Web 3.0: Reclaiming Attention in the Digital Economy

The Shortcomings of Web 2.0 and the Rise of Web 3.0

Recent events have highlighted significant issues within Web 2.0, including imbalances in how creators are compensated and inadequate security measures.

Centralized control and dissatisfaction within online communities are also becoming increasingly apparent.

Recent Events Exposing Web 2.0's Weaknesses

Frances Haugen, a former product manager at Facebook, recently presented testimony to Congress alleging that the company prioritizes financial gain over user safety.

Shortly after this, Facebook experienced a global outage of its centralized services, an event so severe that the company lost access to its own servers.

Furthermore, an anonymous hacker exposed a substantial amount of internal data from Twitch, a streaming platform owned by Amazon.

This data release included source code and creator payout details, accompanied by a call for improvements to address the platform’s perceived “disgusting toxic cesspool” of a community.

The Failure of the Centralized Model

Despite the considerable growth, reach, and profitability of these platforms, it’s clear that the established approach has fundamental flaws.

The centralized nature of Web 2.0, characterized by network effects, large scale, and a “winner-takes-all” economic model, is demonstrably failing to serve the needs of society effectively.

A Call for Change and the Web 3.0 Solution

A shift in direction is now necessary.

As Web 3.0 entrepreneurs focused on building an open infrastructure, we have a responsibility to address the core deficiencies of the previous technological era and create a more collaborative, creative, and user-focused internet.

The following outlines how Web 3.0 aims to rectify some of the most prominent problems within our current digital economy.

Security Vulnerabilities and Data Management Concerns

Recent incidents, including background alterations featuring images of Amazon founder Jeff Bezos, highlight ongoing security challenges at Twitch. Reports from former staff members suggest that inadequate security protocols were widespread within the streaming platform.

It is now widely understood that sharing data with centralized organizations carries inherent risks. Numerous data breaches affecting banks, retail companies, and social media platforms demonstrate that complete online privacy is increasingly difficult to maintain.

Web 3.0, leveraging cryptography and frequently utilizing open-source code, allows for community code review. This collaborative approach enhances security and positions transparency as a key benefit. The advantages extend beyond privacy, directly safeguarding user value.

Security researcher @samczsun has proactively identified potential vulnerabilities within various protocols, such as 0x, Livepeer, Kyber, Nexus Mutual, Aragon, and Curve, preventing substantial financial losses.

The implementation of interoperable standards allows ERC-721 NFTs to be traded and displayed across numerous applications. Similarly, ERC-20 tokens gain access to a diverse range of competitive financial products.

Increased User Control and Platform Accountability

This enhanced user agency raises the stakes for platforms. A security breach could potentially lead to a significant user migration, as individuals seek more secure alternatives.

Data controls are paramount in the current digital landscape. The ability for users to manage and protect their own information is becoming increasingly crucial.

• Centralized systems are prone to single points of failure.
• Open-source Web 3.0 technologies promote greater resilience.
• Transparency fosters trust and accountability.

Ultimately, a shift towards decentralized systems and robust data controls is essential for protecting user interests and fostering a more secure online environment.

Addressing Toxicity and Platform Responsibility

Recent events involving unauthorized access to Twitch highlighted a critical issue: the increasing prevalence of toxicity on streaming platforms. Large technology corporations have found it challenging to adequately address the scale of this problem. However, within the current Web 2.0 framework, content creators lack practical alternatives.

While options like YouTube or Facebook Live exist, transitioning to these platforms often simply exchanges one problematic, attention-based environment for another. This situation underscores the need for change.

Despite these challenges, creators currently possess unprecedented influence. Their audiences demonstrate a willingness to follow them across platforms, granting creators significant bargaining power. To effectively combat toxicity, creators require Web 3.0 technologies.

These tools will empower them to operate outside of restrictive platforms and establish direct connections with their communities, ultimately controlling their own online presence. This shift is essential for fostering a healthier online environment.

The Power of Web 3.0

Web 3.0 fundamentally alters the relationship between users and platforms, placing data control firmly in the hands of the users themselves. Through interoperability and data management solutions, such as those offered by Spruce, Web 3.0 platforms facilitate easier platform migration.

Users can more readily express their preferences by “voting with their feet” and choosing platforms that align with their values. This increased mobility fosters competition and accountability.

Furthermore, advancements from companies like Conflux and Moralis are simplifying the process of scaling applications across various blockchains and standards. This allows for quicker responses to emerging opportunities.

For example, concerns regarding potential insider trading on OpenSea, an NFT marketplace, prompted the emergence of alternative platforms like Artion. These new entrants aimed to address perceived shortcomings within the NFT space.

Such rapid adaptation to market dynamics is rarely observed in the traditional Web 2.0 landscape, which often prioritizes scale and restricts access to hinder competition.

