Ben Rubin on Web3 Social Media & Getting Paid

The Shifting Landscape of Social Media

For ten years, major social media corporations have largely functioned as publishers, exchanging tools for content creation with a constant stream of advertisements. However, a significant shift is now underway, manifesting in multiple ways.

Content creators – encompassing both prominent influencers and everyday online posters – are gradually reclaiming authority previously held by social media giants. Simultaneously, decentralization is gaining momentum in sectors like finance and art, challenging established norms and suggesting a future shaped by alternative currencies and digital assets.

Insights from TechCrunch Disrupt 2021

During TechCrunch Disrupt 2021, Ben Rubin, the founder of Houseparty and previously Meerkat, explored the convergence of these trends. Rubin’s earlier app, Meerkat, gained prominence at SXSW 2015 before evolving into the video chat application Houseparty, which was later acquired by Epic Games in 2019.

Despite this acquisition, Rubin’s ability to identify emerging social trends remains sharp.

Understanding Decentralization and Web3

Decentralization is currently a prominent topic of discussion. As with any emerging technology, it’s accompanied by specialized terminology. Within the DeFi (decentralized finance) and NFT (non-fungible token) communities, Web3 is the prevailing term used to describe the transformative potential of decentralized networks for the internet’s future.

While definitions of Web3 vary, decentralization is its core principle. Rubin offered his interpretation during his Disrupt interview: “In Web2, central entities own the network. In Web3, the network itself has the potential to own the network.”

Ownership as a Defining Feature

Rubin views Web3 as fundamentally about ownership. Unlike Web2, where a limited number of powerful companies leased space on centralized platforms, Web3 aims to reverse the “winner-take-all” dynamic.

“Ownership on the internet is similar to buying skins or avatars in gaming,” Rubin explained. “Our identities are increasingly tied to what we possess. This shapes our self-perception.”

He believes Web3 will shift the focus from simply establishing profiles on social platforms to representing ourselves through the digital items we choose to acquire.

The Metaverse and the Future of the Internet

Companies like Facebook, Roblox, and Epic Games are developing their visions for the metaverse – an interconnected web of virtual worlds facilitating transactions for virtual goods.

Despite the involvement of large corporations, Rubin remains optimistic that the next iteration of the internet, built on blockchain technology initially designed for payments, can redistribute power and capital.

“We’re transitioning from a highly centralized era,” Rubin noted. “A few companies control our attention, supply chains, and information. Simultaneously, there’s a growing desire to reject this control, and emerging technologies may facilitate that shift.”

Adapting to a Decentralized World

While major tech companies aren’t likely to disappear, they will need to adapt to stay relevant in a decentralized environment. This is already evident in the emergence of creator funds and new tools designed to help users monetize their content on existing platforms.

Previously, it was uncommon for large platforms to actively support user earnings, prioritizing targeted advertising. However, these companies are recognizing that retaining content creators requires providing them with financial incentives, or risk losing them to alternative platforms.

The Evolution of Web3

Rubin anticipates that decentralization will transform social networks into “something completely different,” a concept that remains difficult to fully envision.

However, Web3 still faces significant challenges before achieving widespread adoption. It must navigate the typical stages of technological development.

“Web3 and crypto typically follow three cycles: initial excitement from insiders, a price increase, and a subsequent pullback. This pattern repeats with industry involvement, followed by another rise and fall, before finally attracting mainstream consumers.”

Current Stage of Development

Rubin places NFTs in the early insider phase, while DeFi and crypto are further along, entering the industry phase but not yet reaching mainstream usage.

“The process is often chaotic, but it’s crucial for the ecosystem of ideas,” Rubin stated. “Even ideas that don’t fully deliver on their promises contribute to progress.”