Chris Dixon has said “a new era of Internet companies that will be owned and operated by communities instead of owned and operated by corporations” in his latest interview.
Although @cdixon explained "Why Web3 matters" (1) on 23rd September of 2021, some stuff didn't get mentioned. In this interview, Chris Dixon hit the majority of Web3's criticisms.
- Economic Model
In case you're curious about the technical details of Web3, take a look at "The Flaws in the New World of Web3", outlined by @chriscantino in an easy-to-understand manner. (2)
It's common to hear about Web3 definitions such as Bitcoin, NFT, Metaverse... The truth is that Web3 has much more to offer. If you ask me, Web3 is the technology that lets you manage your own data - which is different from Facebook, Twitter, and other social media platforms in Web2 technologies.
During this period, Web3 is talked about in many different ways. In truth, all it was superficial. The structure's real strength is underappreciated by many people/companies... Web3 disrupts the digital economy by utilizing blockchain technology and gives users control over their data.
Let's dive into what Chris Dixon said;
Basically, Web3 gives you a place to build your empire.
Let me share one example to explain what democracy is in Web3: What will happen if Twitter disappears suddenly? Would you still be there? - No way, you disappear and you no longer have access to your followers, data, etc. In this way, Twitter controls all of your data, even if you are an initial user. This is called "platform-centric". system. (Web2)
A centered system means Web2 can change algorithms whenever it wants. Now, Web2 sounds like an old friend you don't talk to too much. When it comes to Web3, you're in control of your own data thanks to Digital Wallet. Platforms can't make you disappear unless you delete your own account. You're in the decentralized world now!
In Web3, decentralization means democracy. You have the ability to create, control, and own.
With NFT’s users or creators can own a piece of these digital services. NFT’s are created on Layer 1’s like Ethereum, Solana, etc.
Let’s think about Ethereum;
Ethereum lets you own tokens and create them. The tokens you own are controlled by your secret password. You're the only controller.
Such a powerful idea because you can either be a member of the community or let the community members build the network. A significant value of community means that community members can contribute to the control of projects, ideas, etc.
The form of government where everyone gets a voice. In other words, this is a new thing that didn't exist before on the Internet.
As we mentioned above, NFT is created on Ethereum, right? What is Ethereum, then? Dixon said that Ethereum is a computing platform where people can build applications. In a sense, it is a "community-owned computer". Ethereum puts the community first, the system is run by the community.
The current economic model has just been disrupted by Web3. The norm of Web3 is that ownership belongs to the community and to people who build their own systems. There's a new thing on the way, it's almost here. By contributing to the community, creator economy value is becoming more important. Web3 allows everyone to become a creator by mining NFT’s.
When we think of XYZ, we imagine musicians or people who create music being on the platform as creators. They basically do NFT drops every day without making money - for now… They put their own albums, songs, and artwork on there. There are no other media to speak of or to upload. This is your marketplace. You own it, you create it, you sell it, so you are the only one who controls economic status in a decentralized economy.
Let me give you the latest example of the NFT music economy. Kanye West announced a new single, which was not available on Spotify, Apple Music, and other Web2 platforms earlier this year.
The Digital Economy disrupted by Web3, Kanye West said that "Donda 2 will only be available on my own platform, the Stem Player," the 22-time Grammy winner wrote on Instagram. "Not on Apple, Amazon, Spotify, or YouTube.” (3) Only 12% of the money made by the industry goes to artists today. Music needs to be freed from this oppressive system. It's time to take control and make our own rules. In August last year, Ye revealed his Stem Player for the first time. In Yeezy Tech's handheld circular device, users can break down the star's music (or their own) into stems.
Thus, my friends, Creator Economy is for the community and everyone can participate. Through Web3, people can build their own economy democratically.
Hope you enjoyed reading it, please let me know what you think, and we'll talk about it in the next blog.