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Long tail licensing

Team ‘Long Tail Licensing’ (Richard, Pavel, Gary and yours truly) took part in the Fintech startupbootcamp hackathon at the weekend.

As the team name suggests the plan was to implement a system of payment and licensing for products in the long tail, i.e., a large number of low value products. Paypal is good for long tail payment but does not provide a way for third parties to verify that a transaction has occurred (in fact Paypal does its best to keep transactions secret from everybody except those directly involved).

Our example use case was licensing of individual Github repositories. Most of today’s 3.4 million developers with accounts on Github would rather add more features to their code than try to sell it; the 16.7 million repositories definitely qualifies as a long tail of low value products (i.e., under £100). Yes, Paypal could be (and is) used as a method of obtaining payment, but there is no friction-free method for handling licensing (e.g., providing proof of licensing to third parties).

Long Tail Licensing’s implementation used cryptocurrency for both payment and proof of licensing (by storing license information in the blockchain). For the hackathon we set up out own private Bitcoin blockchain to act as a test rig, supply fast mining and provide near instantaneous response.

To use Long Term Licensing a developer creates the file .cryptolicense in the top level directory of their repo; this file contain information on the amount to pay, cryptocurrency account details and text of licensing terms. A link in the README.md file points at our server, which validates the .cryptocurrency file and sets up a payment transaction from the licensee’s Bitcoin wallet; the licensee confirms the transaction and the payment is made.

The developer’s chosen license information is included in the transactions blockchain, providing the paperwork that third-parties can view to verify what has been licensed. This licensing information could be in plain text or use public key encryption to restrict who can read it (e.g., eBay could publish a public key that third parties could encrypt information so that only eBay’s compliance department could read it).

The implementation code includes links to private servers and other stuff that it should not be be; hackathon code is rarely written with security in mind. So those involved would rather it not be pushed to Github (perhaps it will get tidied up and made suitable for public consumption at a later date).

We did not win any of the prizes :-(. Well done to Manoj (a frequent hackathon collaborator) and his team for winning the $100k of Google cloud time prize.

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