The advancement of blockchain technology, which provides a proven history of digital information, is creating new values and societal structures unlike anything seen before.
Amidst this, Dentsu Group Inc. has launched a proof-of-concept experiment for " ghost Link." This initiative uses blockchain-based NFTs (non-fungible tokens) to enable viewers to utilize TV content as creators through derivative works.We spoke with Junichi Suzuki, Producer at Dentsu Innovation Initiative (DII) within the Dentsu Group and also serving as a Director of the Blockchain Consortium for the Commercialization of Blockchain (BCCC), about the "ghost Link" scheme and its potential.
Launched as a pioneering project looking ahead to the Web3.0 era
Q: In March 2022, DII, the R&D organization of the Dentsu Group, announced the start of a proof-of-concept experiment for "ghost Link," an NFT utilization scheme for television content in the Web3.0 era, in collaboration with seven companies including Asahi Broadcasting Corporation. Before we delve into the details, could you briefly introduce your background?
Suzuki: I joined Dentsu Inc. International Information Services Inc. (ISID) as a new graduate in 2000 and spent many years developing mathematical models for international financial systems using financial engineering.Specifically, this included developing derivative trading algorithms for institutional investors and creating algorithms for portfolio management. These algorithms ensured stable, medium-to-long-term operations across diverse investment assets like government bonds, equities, corporate bonds, private equity, and hedge funds in developed markets such as the US and Europe.
Later, while jointly responsible with a U.S. company for systems enabling automated execution of syndicated loans and M&A transactions through advanced mathematical models and security technology, I simultaneously handled SWIFT (Society for Worldwide Interbank Financial Telecommunication) operations—a system operating in stark contrast, being "centralized" and involving "multiple intermediaries." This dual role led me to contemplate the cost structure of international financial transactions.This period coincided with the emergence of services like PASMO and Edy in Japan, marking the widespread adoption of financial services provided by non-financial institutions such as railway companies and e-commerce operators. Among these, peer-to-peer transfers like Edy to Edy, peer-to-peer lending platforms like PROSPER,and the emergence of "P2P-type" file-sharing services like Winny. Witnessing how disruptive ICT was shifting society's creative source "from organizations to individuals," I co-founded the ISID Open Innovation Laboratory (InnoLab) in 2011 with Nobuhiko Watanabe and others. This new organization focused on harnessing individual power through technology prototyping.
At Inolab, we handled a wide range of projects: from futuristic, large-scale initiatives like exploring advanced information defense by combining blockchain and quantum technologies with researchers from CERN (European Organization for Nuclear Research), to projects tackling everyday challenges, such as applying ICT to food supply chains for organic vegetables and wines to improve agricultural traceability and create stable business environments for producers.Subsequently, with the establishment of Dentsu Innovation Initiative (DII), an organization driving R&D across the entire Dentsu Group, I transferred to Dentsu Inc. in 2019. Currently, having joined the Dentsu Group mid-career, I focus on Web3.0 technologies like NFTs and contract wallets,NFC (Near Field Communication), and IOWN (Innovative Optical and Wireless Network).
Dentsu Group Inc. Junichi Suzuki
Q: Is this "ghost Link" project also one of a series of blockchain-based initiatives, given its use of NFTs?
Suzuki: Yes, that's correct. One aspect of our research activities involves extending NFTs—which have primarily been confined to the digital world, such as owning NFT art—into the physical space. "ghost Link" was specifically initiated as a project to facilitate the utilization of NFTs for creators.
"Derivative works" using manga-based NFTs. Applying the rights licensing mechanism to TV content
Q: You mentioned "ghost Link" is for creators' NFT utilization. What prompted the idea to link NFTs to creators' creative activities in the first place?
Suzuki: Regarding NFT utilization for creators, there's prior research like the " n-th Distribution Project " from 2020, led by Dentsu Inc. and Kadokawa ASCII Research Institute, Inc., which leveraged blockchain technology for content monetization. This was a joint project with companies possessing extensive content like manga and anime, as well as firms with expertise in ICT technology, infrastructure, and copyright.
While only the original creators hold the copyright (rights pertaining to the primary creation) for content like manga, anime, and novels, numerous instances of secondary creations—where fans create new content based on this primary material—and even tertiary creations based on those, were observed on video streaming services and social media.Examples include users on video streaming services reciting manga dialogue with their own character interpretations, or creating illustrations of characters based on their personal interpretations on social media.
