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- 1 Advancements in Web3 from the previous version can boost the growth in the creators’ economy
- 2 Adoption of Web3 can bring positive change to the creator’s economy
- 3 Decentralized apps can increase the control and reach of the data
The main guiding principle behind the development of the web to the third version is Decentralized Autonomous Organization (DAO). In this new version of the web, users will be able to govern their own data on a decentralized platform with a fair internet connection. It revolves around Blockchain Technology. This enables creators to monetize their content using blockchain technology. Technology advancements allow users to own their data and rewards; rewards are mostly in the form of digital collectibles. The use of cryptocurrencies and NFTs along with blockchain technology enables new ways for creators to monetize their content and build more direct relationships with their favorite brands, allowing more businesses to explore advanced versions of relationship marketing.
The size of the creator’s economy has gone up to $100 billion in the year 2022 and it is still growing. This will even grow further with YouTube expanding to shorts, Facebook, and Instagram pushing content through reels, and TikTok’s launch of Pulse. Other ways that are supporting the growth of the creator economy are AI tools such as ChatGPT and DALL-E to generate content with the rise of live streaming platforms like Twitch and increasing interest in podcasting.
With the growing size of creators’ economy, an issue that creators were facing with centralized platforms is that algorithms determine the reach of their content with applications such as Instagram and YouTube thus the majority of creators struggle to generate much income from their work. Now with the development of Web3 technologies like cryptocurrencies and NFTs (Non-fungible Tokens), they can gain full control of their work and directly reach out to their viewers.
Within Web3 applications, public blockchains are the core pipeline for all the transactions and interactions that take place. They are public ledgers of records that are decentralized and immutable. It is a global database that does not require any permissions and has the ability to track the ownership chain of any content or data that is created blockchain at any time by anyone. With the growth of cryptocurrencies, the utility of blockchain is extended to all kinds of data. The Web3 libraries provide application programming that interfaces to bridge blockchain and smart contracts.
Let us now discuss in detail the factors that differentiate web3 from previous versions and benefit its users: Decentralization, Tokenization, Community, Interoperability, and Openness.
Web3 enables greater control over content, data, and revenue for content creators by eliminating the dependencies on intermediary platforms which used to take a large cut of creator’s earnings. Web3 facilitates the creation and exchange of digital assets or tokens that can represent anything from a piece of art to virtual land. Tokenized economies allow them to monetize their creations in new ways. It can create communities for creators and can be incentivized by token rewards, access to exclusive content, and social recognition. It enables connectivity between different platforms and ecosystems to encourage interaction between various creators helping them reach new audiences and generate greater value from their work. Web3 is built on open-source technology which encourages collaboration and innovation with new products and services.
There would be a few challenges for Web3 and these are Issues with Adoption by Masses and Issues concerning Latency. Looking at the current market situation it is known that not every content creator is familiar with blockchain technology or the decentralized web. In order to extract the maximum benefits from the evolution of the web, its adaption is necessary. Secondly, Latency is an issue for decentralized networks and applications. Currently, the centralized systems use cutting-edge technologies that increase the network speed.
Conclusion
With the growth in the size of the creator economy, it is important for the economy to adopt advanced technologies of Web3 and blockchain. This growth will attract new members to the economy by facilitating improved reach to customers and better management of their content.
These advancements in technology give rise to decentralized social media platforms such as Taki where all the users have a stake in the network and can earn rewards for each content that they share which for now, they share with the centralized platforms in the form of profits. There are a few risks involved with the development of Web3 such as (i) Lack of Regulation and Oversight as there are no written laws or regulations to see how this ecosystem operates. (ii) Transfer of Illegal items as there are low chances of traceability so illegal media can easily be transferred. (iii) Accuracy of Information, as there is no central authority controlling the transfer of information.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