Community-Driven Moderation

The benefits of Web 3.0 extend beyond direct user-creator relationships. These platforms are designed to be user-owned and community-governed, aligning incentives for self-moderation. In the context of video streaming, communities generally have no desire to tolerate disruptive behaviors like hate raids.

In the Web 2.0 model, users are reliant on platform intervention. Conversely, Web 3.0 empowers users to take action through integrated governance and moderation systems.

Consider the Mirror blogging platform, where community members vote on content contributors each week. Similarly, projects listed on the Web 3.0 index have a say in the inclusion or removal of other projects, promoting sustainable ecosystem development.

Addressing Inequality and Promoting Transparency

The revelations from the Facebook whistleblower exposed a concerning disparity in justice application. The platform appeared to apply different standards to celebrities versus ordinary users.

While a typical account might face penalties for violating terms of service, high-profile accounts often enjoyed leniency. Web 3.0 offers a solution to this inequity.

Through the inherent transparency and censorship resistance of blockchain technology, Web 3.0 promotes fairness and accountability. Decisions are made publicly using tools like Snapshot, driven by the collective community.

Governance processes occur on-chain, ensuring visibility for all participants. This eliminates the possibility of opaque backroom dealings or biased enforcement (unless explicitly approved by the community). Participants retain the freedom to disengage if they disagree with the platform’s direction or level of openness.

Disparities in Creator Compensation

Recent data breaches, such as the Twitch leak, have highlighted significant economic imbalances between highly successful creators and those who are more typical users of the platform. This situation creates a system where the platform’s interests are primarily aligned with a small percentage of its most prominent content producers.

Consequently, platforms tend to prioritize and amplify the visibility of these top-tier influencers, as their success directly benefits the platform itself.

The emergence of Web 3.0 offers a potential solution to these misaligned incentives by fostering greater democratization and breaking down the barriers between creators and their audiences.

Web 3.0 introduces new monetization strategies for creators, including NFTs, digital currencies, tokens, and crowdfunding, which aim to create a more equitable landscape.

For instance, artists utilizing platforms like glass.xyz have demonstrated the potential to generate greater revenue through NFTs combined with interactive live streams, compared to traditional Web 2.0 monetization methods.

User Ownership and Incentives

A key aspect of Web 3.0 is the ability for users to own portions of the platforms they utilize, often facilitated through the use of tokens.

This ownership structure incentivizes users to actively contribute to the platform’s success, including providing essential services like content moderation.

Furthermore, fans can acquire fan tokens, demonstrating their support for creators and establishing a mutually beneficial cycle that strengthens fan communities centered around shared interests.

Platforms such as Rally, Socios (operating on Chiliz), and Roll empower creators to directly monetize their influence, expertise, and artistic output, bypassing traditional intermediaries.

This direct alignment of incentives is crucial, as the creator effectively becomes the platform, allowing them to establish community guidelines and maintain a thriving environment without external interference.

Benefits of Direct Creator Control

• Creators can define the rules of engagement.
• They can proactively address community needs.
• A healthy community is fostered without third-party constraints.

Ultimately, Web 3.0 aims to reshape creator economics by prioritizing a more balanced and mutually beneficial relationship between creators, platforms, and their audiences.

The Societal Benefits of an Enhanced Internet

A significant portion of our modern social and economic systems now depend on internet infrastructure managed by a limited number of private entities, a situation that presents inherent risks. This vulnerability is exacerbated when these companies demonstrate a lack of responsibility, making pledges of improvement that often remain unfulfilled as public scrutiny diminishes.

However, the goal isn't necessarily to dismantle Web 2.0 entirely. Rather, society requires a substantial internet upgrade. While Web 2.0 tools offer considerable benefits, they also come with drawbacks. The underlying mechanisms of Web 2.0 have fostered large, unaccountable tech monopolies with limited adaptability.

Web 3.0 represents an evolution of the internet, aiming to retain the positive aspects of its predecessor while mitigating its shortcomings. This is achieved by aligning the economic interests and motivations of all users, thereby circumventing the adverse consequences associated with advertising-driven business models.

Decentralization and User Empowerment

Decentralized services possess a distinct advantage over centralized authorities when considering cultural dynamics and control. Web 3.0 introduces a novel approach to community building, granting users data portability and interoperability.

This reorients incentives to foster self-regulating communities. It fundamentally shifts power dynamics within the digital landscape.

As Frances Haugen correctly points out, the focus should not be solely on breaking up large companies. Instead, the emphasis must be placed on transparency and governance.

Ultimately, we are all entitled to a better online experience. Services and platforms that prioritize these crucial elements – transparency and community governance – are poised to succeed in the forthcoming digital economic era.

• Web 2.0: Current internet model reliant on centralized platforms.
• Web 3.0: An evolved internet focused on decentralization and user empowerment.
• Data Portability: The ability for users to easily transfer their data between services.
• Interoperability: The capacity of different systems to work together seamlessly.