Such nth-generation creations are often highly likely to be perceived as "illegal" content infringing on the original author's rights. However, there are also voices suggesting they can have positive effects for the original author. For instance, when someone whose native language is Thai translates and shares parts of a manga into Thai, it can increase the fanbase overseas.Traditional copyright and content distribution systems, however, cannot properly evaluate such activities. Therefore, we attempted to create a monetization mechanism using blockchain technology. This mechanism allows creators and publishers—the original authors—to collaborate with secondary creators, enabling both parties to receive incentives when secondary creations are viewed or consumed.
Concept Diagram of Secondary Distribution
Suzuki: We initially targeted manga content. Specifically, we linked participants' Web3.0 wallet accounts to their distribution app accounts, granting fans the right to distribute manga narration content as NFTs. When viewing distributed content, the NFT ownership status determines whether it is official.Official distributors—the secondary creators—receive "rewards" such as tips from viewers and improved engagement metrics. A portion of the tips received by secondary creators is automatically returned to the original author.
Linking NFTs to derivative works not only provides legitimate incentives to both original creators and creators involved in derivative works, but also helps stimulate derivative activities that enhance content value. It also builds relationships between original creators and trustworthy users who enhance content value without violating public order and morals. The incentives here extend beyond monetary rewards.For example, creators with large dedicated fanbases are offered non-monetary incentives, such as the right to read new works before public release. Consequently, it was observed that influential distributors tend to prefer non-monetary incentives over monetary rewards.
This "ghost Link" incorporates numerous insights gained from the "nth-generation distribution project." The target content shifts from manga to TV dramas, envisioning nth-generation derivative content in more flexible formats like illustrations, stories, music, and video.Furthermore, as an additional application of NFTs, created content can be commercialized using "Infinite Objects (IO)". This involves encapsulating videos within photo frames in a tamper-proof manner and linking them to NFTs to provide proof of ownership.Other possibilities include printing on physical items like mugs for sale. Our partner IO possesses video printing technology (physically storing video in an unalterable form) and holds significant brand value within the NFT space, akin to high-end apparel brands where "being sold here guarantees high quality." The ability to commercialize through IO is a highly attractive feature for creators.Furthermore, the necessary wallet setup (services for storing digital assets like crypto and NFTs) utilizes technology from the joint research partners. We are simultaneously verifying a secure and highly convenient NFT transaction flow.
Attracting new user segments with the concept of content "possession"
Q: That said, the project name "ghost Link" certainly has quite an impact.
Suzuki: The content serving as the basis for secondary creations in this "ghost Link" project is the character "Onryo Magatsuhi" from the VR drama 'TOKYOCASE' produced by ABC. Within the project's worldview, we describe the act of granting NFTs that enable the character to unleash new powers as "possession." The concept is that through this NFT possession, creators gain the ability to freely create, reproduce, and distribute content inspired by "Onryo Magatsuhi."
Q: How has the response been since the announcement?
Suzuki: For the March 14, 2023 announcement on the program's official SNS, we had media artist Yoichi Ochiai create and distribute a video showing the process from acquiring the NFT to creating derivative works, which generated significant buzz.For the work submissions accepted until April 15th, we received a diverse array of entries—not just illustrations, comics, and videos featuring the Magatsuhi vengeful spirits, but also visuals and character designs for new characters envisioned for sequels. The response was so enthusiastic that we ended up adding a special director's selection award beyond the originally planned Excellence and Participation awards.
We believe we have successfully achieved our initial goal of utilizing the "ghost Link" mechanism to explore the potential for forming a creator community interested in NFTs within the television content domain.
"ghost Link" is an initiative that significantly expands the potential for derivative works based on content through the participation of many creators. While NFT technology has often focused on monetary revenue aspects, it now holds promise for evolving toward discovering and nurturing creators, forming creator communities, and even serving as a license for engaging in creative activities related to specific IPs.
In the second part, we will delve deeper into how society will change in the future through the next developments of "ghost Link" and the utilization of NFTs based on the many cases handled by Mr. Suzuki.
In 2017, he launched the international conference body "Table Unstable" with CERN and others. Since then, he has attempted to solve social issues such as climate change and folk crafts by integrating traditional knowledge with advanced science and technology. As a spin-off activity, he promotes the outreach program "Yoichi Ochiai Summer School," aimed at training researchers. He concurrently serves as a member of the MIT Technology Review Advisory Board for Innovators Under 35 Japan, a Visiting Associate Professor at the Open University of Japan, and a Director of the Blockchain Promotion Association (BCCC).
