The web2 revolutionized the way content was produced, but struggled to find a way to reward participants. Meta, Twitter, Google, Reddit, Medium* have immense leverage, but that leverage was earned by capturing the lionshare of value created by individual users.
*These five players captured 71% share of the global advertising market in 2020.
« if the service is free, you're the product…» — Andrew Lewis
Content creators on these platforms gain little to no revenue while simultaneously doing all the work. Posting of viral, attention grabbing or even false content is encouraged in order to feed the algorithm.
These platforms amass billions of dollars in wealth creation but pass virtually nothing onto their users.
They decide what content is acceptable and what’s not. They also decide what content goes to what audience.
They also serve as a defacto gatekeeper, arbitrarily preventing anybody from being part of the network.
Meta made $118B USD in revenue and 40B in profit in 2021. They don’t produce content, their users do. As of January 2022, They have 2.9B monthly active users (MAU). Companies pay top dollar to Meta to reach “their” audience.
Meta’s products are free. They monetize users’ data. They don’t pay their contributors. That business model is upside down. The people producing content and contribute are being exploited (or even censored) by middleman who manage the platform.
Web3 natively incorporates tech that enabled decentralized and autonomous organizations to emerge. This is ultimately about giving control back to creators, where it belongs, and finding new ways to reward them. Digital advertising is not the enemy, but it does need to be reconstructed around a new distribution paradigm.