How will Web3 change the creator economy?

According to iResearch’s “2022 Internet Creator Economy White Paper”, the creator economy refers to “Internet content creators generate economic benefits with the help of creation tools, content distribution platforms and a series of other creator-related services.”

Among them, the statement of Internet creators was actually born in the era of web2.

Websites in the web1 era consisted of static pages, and the vast majority of users were just consumers of content. In the era of web2, the interactivity and usability of websites have increased, coupled with the optimization and upgrading of mobile terminals, users can interact and collaborate with each other through media, thereby becoming creators of user-generated content in virtual communities. Douyin, Weibo, Zhihu, Douban… Examples of mass participation in content production can be seen everywhere.

However, the creation and production of Internet content is not the same as the creator economy. Although the concept of “creator economy” originated in the web2 era of the democratization of web content creation, its real realization will be in web3.

Web3 technologies—including virtual and augmented reality, machine learning, artificial intelligence, blockchain, smart contracts, and more—will solve the problems encountered by creators in the web2 era, revolutionizing the way content is created, claimed and paid, Driving the advent of the creator economy.

Web3 addresses ownership issues

Internet content creators in the Web2 era mainly rely on tech giants that provide services and platforms, and these centralized companies hold the censorship/audit rights of their works.

At this time, if the platform believes that the creator’s content does not conform to their policies, they can prohibit uploading or delete it. Therefore, the creator actually lacks creative freedom. I believe that many people have also encountered the videos, articles, or videos uploaded by themselves. Reviews are accidentally removed.

In addition, the platform cannot solve the problem of piracy and illegal copying well in the face of a large number of content production. For example, on Douyin, the explosion of a celebrity will cause a large number of people to imitate, and his works and personal information are often stolen.

In this case, it is often difficult for the “plagiarized person” and “the person to be misappropriated” to successfully defend their rights, and the rights and interests of the creators have been greatly infringed.

Web3’s blockchain technology and smart contracts can solve these problems well. A fundamental property of blockchain is that once something is on the chain, it cannot be altered or counterfeited. So by using NFTs based on blockchain technology, the content starts to be owned by the creators.

As a proof of ownership, NFT verifies the authenticity of the content and effectively avoids the risk of counterfeiting or misappropriation of the created content. The Web3 era is an era of decentralization. Creators can publish and sell their works independently without relying on centralized platforms.

In this way, the power of censorship/moderation of platforms and tech giants is eliminated, and the phenomenon of taking down and deleting creators’ works ceases to exist, further protecting creators’ ownership.

Additionally, at Web3, users can selectively present personally identifiable information, proving their identity while protecting their privacy.

According to Baidu Encyclopedia, “A smart contract is a computer protocol designed to inform, verify, or execute a contract. Smart contracts allow for trusted transactions without a third party, which are traceable and irreversible.”

If blockchain technology confirms the rights of creators, smart contracts record the transfer of ownership in the transaction of works, ensuring the transparency and security of the process. Together, blockchain and smart contracts solve the problem of unclear ownership of content created in the web2 era.

Web3 increases creative revenue

The creator economy is a brand-new business model arising from the rapid development of the Internet. It is based on a large group of Internet creators and needs to bring good economic benefits to creators.

In the Web2 era, because of the reliance on centralized companies that provide platform services, a large part of the creator’s income must be paid to the third party as a service fee, and the final income of the creator is very small compared to the third party’s profit.

Here are some examples that might be more intuitive: On Spotify, each song played by a paid account only generates $0.004 in royalties; only 0.33% of YouTube creators earn full-time income; on Amazon, only the top 1% of authors earn Earn $1,000 in one month; after Bilibili opens creative incentives, the revenue per 10,000 views is about 17 yuan.

Creators in the Web2 era are more likely to use advertising to make money than to create content itself.

But in Web3, everyone can truly have the opportunity to get corresponding rewards and attention through their efforts. As mentioned above, creators can publish and sell their works independently on Web3.

Therefore, the income of the work no longer needs to be shared with third-party institutions, and the creator can more directly obtain more income from the content creation itself. At the same time, Web3’s technologies such as virtual reality, augmented reality, artificial intelligence, and machine learning can also expand the way content is created.

In the period of traditional media, content refers more to written works; in the period of new media and media integration, the content covers video, text, audio, etc.; and then to Web3, the so-called content creation will be more closely integrated with technology and derived In addition to text, video, and audio, there are more forms, such as NFT art, digital people, etc.

The increase in content forms and creation methods means an increase in income channels for creators, which also provides opportunities to increase creative income on the other hand.

Web3 perfects the development ecology of creator economy

At Web3, blockchain technology puts power in the hands of content creators like never before. In addition to the ownership and income issues mentioned above, content creators can also plan their own careers and have the right to formulate their own series of terms related to their works.

For example, creators can use blockchain technology to regulate the price range of works and the benefits of fans, and creators can directly manage related platforms and websites.

In addition, Web3 can also solve the problem of difficulty in tracing the source of content in the past. In the world of the Internet, many content creations are based on the works of predecessors, such as “ghost videos” and film and television commentaries.

As far as the creator economy is concerned, the creators of these predecessors should be paid accordingly. However, under the current conditions, after rounds of creation, it is difficult for many works to trace their adaptation history. With NFT, the source information will be recorded on the blockchain, immutable and publicly visible.

At the same time, through the smart contract, the adaptation object can also be directly given the corresponding remuneration. In this way, in the case of a wider recognition of the value of content, the creators’ creative enthusiasm will be greatly mobilized.

Then again, in Web3, fans and content consumers can directly participate in the creator economy. The decentralization of websites and platforms has shortened the distance between creators and fans, and fans have the opportunity to have a deeper understanding of the creation process and connotation of works.

Fans get a certain amount of content ownership by purchasing NFTs, and when the value of NFTs rises or the creators are on fire, they can get huge rewards from them. This will incentivize fans to invest in creators and even sponsor fledgling newbies.

So far, a complete creator economic ecosystem has been formed, in which content producers and consumers at all levels can participate and have the opportunity to profit.

summary

Web3, covering technologies such as blockchain, smart contracts, virtual and augmented reality, machine learning, artificial intelligence, etc., can help Internet creators realize ownership confirmation, increase creative income, and promote the formation of a complete creator economic ecosystem.

Combined with what Bill Gates said – in order for the Internet to flourish, content providers must get reasonable remuneration from their works, Web3 will undoubtedly make a great contribution to protecting the rights of creators and prospering the Internet.

Of course, there are still many deficiencies in the current Web3, such as immature related technologies, too few participating users, and NFT being over-hyped. In order for Web3 to develop better and faster, these problems must be paid attention to and solved in time.

Considering the fact that countries in the world have successively exerted their efforts in the field of Web3, we have reason to believe that the era of Web3 will come in the near future, and a better economic ecology of creators will also be realized at that time.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-will-web3-change-the-creator-economy/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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