Web3’s breakthrough path: social graph, creator economy and SaaS

French sociologist Talde pointed out in his book “The Law of Imitation”, “In the process of human transformation, there are few new inventions, and more transformation and imitation.” To achieve a breakthrough in Web 3, it is necessary to straighten out the current parallel and actually conflicting logical paradoxes, and find their breakthrough points and feasible paths.

In the face of VC’s step-by-step encroachment, the cramped living space also has sparks of fire, we will use belief and technology to expand the territory, gather all the developers to attack the city and conquer the land until the counter-kill against the rentiers is completed; facing the wasteland of the scene , we have never felt barren, the social graph, the creator economy, and SaaS have been waiting for the next day. All false gods that hinder progress will be eliminated, and all new gods will be placed in the shrine for people to worship; facing the technological gap, the development kit will be complete. Make more technical tools face users directly, and decentralization will deconstruct the role of the platform at the technical level…

Newton once said: If I see farther than others, it is because I stand on the shoulders of giants. This time, starting from the ground floor, we will go to build the ninth-floor platform together.

Bottom Layer: Reinvention of Faith and Advancement of Technology

In the process of Web 3 construction, in view of the dilemma of its internal mechanism, a reflection on its underlying logic is required to adapt to the new situation.

1. Reconstruction of Faith

Without faith, there is no decentralization. Everything has a decentralized solution. Uniswap has used AMM to reconstruct the matchmaking. Bitcoin has used PoW to achieve an objective performance of consensus. Web 3 has SBT, PoS mechanism and the expectations and consensus of all users. It has emerged that in order to move towards a more diverse DeSoC society, it is far better to start taking action than to sit still.

All information can be captured by Web 3 and generate corresponding value – yes, all information! These values ​​can be circulated, naturally have value, and everything has value.

This is the foundation of belief on which the opportunity that Web 3 brings to our revolutionary application space rests. The beliefs that were blown up by the hype and bubbles in the currency circle in the past have gained trust again in development and practice.

For example, Brave, the most widely used privacy browser, has launched Goggles, a search mode in the Web 3 era, trying to provide more relevant search results without touching more privacy of users. Combining the advertising service with its own token BAT is already a very mature attempt in business. If it goes further, the backend is completely constructed on the blockchain and the information is stored on IPFS, then it can have the ability to reconstruct the Internet interactive interface of magic.

Web3's breakthrough path: social graph, creator economy and SaaS

2. Technology first: innovation gradually spreads

Web3's breakthrough path: social graph, creator economy and SaaS

 Source: Wikipedia

In the innovation diffusion curve, we can see the transformation process of Web 3 from Innovator to Early Adopter. Although this value is still small in terms of absolute market share, desktop, enterprise-level, and basic facilities are gradually being built. It belongs to the process of gradual diffusion of technology.

For example, the Crypnote note-taking tool is already a product with a very high degree of completion. In the past, note-taking products such as Evernote and Onenote needed to face the problem of data migration, while the Web 3 backend was directly built on the blockchain storage network.

Web3's breakthrough path: social graph, creator economy and SaaS

What kind of Web 3 applications will technological innovation bring us, even if it is a possibility, this is the meaning of our analysis of the breakthrough under the paradox. Let’s talk about what exactly Web 3 products will look like.

Social: From SocialFi to Graph Evolution

As an important cornerstone product of Web 3.0, social products have no need to say much about their strategic significance. The social pronoun given to Web 3.0 by history will not be the so-called SocialFi, but an upgraded new format – “social graph”.

Why can’t the currently popular SocialFi do this? SocialFi, commonly known as “social money exchange”, refers to the use of Tokens in Web 3 to stimulate users to use products. Take BBS Network as an example, 50% of its tokens will be distributed to active users – how can the activity be improved by token “cheating”?Of course, it is to create “high-quality” information, so that more active user traffic from followers and subscribers can be imported. No matter how strict the audit mechanism is, as long as there is a mechanism for exchanging activity for tokens, “making data” will survive. space.

