When we first heard of the idea to use Bitcoin bounties to track down pirated content online, we scratched our heads.
Snitching on copyright infringers is not a new concept, but the idea of instant cash rewards though cryptocurrency was quite novel.
In theory, it’s pretty straightforward. Content producers can add a unique identifying watermark into movies, eBooks, or other digital files before they’re circulated. When these somehow leak to the public, the bounty hunters use the watermark to claim their Bitcoin, alerting the owner in the process.
This helps to spot leaks early on, even on networks where automated tools don’t have access, and identify the source at the same time.