The Creator Economy flourished in the last few years, especially during the pandemic. India witnessed a surge in the tally of creators ideating an array of content across various social media platforms. To put it out loud, creating content is now a full-time job and has been contributing significantly to the economies of countries. Web 2.0 has paved the way for creators to monetize their creativity and hard work. However, the social media giants still dominate the financial gains of the creators. Therefore a Decentralised Creator Economy i.e. Web 3.0, beholds a better future for the creators by giving them more power to control and channel their earnings.
Let’s talk in-depth!
What is Web 2.0?
How do Creators earn from Web 2.0 platforms?
It is undeniable that creators grind themselves into creating relevant content and building a loyal fan base. The emergence of Web 2.0 social media companies provided them with a recognizable platform to bring forth their work and connect to a mass audience. Creators mostly earn from brand endorsements, subscriptions, advertisements, and sponsorships. Some creators monetise their audience by launching workshops and selling their online courses on platforms like TagMango.
The actual problem is that most Web 2.0 platforms like YouTube and Instagram take a heavy percentage of the advertisements revenue from the creators. Instagram and YouTube take 55% and 45% of the creator’s ad revenues respectively. Only a handful of creators in India earn a lucrative amount from these platforms, the majority of them do not. Web 3.0 is emerging as the future for the creator economy because it will eliminate the intermediary factors affecting the financial gains of the creators.
What is Web 3.0?
Web 3.0 is a term coined by Ethereum co-founder Gavin Wood in the year 2014. It will lay the foundation of a decentralised creator economy. Web 3.0 will be built on decentralised data networks and artificial intelligence. It will be a breakthrough in creating open, trustless, and permissionless networks.
- ‘Open’ – They will be built by an open-source software and created by accessible developers to be performed in the full view of the world.
- ‘Trustless’– It will allow its users to interact publicly and privately without the interference of a middleman
- ‘Permissionless’– It will allow the participation of both users and suppliers without the authorisation of a governing body.
Decentralised Creator Economy to create a balanced dynamic-
With the advent of decentralised platforms, creators will directly connect with their audience to exchange their content for value accordingly. A decentralised creator economy will no longer be about the platform but the paradigm will shift entirely towards the creators and their community.
A decentralised creator economy will be built on blockchain technology and will operate on NFTs, cryptocurrencies, and decentralised finance (Defi). These features of Web3.0 will help the creators maintain full rights over their intellectual property. Fans can freely and directly reward creators for work they enjoy, resulting in an ecosystem that will effectively eliminate the intermediary. Participants in a decentralised creator economy created on the blockchain technology would have direct, democratic power over the service itself, including its rules and procedures, future growth, regulation levels, etc.
It can usher in the widespread interactive culture that initial promoters of the online world envisioned and that digital conglomerates have consistently thwarted.
Decentralised Social Media-
Unlike centralised networks like Facebook, Twitter, and others, activity on these platforms are irreversibly recorded on a decentralised system that no central authority can influence or supervise. One of the controversial concerns with centralised social networks is the illicit sale of user data. Decentralized social media systems prohibit this. Furthermore, blockchain technology uses encryption to increase user data privacy and security. In 2019, Twitter became the first social media platform to announce its project on decentralising social media, Bluesky.
How is TagMango Decentralising the Creator Economy?
At TagMango we aim to create financial freedom for the creators. TagMango is a cohort-based course and workshop platform that is effectively allowing creators with any field of expertise to utilize their skills and monetise it. A decentralising creator economy promises more power in the hands of a creator in terms of owning their property and earning what they deserve, and we at TagMango are working towards achieving the same goal through our platform. So, if you are a creator who is looking for a platform to connect with your audience to share your knowledge and monetise your content, then do sign up!