When the turning point of “Function > Hype” is reached, what can really retain users is to meet real needs, and the product cycle will be lengthened, and finally replaced by an updated mechanism. This is a “whale fall” of natural death, and then everything grows. However, the current socialFi does not have a model design for suppressing spam, and the existing governance mechanism will fail under the stimulation of Token – Twitter is used to obtain new knowledge, but such SocialFi applications are used for profit motives.

Profit-driven is an unavoidable problem. The socialFi of “social money exchange” will not be the main social category of Web 3. In the long run, there will be new native social applications. “Social Graph” is the forerunner that dances with the times. The social graph is the “graphing of social relationships”, which refers to the relationship in which there is no central node and relies on the blockchain network to directly couple and transmit social relationships between individuals.

When the social networking site in Web 2 is upgraded to the “social graph” in Web 3, what changes?

Web3's breakthrough path: social graph, creator economy and SaaS

Let’s take a look at how information flows on traditional social networking sites:

The first point is that in the existing social network, there is a phenomenon that the information flow and data flow flow in the opposite direction. The information flow between users is a two-way flow. If I follow you, if you return to me, we can see each other. information content, but the data behind the content is not synchronized with the information flow, but is stored on centralized platforms, such as twitter and Weibo;

The second point is that the information flow between individuals does not flow in a direction with the same weight, but will tilt towards KOLs and institutional accounts, and will form various types of “centralized” nodes in the process of dissemination;

Third, after the data is collected by the platform, it will be made into API interfaces with different permissions and then sold. So it is the flow of data, not the flow of information, that can really be monetized. For example, opening a membership is essentially the platform selling user-created content. If the profit from selling data can cover the operating expenses, it is equivalent to the platform’s invisible and legal “exploitation” of individuals, which is also the real business model of platform traffic.

Let’s look at the information flow method of the Web 3 social graph – in a word: information flow and data flow should flow in the same direction, and the relationship can be tokenized, there is no center, and there is no difference.

Web3's breakthrough path: social graph, creator economy and SaaS

For the centralization trend of content, the cross-chain and interactivity of social graphs will naturally resolve this problem. Decentralized social applications should be componentized. In different groups, I can exist as an edge node and a central node at the same time.

At present, products in the transition stage from Web2 to Web3 have been practiced from this perspective. For example, Tiktok, through cooperation with ImmutableX, launched Tiktok Moments to make popular videos into NFTs, and sales revenue will mainly flow to content producers and NFTs maker. Further, if anyone can make their own social content and social relationships into NFT, or even issue tokens, it is the real direction of Web 3 socialization.

To sum up: Why isn’t SocailFi the future, while the social graph concept is more likely to succeed?

First: the junk information brought by the Token attribute cannot be eliminated;

Second: There is still a trend of content centralization among top KOLs, institutions, and commercial companies. Ordinary people naturally prefer stars and celebrities with their own halo.

The social graph is expected to solve these two problems.

The social graph also needs an upgraded privacy system to escort, that is, the “on-chain credit system”.

Online social networking does not necessarily require a real identity. If it is an ordinary exchange of information and you just want to have fun, you don’t need to care about the role of the other party in reality.However, if financial transactions are based on addresses, identity verification must be required, and the information verification function is bound to become an infrastructure, as important as ChainLink.

The current labeling function path is to continuously record the activities of a certain address. When enough historical data is accumulated, we can use public information to make user portraits for it, which is effective for giant whales, exchanges, and institutional wallets. But what if the Web 3 wallets that will be used by young, old, women and children will be popularized in the future?

“Knowing who is dealing with you” is a very real need. If the Web 3 algorithm is optimized in place, it is possible to make a high-accuracy judgment based on the credit system without knowing who the other party is. For example, users of the contact verification tool Go+ Security can verify more than 360,000 tokens on the Ethereum chain, including more than 180,000 risky addresses and more than 20,000 phishing websites.

