Social interaction has reached higher levels with new technologies. Creators and influencers create hype about the online economy. People now prefer content creation over traditional jobs to get compensated fairly. According to The Influencer’s Club, the creator economy was valued at over $100 billion in 2022. Over time, it is anticipated to increase. The Statista report suggested that during the first quarter of 2022 alone, Youtube’s worldwide advertising revenue reached $6.9 billion, a 14% year-over-year increase. Despite these, creators face numerous challenges. The major problem is that they promote their content on centralized platforms. These platforms work on algorithms affecting content reach. But, How does Web3 development come in?
Web3 development allows creators to break free of centralized platforms, gain complete control of their content, and establish direct relationships with their fans. In this article, we will look closer at the drawbacks of centralized platforms and the impact of Web3 development on the creator’s economy.
Drawbacks of Centralized Platforms
- The first and foremost concern regarding the centralized server is control and ownership. Creators have to rely on server owners to maintain control over their content. Somehow, if terms of service change, creators may lose their work.
- Centralized platforms like Facebook, Instagram, and Youtube have strict content moderation policies. The user accounts of creators may be suspended or demonetized due to subjective interpretation of rules.
- Revenue sharing has always been a subject of discussion. Creators need to share a portion of their earnings with the platforms they utilize. Sharing the revenue limits the ability of users to monetize the content the way they want.
- If the server experiences downtime or gets hacked, it can affect the entire workflow. Recently, when Meta servers were down, the users of Whatsapp, Instagram, and Facebook were agitated about not being able to use these platforms. Creators will thus be unable to access their content or serve their audience.
- There have been several privacy concerns related to centralized servers. These platforms share the user’s information with advertisers so that they can show relevant ads based on their activity. There is a risk of data breaches or unauthorized use of their content.
The Impact of Web3 Development
Content Creation: Using different tools, formats, and distributions can increase content quality. With Web3 development, creators can offer content in real-time. Decentralized platforms store content. An example of such a platform is LBRY. The blockchain-based platform LBRY allows users to publish content such as videos, music, and books and receive payment from readers or viewers without relying on third-party services like YouTube or Spotify.
Contracts, Ownership, and Royalty: Smart contracts automate payment and reward processes. They will ensure creators are paid promptly. Smart contracts can also protect ownership rights and ensure royalty payments are accurate and on time. For example, a smart contract can automate royalty payments to a musician when their song streams on a streaming platform.
Copyright Infringement: Creators can protect their intellectual property rights. Web3 development is based on the blockchain. With the blockchain, creators can establish proof of ownership and track content distribution, preventing unauthorized use. This helps to ensure that creators are credited and compensated for their work fairly while protecting their interests.
Direct Monetization: Creators can receive direct payments from their fans in cryptocurrencies. Transitioning to Web3 will free creators from intermediaries. This shift towards direct monetization allows creators to keep more of their hard-earned revenue, leading to enhanced economic freedom and security. For example, the Brave browser enables users to support their favorite content creators by sending tokens directly from their wallets without an intermediary.
Collaborative Opportunities: Creators can form decentralized communities to connect with like-minded individuals. Web3 development encourages collaboration, knowledge sharing, and innovation, leading to a more diverse creative ecosystem. Through these decentralized networks, creators can work together to create projects that would have been too large to tackle on their own. They can also find potential partners for joint projects. They can also draw on each other’s knowledge and experience for more creative solutions to existing problems.
Although creators owe their existence to Web2, Web3 development presents several opportunities in front of them. They can get full recognition for their work. Web3 has granted complete ownership to them for their work. This is the best time for creators and their fans to begin the Web3 journey. Blockchain App Maker can make your vision into reality if you are stepping into the realm of Web3. We can create an interactive platform exclusive for creators and their loyal fans.
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