Content Monetization In The Web3 Era: Evolution And Developments

Social media giants use ‘centralized' technology, meaning they own everything on their platforms, they hold control, and they can say what users can and cannot post. They are the only (centralized) owners of the products that many people use every day.

Many can recall first signing up for social media and having to click ‘Agree' to the terms and conditions. Well, many of those terms and conditions state that the platform actually owns every photo that users post. Now, those tech giants haven't done anything nefarious with this ownership, so far — that we know of — but the possibility is there nonetheless.

Decentralized Web3 technologies are the tech world's response to this issue.

When it comes to content creation and monetization, users are beholden to the large social media companies' rules. The content creator/influencer industry is growing exponentially, with some commentators even speculating that social media could become a full-fledged college degree in the next few years. Indeed, TealHQ lists the current degrees that one could pursue right now if a social media career is their ultimate goal.

The rise of Web3 tech brings innovations that address content monetization and ownership, introducing new revenue streams of which creators can take advantage.

Content Monetization: The Challenges

The big platforms that many know and love have algorithms that prioritize quantity over quality. Many have heard the video complaining about the algorithm, or seen the post about the top five ways to ‘beat the algorithm' and get more views.

This challenge is faced by many creators, with only the select few making it to the top ranks in terms of subscriber counts. Fair rewards for the hard work they put into their content is all these ‘lower tier' creators want.

Content Monetization: The Solution

AI technology has become a huge player in the game of ‘fair rewards distribution' for creators. One example of this is RepubliK, which uses an AI-enabled experience points (XP) distribution system. By distributing awards to creators based on the quality of their content, RepubliK assesses the merit of its creators and pays out accordingly.

Creator Control: The Challenge

As discussed in the introduction, centralized social media platforms own all content posted on them.

Joonatan Lintala, CEO and Co-Founder of Phaver, which employs creator-owned social graphs, shares, "The challenge with ownership in Web2 is: There is none. Creators build on a rented platform, vassals in internet feudalism. Decentralized protocols turn this around, and step one is giving the user full ownership of their profile and relationships. This, in turn, will force the apps to treat them as real stakeholders, with native monetization and other benefits needed to retain them — without the artificial moat of Web2."

Creator Control: The Solution

For context, ‘native monetization' means that the way to earn money is built right into the platform, as opposed to the current, centralized models that use ad networks, affiliate marketing, and separate e-commerce platforms.

Phaver's decentralized social graphs, including Aave's Lens Protocol and CyberConnect, give creators ownership of everything they do on the platform, allowing said creators to engage with their followers on their own terms and remain unrestricted when it comes to monetization.

Now, where does this monetization come from, if not the third party entities currently in use? This is where blockchain technology seamlessly comes into play, making it possible for creators to have direct connections with their followers.

Web3 Gamification

Most are familiar with that concept of playing video games to earn rewards like coins, gold, and crystals, and games in the Web3 space are making those coins and gold and sparkles convertible into real-world money, using blockchain technology.

Steemit takes this concept and applies it to social media, gamifying the content creation and consumption process to attract and retain users and encourage the production of high-quality, bingable content.

Advancements in technology now allow various digital assets, such as NFTs of celebrities and online photos and videos, to be tokenized and monetized through cryptocurrency. In a time of economic uncertainty, Web3 innovations aim to transform the current system by promoting broader access to resources and opportunities.

Image Credit: Pexels

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