There’s a brewing change in the creator economy, where creators have control and are well-positioned in the driver’s seat. Popular creator platforms such as Tiktok and Instagram provide limited opportunities for creators, neglecting ad revenue and subscription options. A few benefit from this – mostly creators who have many followers. These platforms take a large share of the income from creators and provide little in return. The creator economy consists of artists, dancers, musicians, basically anyone who creates content for fans.
By providing an enabling environment, web 3.0 technologies such as blockchain, virtual reality, and cryptocurrencies will breach the difference for creators. They will allow creators to have more control over their work, monetize it and collaborate with others. A decentralized economy will ensure the creators are treated better and more fairly. The focus is on solving real-life problems with web 3.0 technologies. With great monetization channels for creators, web 3.0 will unlock incredible levels. The future of the internet is bright, ready to drive results and hit giant strides. Building creator connections alongside compelling content will shape the face of the creator economy. But how exactly does web3.0 intend to create these impacts in the creator economy?
Let’s dive in!
What Is the Creator Economy?
For many years, traditional media have always controlled most of what we listen to and read. Televisions and radio stations distributed content through visual and audio means. As a result, people read newspapers, publications and movies created by editors and journalists. Now, the creator economy has made it easier for people to consume content without the help of traditional media. As a result, more and more brands partner with content creators to increase brand awareness.
We can refer to the creator economy as something similar to the content economy. The principle of the creator economy is straightforward. It involves creating something to make money. The content created can be distributed on various available creator economy platforms. Individuals who use the internet to earn a living through content creation or influencing make up this economy. They don’t just exist as regular users that use social media; knowledge and skills are required. A survey report by Signal Fire shows that approximately 50 million people worldwide are part of the creator economy. The statistics show that many people can earn a living even from the comfort of their phones.
There is little recognition of tools for monetizing content for creators on some platforms. However, creators can share their content with application software and tools. The rich ecosystem supports creators, consumers, platforms, and businesses to distribute and monetize content.
What is Web 3.0?
Web 3.0 is also known as the third generation internet. This is because it features processing information in a human-like way. In addition, machine learning, blockchain technology, virtual reality, and big data are embedded into websites and apps.
The third generation internet provides technologies that decipher information conveyed by a database. Three major defining features provided by web 3.0 include:
Web 3.0 can store information in multiple locations, thereby providing decentralization. Furthermore, users can retain ownership of data from these databases through decentralization.
Users can interact with data anywhere without going through a governing body. For example, an Instagram user can take pictures and share them instantly with anyone anywhere – although web 2.0 has similar features. Web 3.0 takes this feature further with the Internet of Things (IoT) technology, where different smart devices will be available.
Through technologies such as machine learning and artificial intelligence, computers will be able to imitate the human learning process. The advancement will enable better results in the creator economy, unlike the previous internet generations. AI allows the internet to separate the genuine from the fake to provide more relevant data.
Web 3.0 Creator Economy
The problem with the creator economy is the unavailability of decentralized platforms. However, with web 3.0 technologies, a new set of rules shifts the focus and values of the creator’s assets. It’s about providing direct creator-community relationships; web 3 creators and their communities can enjoy the values they provide on platforms. The web 3.0 creator economy provides a fairer ecosystem with a human-centric economy.
Intellectual property is set to play a major role in economic growth. There are no intermediaries in the economy – just you and your audience. The connection is direct, and you create an integral part of every community for your audience.
How Web 3.0 Monetization Works
New technologies lead to a new era for the web 3.0 economy. Cryptos and tokens can provide financial freedom for creators who enjoy creating content online. Some web 3.0 startups are looking into crypto tokens as a way for creators to monetize on platforms.
Based on the content quality, the creator possesses more tokens and the value increases as more transaction occurs. The web 3.0 creator has control over these tokens. Imagine the possibility of buying digital music from the popular acapella group, Pentatonix, using Pentatonix token, minted and controlled by the group – super cool, right? Web 3.0 can benefit all small or big creators through creator-economy crypto.
The Future of Creator Economy
The creator economy market size drastically increased during the COVID-19 pandemic as people turned to platforms with the hope of supplementing income or getting rid of boredom. As a result, the market size has grown to over $104 billion, with more than 50 million people considered content creators worldwide.
Creator economy startups create tools and services to tap into this economy and grow their enterprise. Top creators benefit more from the creator economy, while others struggle to make their voices heard. Opportunities are endless in the creator economy; as more people access the necessary tools, the growth expands.
The truth remains that content monetization helps the economy’s growth, and web 3.0 technologies provide exciting changes for creators. Moreover, the growth of the creator economy is dependent on technology, and a lot of innovations are required to keep the space running in the coming years.
Creators have the opportunity to control their content, unlike before. The introduction of web 3.0 technologies will put more power into the hands of creators. This could birth a different creator economy, where creators are not one-sided, fans are connected, and content creation gets the respect it deserves. The change to web3 is not outright, but now is the time to discuss and devise means for a new digital universe.