Kim Dotcom, the founder of Megaupload, recently appeared on the RT network’s Keiser Report to discuss the progress of his bitcoin-powered service Bitcache and the launch of Megaupload 2.0 (MU2).
During the interview, Dotcom explained that each file transfer encrypted by a third party service provider will be linked to a bitcoin microtransaction that will operate as the core component of its cloud-based affiliate program.
In traditional media and advertising markets, an affiliate program means a system where individuals are incentivised with a referral fee or commission when a customer visits a particular web resource. Within the MU2 network, Dotcom’s affiliate program may enable content providers that drive direct traffic to the Megaupload platform to be incentivised through bitcoin micropayments.
Each time the cloud-based content is viewed on the Megaupload platform, the network may transfer a very small fraction of payment to the content provider that drove traffic to its affiliate program. As more users or customers continue to view and click the affiliate link, the content provider will receive more micropayments as a reward.
“On top of that, we’ll have a solution called Bitcache where every file transfer is linked to a microscopic bitcoin transaction. So, we’re utilizing the blockchain, utilizing this new digital currency and linking it to every file transfer kind of like an affiliate program and the combination of those two things will break new ground,” explained Megaupload founder Kim Dotcom.
Considering that Bitcache will be integrated into the new Megaupload cloud storage service as its core component, the MU2 development team will most likely utilise the bitcoin micropayment system as the basis of an affiliate program that will essentially link each file transfer to a transaction broadcasted on a public ledger.
However, Dotcom still has failed to specify how Bitcache could overcome the scaling limitations of the bitcoin network and its other technical restrictions to be able to handle an unlimited number of micropayments and transactions.
Joseph Young
