Content creators

Here’s what content creators and entrepreneurs need to know about Web3

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Creator economies and NFTs are huge unlockers of human potential. It doesn’t matter whether or not certain assets are in a short-term bubble; we are on an inexorable path towards individuals rather than institutions.

As more and more individuals take control of their own economic well-being and potential to generate wealth, we are on the verge of a creative explosion. Individuals will be able to develop and scale increasingly complex initiatives and enterprises using powerful technical and financial instruments. Over the next two decades, we will see many publicly traded companies with just one full-time employee, the founder, making billions of dollars in profits.

Those who go it alone or let the market determine the value of their skills are beginning to make a good living in the creator economy. It is increasingly easier for people to make a living doing what they are good at due to the globalization of the talent market.

Previous web iterations merge for more opportunities

Web1 was about decentralized, community-governed open protocols. There was a lot of value generated by network users and developers. The Web2 era was all about centralized, enterprise-managed services. A small number of companies, such as Google, Apple, Amazon and Facebook, have reaped the bulk of the benefits from user data and content. As we enter the era of Web3, the decentralized, community-driven philosophy of Web1 is merged with the enhanced, modern capabilities of Web2 to create a new paradigm for the Internet. Web3 is a token-based internet that is controlled and built by its users.

The life cycle of a centralized platform is predictable. First, it does all it can to attract users and third-party add-ons like developers, producers, and businesses. This is necessary to increase the power of its collective influence. A platform’s control over users and third parties steadily expands as the adoption S-curve increases. S-curve relationships evolve from a positive sum to a negative sum, and to continue to grow, the platform needs to get data from its customers and compete with (former) partners for that data.

There is a sense of attraction and change for third parties as the shift from collaboration to competition occurs. Successful entrepreneurs, developers, and investors in the business know not to rely on centralized platforms for their work. Thus, new ideas were suppressed. Decentralization of ownership and control is a feature of Web3. Non-Fungible Tokens (NFTs) allow users and developers to own Internet services. The ability to own part of the Internet is granted to users through the use of tokens.

Related: NFT: The New Foundation of the Virtual Economy

Users can own part of the Internet

It’s possible to own anything you can imagine in the form of NFTs – from art and code to music, game items and access cards. NFTs are built on blockchains, a decentralized global computer owned and operated by its users. Everyone has the ability to use blockchains, but no one alone owns or controls the blockchain; it is distributed.

We can use Ethereum as an example. Ether (ETH) is the currency of the system, used to reward the real machines that power it. The system’s native currency, like NFT purchases, is ETH. Fungible tokens and non-fungible tokens can be obtained in different ways. If you don’t want to pay them, there are ways to earn them, like completing tasks on freelance sites. Early adopters of Uniswap governance tokens received a 15% airdrop. In Web3, community grants like this are becoming more common as a method of generating goodwill and encouraging the adoption of these new technologies.

Tokens can also be earned through creative and entrepreneurial endeavors. It is estimated that people earn around $100 million in ETH every day selling NFTs. Network participants have a common goal to achieve, which is to increase the size of the network and the value of the tokens. Other crypto participants are turning to decentralized finance (DeFi), to earn passive income by staking their crypto coins and earning rewards based on locking their coins into protocols such as liquidity mining and crypto farming.

For example, Marco Di Maggio, professor at Harvard Business School and advisor to Sperax, notes how stablecoins in DeFi can be algorithmic and gain yield in a safe way. “The Sperax protocol allows for exactly that dynamic…allows a starting point where most of it is 95% guaranteed, and then as the scale increases, you end up being more and more algorithmic over time .” He goes on to explain how crypto users can use Sperax as an arbitrage opportunity to keep the stablecoin tight. These are powerful concepts that crypto users use every day, all thanks to Web3.

Centralized networks have a fundamental flaw: value is concentrated in the hands of a single company, which leads to conflicts with its own customers and partners. In the absence of Web3, consumers and developers have been forced to compromise between the restricted capabilities of Web1 and the core business paradigm of Web2.

Related: Users Need a Strict, Unbiased, and Unholy Search Algorithm

Towards more value

It is possible to combine the best features of previous periods with Web3. This movement has only just begun, so now is an excellent time to commit to it. Due to these radical technologies replacing the Web1 and Web2 protocols, the events of our daily lives are changing. Meetings and administrative expenses will become more visible and unnecessary as this software becomes more fluid. When humans interact with each other to develop something outside the usual framework of a business, blockchain opens up new options to reduce transaction costs.

There is no magic formula for the evils of the Internet, and decentralized networks do not exist. But they offer a great alternative. As another example, take a look at network governance. Many crucial governance choices are now made by anonymous groups of online members all sharing the same vision, including how material is sorted and filtered, which users are promoted and which are banned. With respect to the governance of Decentralized Autonomous Organizations (DAOs), these decisions are made by the community through open and transparent processes. Democracies aren’t perfect, as we’ve seen in the real world, but they’re far better than the alternatives.

Related: A Company Without a CEO, Employees, or Mission Can Raise $200 Million

When it comes to building online services, many people have forgotten that there is an alternative to centralized platforms. Third-party developers, producers, and businesses benefit from Decentralized Autonomous Organizations (DAOs) because they enable the creation of community-owned networks. In the early days of the Internet, we saw the benefits of decentralized systems. Maybe we’ll see it again in the future.