Fintech Linius has turned to blockchain to try enhance its virtual video technology
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Fintech Linius Technologies (ASX:LNU) is one of the latest ASX companies to tout the use of blockchain in its product offering.
The company’s core product is its patented Video Virtualization Engine (VVE) technology that allows users to personalise video content.
That includes a search function, so users of a given video — from breaking news to corporate communications — could theoretically search for specific words or actions within that video.
Since launching its VVE technology a year ago, shares in Linius have fallen from 13 cents to below four cents. The stock price rose by 9 per cent to close at 3.6 cents following today’s announcement.
Put it on the blockchain
As part of its product offering, Linius says it has completed a successful test run where it embedded a virtual video on the blockchain.
The value-add proposition is largely around security; Linius reckons that embedding video content on a blockchain enhances anti-piracy protections.
It will also allow video content owners to have “complete visibility and control” over their video content.
To prove the technology works, Linius says it took several virtual videos stored on Amazon Web Services, and created a smart contract on a private version of the Ethereum blockchain.
It then successfully uploaded the videos onto the blockchain, and executed the smart contract to retrieve the contract and ensure its validity.
CEO Chris Richardson said Linius’ video virtualisation technology is a key part of the process, because “with traditional video, a blockchain would be impossibly big”.
“Virtual videos are ideally suited to digital assets, which can be recorded, transferred and managed by a blockchain,” he said.
Bringing it to market
The company’s ambition is to bring technology to market that will significantly alter how users consume video content.
So far though, commercial progress appears to have been slow going.
Stockhead has asked Linius for comment on what tangible commercialisation strategies will be created through the use of blockchain technology.
The company’s 4C filing for the December quarter showed no customer receipts in the six months to the end of last year.
Quarterly cash outflows were just over $3 million, with $1.1 million spent on research & development and a further $1.02m on staff & recruitment costs.
Last week, the company lodged a 3B application with the ASX for an additional share issue of 1.25 million ordinary shares.
As at the end of December, the company had just over $5m in the bank.