Creation: From NFTs to Content Monetization

The basic evolution of the creator economy is as follows:

In the Web 1.0 era, creation is a natural behavior based on the desire to share, there is basically no profit model, and it is a beautiful utopia;

In the era of Web 2.0, the centralized monopoly platform controls the valve and flow of information flow, and the creator can basically only get a small part of the profit;

In the era of Web 3.0, because there is no centralized traffic distribution platform, creators can take most of the profits.

For creators, “The Internet without a center is a good Internet!” From the most basic text creation, the problem with Web 2.0 is that the platform monopoly is too prominent, so that we ignore the creative ability is the fundamental problem. In the Web 3 world, “creation itself” begins to emerge from the ground up.What really limits dissemination is the ability to consistently produce content, not so-called channel restrictions. Really high-quality content cannot be limited to a certain channel. In a market environment with full market competition, if it is suppressed, it can go to the opponent team.

The value of Web 3 lies in the real return of the creative right to the hands of individuals for the first time, with the purpose of creation itself and the value orientation of permanent retention. Such a Web 3 creator economy is indeed worth our expectations. Envision a fair, more rewarding creator-friendly economy where Web 3 will be their main stage, and can expect a fairer environment for quality creators to realize value.

It should be noted that Web 3 is not omnipotent – although everyone is truly equal in terms of communication access threshold, there will still be individual differences in content production ability and communication ability. a historical norm. Take Planet produced by V2EX as an example. This is a blog-like tool for content creation and sharing. It is completely based on IPFS as the storage backend, but in its default interface, Dolphin Forest is also the default subscription object.

Web3's breakthrough path: social graph, creator economy and SaaS

Taking NFT as an example, the main problem in its development is that the existence and content of OpenSea King are highly concentrated in the field of PFP.

From OpenSea dao to LOOKSRARE, to the “rise” of the Magic Eden market on Solona, ​​what are we seeing?After repeated attempts, the heat death after the frenzy, the rich categories and the user habits cultivated by the first-mover advantage, this long assassination may continue for a while, until the savior appears.

From the perspective of creator economy, we see a high degree of centralization of NFT platforms and creators. Because what users really want is high-quality content, and they don’t “care about” the degree of decentralization. Looking further at the NFT trading category, we will find that it is less decentralized, because the top trading category is PFP. Although other categories briefly occupy the top of the sales list every day, Yuga labs is the Deep State, accounting for the vast majority of NFTs. Market share, including BAYC, MAYC, Meebtis, Otherside, and even ApeCoin based on ERC-20 issued by NFT. 

Web3's breakthrough path: social graph, creator economy and SaaS

But there is still hope – such as the new development of RRS3, Crossbell, as a content monetization platform, the main goal is to return the data sovereignty of individual content creation to the creator. Crossbell is an ownership platform and information generated by social activity will be the initial form of ownership of user data on Crossbell. Where it is a game changer is the ability to empower users to take back ownership of their data through a built-in capital design. At the same time, Crossbell is designed with an emphasis on information interoperability, which means that third-party applications can be developed on this basis in a friendly manner.

Web3's breakthrough path: social graph, creator economy and SaaS

A wider range of NFT usage scenarios can exist in GameFi, Metaverse, and DeSoc. Only by making NFT more popular and entering more application scenarios can the dividends of the creator economy fall to more people. For example, Polygon released a new NFT Minter, which allows the use of custom programs to create NFTs without gas fees, and is making bold attempts to encourage the public to monetize NFT content.

Content monetization is the functional direction of NFT to be further developed in the Web3 era. Content monetization can be understood as the tokenization of personal value. When human beings begin to enter the Web 3 world more frequently and widely, no matter what form of creation, it will be fully guaranteed as a basic “human rights”.

