Web 3.0: Gearing Towards The Creator Economy

Updated: Feb 10

A new layer for the internet to as Web 3.0, promises to decentralize and democratize the existing internet infrastructure, giving it back to users and creators.


Key Takeaways

  • Web 3.0 is the next iteration of the internet that will consist of decentralized applications (dApps) and services provided by peer-to-peer cryptocurrency miners.

  • It is designed as a global project that operates on open-source protocols available to anyone to inspect and contribute to the network.

  • The next iteration of the internet gives creators complete ownership of their creations and allows data portability.

web 3.0 - the creator economy

Internet is no longer free

The idea behind Web 2.0 was that internet users could interact with platforms to create and share content instead of being just users. This is why it was also called a two-way or participatory web. In this way, people were not only consuming information, but they could be active participants in its creation and sharing process.

The most popular example of Web 2.0 is social media (Facebook, Twitter), where people produce information with their updates (their photos, their opinions, etc.) that the platform can use to serve them ads to generate revenue for its investors. Websites like Wikipedia, Reddit and Quora are other examples of websites that allow user participation within a closed ecosystem.

The current internet is organized around siloed platforms that control digital information flows. The centralized platforms are the gatekeepers of information, and although they allow for user participation, this participation exists within the boundaries set by these platforms authorities. Web 3.0 reverses these centralizing forces to empower end-users and individual creators.

Web 3.0 is emerging, and with it, a new, decentralized web of peer-to-peer transactions in which people share and exchange information directly without the need for third parties. The third stage of the internet will empower creators in previously unimaginable ways by giving them direct access to their audience and real-time information about its behaviour.

What is Web 3.0?

The concentration of power in the hands of a few companies has come under sharp criticism from decentralization advocates who believe that this kind of model does not provide enough transparency and openness to continue increasing internet usage.

Web 3.0 is the next iteration of the internet that will consist of decentralized applications (dApps). It allows interactions between users and other parties directly, without any interference from third-party organizations. Due to the functionality blockchain technology provides, users can interact with anyone anywhere in the world freely, securely, and privately.

It also allows for peer-to-peer exchanges of data, allowing anyone with storage space and internet connectivity to monetize their extra resources and participate financially in running a node on a decentralized network. These services are known as decentralized storage networks, where all computers involved in such networks work together to provide users with secure access to their files regardless of whether those users are nearby or located around the world.

Web 3.0 is designed as a global project that operates on open-source protocols available to anyone to inspect and contribute to the network. The networking protocol used by Web 3.0, known as InterPlanetary File System (IPFS), allows users to access all of the data stored on decentralized storage networks via content-addressable hyperlinks.

Web 3.0 game-changing features and benefits to the creator economy

web 3.0 nft artist

Creators struggled to monetize their creations in the past due to illegal duplication. NFTs came to provide uniqueness and digital scarcity that give digital creators some power. NFTs have verifiable on-chain records that allow creators to incentivize a few fans with bragging rights and exclusive access rather than depend on millions of fans.

Consequently, Web 3.0 encompasses social tokens that will give creators control over their relationships with fans. The social tokens encourage more direct creator-fan engagement. The fans' support towards the creators is an investment since the creator’s success translates to the token’s success.

The current internet iteration doesn’t offer creators a share of the revenues in the platforms. Web 3.0 brings a fair conversion rate into play so that platforms do not exploit creators. The centralized platforms earn 100% from the content creators provided free. For instance, Jack Dorsey, former CEO of Twitter, plans to decentralize the platform so that the comment section will have a communication feature enabling creators to monetize communication.

The need to own one’s creation renders Web 3.0 a more viable option for creators. When leaving a centralized platform in Web 2.0, creators risk losing their fanbase in those platforms. Web 3.0 comes in here to bring data ownership and enable portability. Creators will have complete ownership of their audience even when they leave a platform. Thus, Web 3.0 gives creators voting rights and ownership of the platforms they have created. Ownership drives the philosophy of a user democratic process and gives users more ways of making money.

Decentralized autonomous organizations, DAO, are community-oriented platforms owned and operated by their members. Rules, regulations, memberships, and responsibilities are recorded in an immutable digital ledger. The creator economy will benefit from DAO when community members monetize and decide the features they need on the platform. Profit-oriented platforms would have otherwise made the decisions in Web 3.0. Thus, DAO’s unique structure allows creators to sell or rent out their talents and time in return for earnings and flexibility. Creators can leverage this structure to facilitate ownership of the system governed and operated by the community.

Entering the decentralized era

Web 3.0 is not something that will happen overnight; it's a project like any other, requiring time and patience for new applications and concepts to become mainstream. However, the increasing amount of people using decentralized systems has been growing exponentially over the last few years, which is why many believe that we're entering into a Web 3.0 era right now.