Today’s web applications are almost unrecognizable from those of its early days, thanks to a lot of evolution. The web has often evolved into three stages: Web 1.0, Web 2.0, and Web 3.0. In spite of the differences between web2 and web3, decentralization remains a fundamental principle. In addition to improving the internet as we know it, Web3 adds a few other features. A web3 developer rarely builds and deploys applications that run on a single server or use a single database (usually managed and hosted by a single cloud provider). A crypto economic protocol using web3 applications runs on blockchains or decentralized networks of many peer-to-peer servers. You will likely see this word frequently while browsing web3. One common term for these programs is “apps” (decentralized apps). Decentralized networks are built through network participants (developers) incentivized and competing to provide the best services. The discussion of web3 often involves cryptocurrency. Several of these protocols heavily rely on cryptocurrency. Tokens provide a financial incentive to anyone who wishes to create, govern, contribute to, or improve a project.
Web3 uses Identity differently than what we are used to today. Most web3 apps will tie identities to the wallet addresses of users interacting with the application. Suppose the user publicly links their identity to their wallet address. In that case, wallet addresses remain completely anonymous . Using the same wallet across multiple DApps allows the user to build up their reputation over time since their Identity is seamlessly transferable. Authentication and identity layers are already being replaced by self-sovereign Identity by protocols like Ceramic and IDX. The Ethereum foundation also has a working RFP for the definition of a “Sign in with Ethereum” specification, which would allow a more streamlined and documented process moving forward. There is also a good thread that details some of the ways this would enhance traditional authentication.
The path to becoming a Web3 artist has never been easier for aspiring creators and NFT enthusiasts. Building a community, networking, and establishing value for your work are all essential components of thriving as an NFT creator. In the creator economy, people monetize their passions, hobbies, or interests online just like everyone else. As a result, platforms can make creators money by allowing them to do what they love. Creating content for their fans is a common practice among YouTubers and TikTok’ers.Unfortunately, this leads to limited revenue opportunities, such as merchandise, subscriptions, advertising, or tipping, which are only sustainable for creators with large audiences.
To make matters worse, platforms today take too much income from creators. For example, music artists on streaming platforms receive about 10% of their entitled royalty, while record labels receive the rest. Most do not make it possible for creators to be discovered through their algorithms, and only a few provide direct ownership, allowing everyone to profit.
Creators can experiment with new monetization channels and content formats with Web3, opening up a new chapter in the Creator Economy. Today’s modern Creator Economy is being forced to rethink how influence can drive results just as influencer marketing hits its stride. Authenticity, deep connections with consumers, and compelling content will still be the hallmarks of good influencer marketing. How will Web3’s focus on a decentralized internet impact the relationships between creators, agencies, and brands? Are there any ways that Creators can help brands explore the budding Metaverse meaningfully – and include consumers in the process? The most significant issue facing most creators today is the indirect compensation they receive for their work – they work tirelessly to excel in the industry, increasing social platforms’ ad revenue and the stock price at any given time. This greatly impacts the income potential of creators. Creators and their fans can connect through Web3, which is based on the principle of creating a decentralized internet. We can expect this to increase the influence of creators who take steps now to establish themselves. In addition to enabling fair compensation for their work, these technologies enable creators and their communities to curate and own their creations using machine learning, AI, blockchains, smart contracts, and cryptocurrencies.
A nano-influencer may benefit the most under this shift as trustworthiness has become increasingly critical to their success. Authenticity is at the heart of what Web3 promises. As a result, it will potentially be a place away from the control and influence of big business, and those who find success will be those who can earn the most trust from their audiences. While many say those who profited the most from Web2 will likely lose out under Web3, agency leaders must pay close attention to this shift and determine where we can fit in. As brands migrate to Web3, the best practices we’ve lived by for Web2 may become much more complex. Some brands will be able to generate huge revenue through NFTs, while others may want to activate their presence and engage in the Metaverse instead. Changing to Web3 won’t happen overnight, but now is the time to start advising clients to be ready and stay close to their agencies to succeed.NFTs, P2E games, and DAOs have been shaping up nicely in Web 3.0 recently. But there is still a lot to do, and the technology of the Metaverse has a lot of room to grow that will allow us to become wholly immersed in it. A new open and decentralized world reality will emerge in the virtuality of Web 3.0. Web 3.0 and the Metaverse look exciting.