SaaS: From To B to To C

In the existing online world, SaaS seems to be an exclusive product for enterprises, and To B is justified, such as Jetbrains’ development tools, Dassault’s industrial design software, and EDA in the field of chip design. In the Web 3 world, SaaS will provide a possibility of To Anyone. In addition to the social graph and the creator economy, SaaS tools are underpinning the Web 3 vision.

From To B to To C, it is not only a change in the use of objects, but also a re-upgrade of the production relationship. In Web 3, SaaS will become a ubiquitous infrastructure that anyone can build by themselves and provide integrated applications or API interfaces for various types of users to use.

The reason is that whether it is social networking or the creator economy, product design is basically based on the relationship between “people and people”, and To C applications will become the main breaking direction of SaaS. If we want the infrastructure to continue to move into more service areas, it must go to the lower level L1 expansion, even hardware devices, just like ASIC miners do.

At present, there is a solution based on secondary services of existing products. The most typical one is IPFS, which has free trial and unlimited capacity. If a commercial service can be built on the basis of it, it is basically equivalent to prostitution.

Web3's breakthrough path: social graph, creator economy and SaaS

For example, the office suite service of Skiff decentralized mailbox + cloud document can be used for personal daily writing and communication, and can also replace the office suite of Google workshop, and is completely based on IPFS. If the communicating party also uses a Skiff account, all records of email communication and cloud document collaboration between the two parties will be kept on IPFS without going through any centralized server.

The emergence of such applications, on the one hand, shows that the current IPFS has the possibility to provide commercial services after years of development; on the other hand, we must also see that such products still have heavy imitation traces, and still need long-term development. to explore new product models.

Taking the analysis tools of the blockchain market as an example, due to the transparency of the information on the chain and the frequency of transactions, there has always been a market for professional analysis tools, but there are also barriers. Although individuals can directly analyze the information on the chain, it is obvious that this difficulty requires the technical level of developers and is not friendly to ordinary people. Is it possible to break the game?

Tools such as Dune and Nansen have created the myth of $80 million in financing and a $1 billion valuation, and such tools are easier to “infrastructure” because they do not need to include transaction functions themselves, and even functional modules are It can be customized by users, only need to open the SQL interface. In essence, this is a pipeline device. The project opens up API interfaces and documents. Users continue to query and accumulate data. When user habits are cultivated, the traffic formed will have commercial value.

Web3's breakthrough path: social graph, creator economy and SaaS

The moat of this tool lies in user habits and data accumulation, not in the difficulty of development. It is a different design logic from Chainlink – Chainlink is an infrastructure recognized by everyone, because oracle data requires high-precision accuracy, not because of The interface is better-looking or a few more functional modules are easily replaced.

This is the scenario iteration of SaaS from To B to To C, and the business opportunities it brings.

The current Web 3.0 is still in its infancy, and we need Web 3 to truly transition to an era where users and services support the profit model, so that it can go a long way. At the end of the article, let me review the breakthrough path of Web 3.0 again. Under the guidance of belief reconstruction and project first, whether it is moving towards a graph-based social product, or a creator economy that monetizes content, or upgrades from To B to To C. SaaS software…all announces the arrival of a future lifestyle to the public with a “lonely brave” attitude.

Maybe there are still various problems with Web 3.0, and maybe practitioners are still confused in the dark night, but these stripped-down analyses are not denying Web 3.0. Our original intention is to do our best to avoid a kind of fanatical fishing, and prevent once encounters like the beginning of this century. The Internet bubble, many people are about to fall into a bear market of extreme denial and doubt.

Web 3.0 may still be very long, and it may require multiple iterations. Maybe the “lonely brave” who bowed into the game will be broken into sand, and the project will be in ashes, but it is like a glimmer of light leading to the future world. In an instant, a full screen of stars illuminating the future world. “To the whimpering and roaring in the dark night, who said that a hero is the one who stands in the light”…

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/web3s-breakthrough-path-social-graph-creator-economy-and-saas/
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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