Everybody is talking about Web 3.0, but few can explain why it is so important for the digital economy of the future. Let’s dig into this matter using the content creator market as a case study.
Currently, most content creators are trapped in Web 2.0 platforms that store their data on their own central servers. Consequently, these platforms essentially control this content and can arbitrarily decide whether to remove or demonetize it or block its creator completely.
Furthermore, their search algorithms decide which content will be proposed to potential viewers, which means they can shadow ban any material they dislike. And if one of these platforms ceases to exist, all of the data it stores will disappear along with it.
So, it is clear that the balance of power between currently existing content platforms and creators is unequal. Let’s have a look at how things will be organized differently with Web 3.0 platforms.
Welcome to Web 3.0
As opposed to Web 2.0, where data is stored on a particular server or computer and accessed via a web address, or URL, that directs users to it, Web 3.0 will operate over a P2P (peer-to-peer) network, where data is distributed over a vast number of computers, or nodes, with the help of blockchain technology. This decentralization of data means that no one party can dictate what can or cannot be done with it. Only the owner of the data has control over it. Thus, Web 3.0 returns control of content back to its owners.
But how would this work in actual practice? Let’s take video streaming platforms as an example.
Today, YouTube, a Web 2.0 platform, has a virtual monopoly on video streaming. If a creator of video content wants to expose their work to a large audience, they have little choice but to post it on Alphabet’s service. But, as it is well known, YouTube can block or demonetize any content it deems undesirable or ban users altogether. In this case, the creator has little recourse. Even if they write the platform to complain, they will likely just receive a vague message about “violating community guidelines,” if they receive any answer at all. Moreover, with YouTube, content creators have no say as to what portion of profits they will receive from advertising views. All terms are dictated by the platform, and users can just take them or leave them.
Now, let’s look at a Web 3.0 video streaming platform and compare.
At present, the Web 3.0-based project for media streaming in the most advanced stage of development is called FavorTube. It offers real-time, consumer-grade HD video playback and full lifecycle services for content creation, connecting content creators, consumers, and fans in one decentralized platform that is transparent, fair, and anti-censorship.
FavorTube uses smart contracts to automatically distribute revenue from consumer views of ads among creators, the platform, and viewers. It makes it possible to issue multiple forms of NFTs (permanent membership, crowdfunding) with one click, with revenue from channels or content automatically distributed to NTF holders. The rights and interests of commercial videos are protected via authorization on the P2P network.
FavorTube has developed its own protocol stack, dubbed FavorX, as an underlayer for decentralized storage and content distribution. While some projects have been working to implement fully decentralized media-streaming, FavorTube is the first platform to offer completely decentralized file storage, content distribution, data retrieval, and purchase transactions. Its out-of-the-box desktop and mobile applications are directly connected to the blockchain on mobile terminals via P2P networks whose performance increases as the scale of the network expands. FavorTube is also the first fully decentralized application project to support the use of mobile terminals directly connected without gateways on an anti-censorship and globally accessible streaming platform.
Thus, FavorTube has harnessed the decentralized financial characteristics of blockchain to create a new business model for content creation and revenue distribution that fundamentally reallocates power between content creators, consumers, and content display platforms. Consequently, content is once again owned by its creators, who can now profit from them freely and without exploitation or fear of censorship.
It is obvious that content creators will much prefer this arrangement and be flocking to Web 3.0-based platforms as this new iteration of the internet evolves. As people become more aware of the benefits that decentralization provides, there is little doubt that more and more Web 3.0 platforms will appear to meet the growing demand.