The Internet is probably the most important invention of the 20th century. Its impact on human life and interactions is profound, reshaping how we communicate, work, learn, and entertain ourselves forever.
Unlike many similarly significant inventions, the internet wasn't immediately monetized. The original builders of the internet designed it such that anyone- no matter their background- could access equally at a low cost, without needing approval from anyone. Whatever you created, you owned.
This democratic nature and sense of ownership led to the golden period of creativity that drove the growth of the internet through its early years leading to numerous applications that have transformed our lives and the way we live, work and play.
Everything has however since changed. In the early 2000s, some group of very big companies took control of the internet. This, they were able to accomplish with extremely deep pockets, meaning they were able to build out more apps quickly, hire more engineers and product designers e.t.c. The good thing about this centralization was that billions of people now had access to amazing tech and products, many of which were free to use. However for these same people, it meant they no longer had control over their digital lives. Corporations now had control of the internet.
These big tech corporations usually rely on ads to generate revenue and thus only really cater to what generates the most income for them. They also tax creators greatly, taking unreasonable cuts from revenue which may have otherwise gone to the creators and startups.
This creates a cycle where brands are compelled to pour more money into these platforms, further enriching the tech giants while struggling to maximize their own returns on investment.
Even if these big tech companies and their products deliver some significant value by making these products readily available, their services are plagued with many negative practices.
Today, we have widespread blatant mass user surveillance, where every click, search and social interaction of the user is monitored in order to unethically generate data points which these platforms use to improve their ad services . Deplatforming is another major issue, when platforms expel people, usually without transparent due process, or even more sneakingly, shadowbanning, where people and brands may get silenced and not even know it.
Their ever changing algorithms mean creators and startups even have to always tweak their content to appeal to wider audiences. This leads to diluted authenticity of brands and content creators since they have to adapt or have their business fade out from public view.
In an age where search and social ranking algorithms can change lives, make or break businesses and even influence elections, yet the code and algorithms that power them are controlled and decided by corporations and big companies with usually selfish business interests.
Corporate social networks are structurally designed to restrict new startups, impose high rent on creators, and disenfranchise users. All this means is 1) They stifle innovation ; 2) They tax creativity and 3) Concentrate power in the hands of a few.
Big tech platforms have take rates that consistently exploit the users that bring value to them. Platforms like YouTube, Instagram, Facebook, and TikTok are often perceived as giants that inherently generate value. However, a critical analysis reveals that it is actually the creators and brands utilizing these platforms who drive the actual value and revenue. These platforms have built their empires on the back of user-generated content, yet they continue to exploit the very creators and brands who bring them success.
Startups also play a crucial role in the ecosystem of these platforms. They leverage the vast user bases to reach potential customers through advertisements and sponsored content. For instance, companies spend billions on Facebook ads because the platform offers unparalleled targeting capabilities, thanks to the data generated by users' interactions with content.
In 2022 alone, Facebook generated over $117 billion in ad revenue.
While these platforms offer extensive advertising options, the costs can be prohibitive, especially for small businesses.
Moreover, the algorithms that dictate visibility and engagement often prioritize paid content, forcing brands to continually invest in ads to maintain their reach and relevance.
The exploitation becomes evident when we consider the value exchange. Creators and brands bring the content and the ads that attract users and keep them engaged. This user engagement is what makes these platforms appealing to advertisers, driving up ad revenues. However, the bulk of these revenues go to the platforms, not the content creators or the brands themselves.
Now even with humans increasingly living more of their lives digitally, It has become much harder for Startups, creators, and other groups to grow their internet presences without centralized platforms changing the rules on them and taking away their audience, profits and power.
Blockchain, also called Crypto (because its foundation is cryptography) or Web3 (implying that it is the leading to the third era of the internet) has the ability to transform our digital lives enabling us to take control and return the internet to its founding ideals.
The significance of Blockchains lies in the unique way in which they and the networks built upon them are controlled.
In traditional networks, the hardware controls the software. This ultimately means a person or group of persons is in charge of both the hardware and the software. These people can create rules and change them however they please.
With blockchains however, the software is in charge. i.e. softwares controls the hardware.
This is of great interest because for the first time ever, we now have computers that can make strong, software enforced commitments to users. A key commitment that blockchains make involves digital ownership, which puts economic and governance power into the hands of users. This ability of blockchains to make strong commitments about how they will behave in the future allows for new types of networks to be built.
These new networks and applications being developed on the blockchain inherit its unique features; DECENTRALIZATION, OWNERSHIP AND INTEROPERABILITY.
The combined power of decentralization, ownership, and interoperability of Web3 networks results in a digital economy that is far more equitable and user-centric. Instead of being passive participants whose data and content are monetized by tech giants, users and creators become active stakeholders with control over their digital presence. This empowerment not only enhances individual autonomy but also promotes a fairer distribution of wealth generated by digital activities.
Blockchains and web3 networks can connect people through social networks where the users are empowered over corporate interests. Marketplaces and payment networks that facilitate commerce can also be built on these networks, ensuring better security, and all with much lower take rates.
New types of games and gaming networks where users can truly own their digital assets can also now be built. Web3 enables new forms of monetizable media, interoperable and immersive digital experiences (Metaverses) and artificial intelligence products that support and compensate- rather than disenfranchise creators.
Web3 has the ability to reshape our online experiences and empower people to take control of their digital lives like never before. Blockchain networks provide a credible tool to counterbalance the threat of internet consolidation in the hands of big tech. Much more important now, with the continuing rise of Artificial Intelligence. AI holds great promise but big well funded tech companies with access to large pools of data can easily take control of it. Believe me, when I say nobody wants to live in a world where AI is consolidated in the hands of Big tech. Without the decentralization that web3 and blockchain networks provide, we can as well kiss goodbye to a future where anyone owns anything truly.
It provides a second chance for us to build a new dynamic internet where innovation is not stifled, creativity is promoted instead of heavily taxed, and where economic power is decentralized and out of the hands of a few.
By empowering users and creators, Web3 challenges the monopolistic control of big tech companies and promotes a more transparent, innovative, and equitable digital landscape.
This new landscape holds the promise of a digital world where individuals are no longer mere consumers but active participants and beneficiaries of the value they create.
