Can decentralisation save the web? Part two - the creator economy

If "Karma Police" were to serve as a metaphor for the current state of the digital world, you could argue we're desperately in need of some cosmic justice. I say this, channeling my inner classic Gen-X music nerd, to spotlight the seismic shifts on the horizon for creators everywhere, courtesy of Web3. And yes, while it might seem a stretch, there’s a tune to be played here that harmonises with the promise of a more equitable digital ecosystem.

Summary: Just give me the facts!

• Web3 is opening up an entire new way of connecting creators and their fans
• Tokenisation, NFTs and decentralised platforms offer artists the chance to earn revenue without intermediaries
• Social media is set for major disruption based off new decentralised protocols that allow consumers to be in control of their data & experience

Enter stage left, Web3, with its blockchain ensemble and a symphony of decentralised applications (aka 'dapps'), which are hoping to reroute the power dynamics of the Internet back to its rightful owners — the users and creators. For decades, we've been caught within a system that prioritises the house's win, where big tech companies hold the keys to the kingdom, and the creators are left to collect the crumbs. All you need to do is see these case studies of a few 'normal' artists on the Spotify platform to see how the odds are stacked against them.

However, this narrative is on the cusp of a radical transformation. Imagine a world where creators can directly monetise their work without intermediaries taking a lion's share of the revenue?

This isn't just a hopeful riff; it's becoming reality thanks to blockchain technology and the principles of Web3. Tokens, NFTs, and decentralised platforms are shaping up as new instruments in a creator's toolbox, enabling more authentic connections with audiences and, crucially, paths to independence and financial sustainability.

The Music industry is ripe for disruption

For instance, take the music industry, an arena I'm particularly fond of. It's been riddled with tales of artists getting a raw deal from record labels and streaming platforms. There's more than 11 million artists on Spotify, but despite the fact that 220 million of us pay for the premium service, a tiny fraction of those artists earn a living wage from their art.

With Web3, musicians can tokenise their work, offer unique, collectible digital assets to fans, and create immersive, interactive experiences that go beyond the auditory. The potential here isn't just in earning a fairer slice of the pie but in rewriting the very contract between artist and audience.

Companies such as Royal offer fans the chance to buy NFTs of their artists music that give them a whole host of benefits, from merch, exclusive concerts and even royalties from the total revenue earnt by the artist. For more in the music space check out Sound, Catalog, or Audius (the Spotify of Web3).

And it's not just the musically inclined who stand to gain. Writers, visual artists, filmmakers —anyone with a creative spark and something to share—can find a home in the Web3 creator economy. The platforms are varied, from NFT marketplaces to decentralised social networks (although these are more 'fediverse' powered open protocols than web3), each offering a canvas for expression that doubles as a direct line to those who value it most.

A better social media

The rise of decentralised social media isn't actually powered by blockchain or web3 but it remains an excellent example of the decentralised web through a set of new protocols – commonly called the Fediverse – that will return data privacy & control to the users that drive these platforms instead of the companies who control it.

Twitter founder Jack Dorsey has been quietly building Bluesky; an alternative to Twitter X that uses an entirely new protocol that is open, transparent and transferrable.

The decentralised element allows developers to build their own apps, projects and services to the protocol. If you applied this theory to existing tech it could look like this explanation during an interview with Bluesky CEO Jay Graber from a recent Hard Fork podcast:

So theoretically, it would be possible to have kind of an Instagram-like app where the Stories feature was built and run by Snapchat and the shopping feature was built and run by Amazon and the For You page or the Explore page was sort of run by some other startup – Kevin Roose

Most importantly is the opportunity for users of the platform, who will actually own their accounts and their experience. You can limit exposure to your data, eliminate misinformation or hate speech. And most importantly – once the ecosystem grows – move your account to an entirely different client.

But Bluesky isn't the first to create this idea, with a decades-old protocol called ActivityPub powering the other Twitter X competitor, Mastadon, while Threads (Meta's Twitter ripoff inspired social media platform) will also integrate with ActivityPub in the near future. True web3 powered social media is also not far behind with the Farcaster protocol powering Warpcast as well.

Where to next?

Yet, as with any burgeoning movement, there are hurdles. Regulation, scalability, and the ever-present spectre of speculative bubbles loom large. Plus, the learning curve is steep; diving into Web3 is akin to learning a new language, one spoken in the dialects of smart contracts and cryptographic proofs. And that's just for the end user – remember this is all still nascent tech.

But let's not forget, every significant cultural shift began as a mixtape of bold ideas and uncharted territory. The key for creators is to stay curious, be willing to experiment, and always — always — keep the audience's best interests at the heart of what they do. After all, in this new digital concert, the fans are more than just listeners; they're co-creators of the experience.

As we look to the horizon, it's clear that the creator economy within Web3 isn't just a passing trend. It's a renaissance, a rebirth of the Internet's original promise: a space where everyone has the opportunity to create, share, and thrive. And perhaps, in this symphony of decentralised creativity, we'll find the justice "Karma Police" longed for—a fair, transparent, and equitable digital world for all.

Till next time,

– Val