By Sakina Arsiwala
Web3 is dubbed the “read-write-own” version of the internet, ushering in a new era of the internet. Web3 has come to represent a more open and fair approach for people to participate in creating the platforms of the future that will determine how we interact with one another. One of the most significant impacts of this new form of the internet is on social media and its users.
For internet users, social media is an essential component of their regular online media intake. In 2022, there are currently 4.55 billion active social media users globally, a 9.9% increase from the previous year. That indicates that throughout the past year, 400 million new users have opened at least one social network account. [i]
With this growth, it is crucial for internet and social media platforms to elevate consumers’ experiences with something new and more advanced given how much people enjoy social media. Web3 will help provide the necessary innovation.
Offerings of Web3
In the Web 2.0 era, users and content creators completely rely on centralized platforms, their algorithms, and advertising models. Everyone is asked to follow self-made rules and regulations. Upon any violation, the platform owners may censor content and even block an account.
With its decentralisation philosophy and blockchain technology, Web3 offers “ownership” to users. It encourages decentralised applications (DApps), which let consumers connect to protocols and applications directly without needing intermediaries such as large technology companies. Ownership is going to provide much-needed stimulation to the creator-driven economy by enabling creators to create and own content for direct monetization.
Creators can now monetise their content and sell it across marketplaces with blockchain-powered NFTs. For their followers, they can also offer a customised subscription plan and add-on services. Community-driven, ad-free and self-monetised content allows creators to drive the market.
Simultaneously, Web3 addresses worries about identity theft and privacy invasion, which have been top concerns in the Web 2.0 era where organisations have exploited free-flowing data for their benefit. With Web3, users can now become stakeholders in a network and take part in the governance and management of a protocol. Participants are given tokens or coins that can be exchanged for NFTs as a sign of ownership.
Most importantly, Web3 offers a return to users for the time they spend on social media, creating a win-win situation for all. You can imagine the loss of those who devote an enormous amount of time to social media without earning any money. Web3 has introduced new mechanisms for rewards to content creators and contributors. With cryptocurrency-powered micropayments, platforms can create dynamic economies, allowing users to transact tokens.
Impact on Social Media
In Web3, social media platforms will be able to improve their capabilities and offer users a more engaging experience. With its sophisticated functionality, Web3 will empower social media platforms to offer unique returns to users and attract more people to explore opportunities. This will play a vital role in the growth of Web3 social networks because more users lead to more revenues, ensuring business sustainability.
Web3 is fundamentally altering the structure of social media and how the world communicates, conducts business, and socialises online. This will support brands in developing appropriate marketing strategies for social media that can successfully reach consumers on the decentralised internet.
The author is co-founder, Taki
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