while the writer gets paid directly. This removes waiting periods, reduces transaction fees, and ensures creators receive the full value of their work.

2. Transparent revenue sharing for collaborators
Many content creators collaborate with others — co-writers, editors, musicians, designers — but traditional platforms make it difficult to fairly distribute earnings. With smart contracts, revenue sharing can be automated and programmed into the contract.
Example: A YouTuber and their video editor agree to a 70-30 revenue split. With a smart contract, every time a user pays for access to exclusive content, the blockchain automatically splits the payment and sends the correct share to both parties.
This eliminates disputes over revenue, ensures fair compensation, and promotes collaboration in creative industries.

3. Decentralised subscription models
Subscription-based platforms like Netflix, Patreon, and OnlyFans rely on centralised companies to manage payments and content access. These platforms can change terms, ban creators, or withhold funds at any time. Web3-powered smart contracts introduce decentralised alternatives where subscriptions are directly managed on the blockchain.
Example: A content creator can launch an NFT-based membership where users pay a one-time fee to access exclusive content. Instead of recurring monthly payments, holders of the NFT get lifetime or time-limited access based on the smart contract’s logic.
By cutting out centralised platforms, creators can retain more revenue and have greater control over their business.

4. Reducing piracy and unauthorised use
Piracy is a major issue in digital content, with creators often losing revenue when their work is distributed without permission. Smart contracts help enforce digital rights by controlling how and when content is accessed.
Example: A filmmaker releases a new movie as an NFT. The smart contract ensures that only verified buyers can stream the movie, preventing unauthorised sharing. Additionally, if a buyer resells their NFT, the filmmaker receives a royalty automatically, providing continuous revenue from secondary sales.
This gives creators greater control over their intellectual property while ensuring they benefit financially from every transaction involving their work.

5. Crowdfunding and direct fan support
Instead of relying on Kickstarter or GoFundMe — where platforms take a percentage of funds raised — creators can use smart contracts for decentralised crowdfunding.
Example: A game developer sets up a smart contract fundraising goal. Supporters send cryptocurrency to the contract, which only releases funds once the campaign reaches its target. If the goal isn’t met, funds are automatically returned to backers.
This increases trust and transparency while reducing platform fees and potential scams.
Challenges and limitations of smart contracts
While smart contracts offer numerous benefits, they are not without challenges:
• Technical complexity – Creating and managing smart contracts requires programming knowledge (e.g., Solidity for Ethereum). Many creators may need assistance from developers.
• Blockchain fees – Transactions on popular blockchains can be expensive, especially during high network congestion. However, newer blockchains like Polygon, Solana, and Avalanche are working to reduce costs.
• Legal and regulatory uncertainty – Laws regarding smart contracts and blockchain-based payments are still evolving. Some governments may impose restrictions that affect how creators can use these technologies.
• User adoption – Many consumers are unfamiliar with cryptocurrencies and blockchain wallets, which could slow down mainstream adoption. Platforms need to offer user-friendly interfaces to make the transition easier.
Future of smart contracts in content monetisation
As blockchain technology matures, smart contracts will likely become an integral part of digital content monetisation. Emerging trends include:
• NFT-gated content access – More creators will use NFTs to grant access to exclusive content, replacing traditional subscription models.
• Cross-platform blockchain integration – Platforms will adopt multi-chain compatibility, allowing users to pay with various cryptocurrencies without needing multiple wallets.
• More accessible no-code solutions – Companies will develop tools that let creators deploy smart contracts without coding knowledge, making blockchain monetisation more accessible.
• Mainstream adoption – As businesses like Twitter, Instagram, and Spotify explore Web3 integrations, smart contracts will become more widely accepted in the creator economy.
Smart contracts are redefining digital content monetisation by eliminating intermediaries, enabling instant payments, enforcing digital rights, and creating new revenue models. They offer a fairer, more transparent, and more efficient way for creators to earn money online.
While challenges remain, the potential for Web3-powered monetisation is too significant to ignore. As more platforms adopt blockchain technology, smart contracts could become the foundation of a more creator-friendly digital economy — one where artists, writers, musicians, and content creators truly own and control their work.
The future of content monetisation is decentralised, automated, and driven by smart contracts—and it’s just getting started.