Privacy risks, account banning, and unfair distribution of revenue – these are the main problems currently facing creators regardless of content, be it text, audio files, images, or video clips.
The reason for this is simple. Today, all content creators are locked into a centralized Web 2.0 business model.
Whether you post pictures on Instagram, videos on YouTube, or commentary on Facebook, the formula is the same.
You post your content on the social network and, if you amass enough followers, these corporate giants may see fit to give you some of the advertising revenue they receive from views of your work.
Content owners have little choice but to wait and hope that these faceless giants will show them a little generosity, and even if this happens, creators have no say as to how much they will receive or for how long.
The platform can demonetize content (if they monetize it all) at any time and restrict or ban it if they dislike it. In fact, they can ban a user’s account completely at their own whim. Have you ever noticed that Facebook often hides a lot of the content from pages that you follow and YouTube often suggests certain videos that are either of no interest to you at all, or that reflect a specific point of view?
This is due to their algorithms which are classified as a black box for users. All of these potential restrictions will naturally affect the number of people that see a creator’s content and, consequently, the amount of revenue earned from it.
But what is a content creator to do who doesn’t want to bow to the hegemony of Big Tech? This fast-evolving market niche obviously needs a new approach and new rules that distribute power more fairly.
Enter Web 3.0
It is clear that the main problem with the current system is the centralized nature of data storage. By posting content on Big Tech’s central servers, creators have essentially handed ownership and control of their work over to these virtual monopolies.
A decentralized approach to data storage can solve this problem because the content isn’t stored on just one server owned by a single entity but on a vast number of computers serving as nodes on a P2P (peer-to-peer) network. This is the central idea behind Web 3.0.
But how would this work in practice? Let’s take a Web 3.0 platform called FavorTube as an example.
FavorTube is a video content creation and viewing platform empowered by Web 3.0. It is the first such project to offer consumer-grade HD video playback streaming over a decentralized network directly connected to both desktop computers and mobile devices through its own out-of-the-box applications.
Its ability to prevent censorship and implement monetary transactions without an intermediary makes it possible to place a large number of pay-per-view videos in its decentralized system, whose performance increases as the scale of the network expands.
On the business side, the key to FavorTube is to provide content creators with revenue streams and financial products that they cannot get on Web 2.0 platforms, thus making it possible for them to earn far more.
It makes it possible to sell and buy video content and share revenue without a third party. In addition, the platform utilizes NFT technology and concepts that allow content creators to crowdfund from fans and share revenue with them.
FavorTube provides full lifecycle services, from early fundraising to revenue transfer through blockchain networks. Storing data on a decentralized network ensures that its ownership remains with the users.
Unlike Web 2.0 platforms, which basically own and sell the creators’ content to advertisers and then pay them what amounts to a small commission, creators receive the lion’s share of the revenue with FavorTube.
And this all happens automatically via smart contracts that allocate rights and revenue between content creators and the platform according to a predetermined formula. This turns the current Web 2.0 business model on its head.
As a Web 3.0 platform, FavorTube has the characteristics of a blockchain project, so its community is its most fundamental resource. This consists not only of creators, but consumers and supporters as well, and all participants have a chance to share in the generated revenue.
FavorTube’s innovative use of NFT’s decentralized financial functions allows content creators to crowdfund and fans to share in the revenue from their creations, thus creating a higher-dimensional community-based business model for content creation.
The relationship between FavorTube and content creators is an equal partnership, with FavorTube providing a platform for publicity and promotion, and creators providing the content.
The two are connected through smart contracts, which automatically distribute subscription fees when consumers subscribe. FavorTube provides a foundry, sales, and trading platform for NFTs and receives a commission on sales and transactions.
Since creators are FavorTube’s main asset, they receive the largest percentage of revenue from operations.
This comes from two sources:
- Consumer Subscriptions: The fee paid by consumers when they subscribe to a creator’s channel is automatically allocated to the creators after FavorTube’s share is removed via a smart contract in the system. FavorTube uses its share to cover the costs of carrying out research and development and marketing activities after a unanimous vote of the community’s DAO (decentralized autonomous organization) committee. Content creators can issue NFTs for channels, content, or permanent subscriptions in advance with just one click and pre-sell them in order to crowdfund.
- System Rewards: Since creators are the core of the community and provide the most important resources for the platform, the system allocates additional rewards to them according to certain rules, similar to equity sharing models in traditional enterprises.
First and foremost, FavorTube provides content consumers with a place where they can subscribe to uncensored content, but they are not just passive fee bearers.
Unlike Web 2.0 platforms, they can also participate in the FavorTube community to receive different kinds of revenue in a variety of ways:
Fans can purchase the NFT of specific content to participate in early crowdfunding and receive revenue from it, or resell it later at a profit.
They can also join the DAO and fulfill various functions for FavorTube to receive rewards for their work. In addition, community members can create a guild of creators to provide support services for creators and receive a share of the creators’ revenue.
Moreover, users can receive rewards for providing the platform with storage or content distribution services, and even earn revenue from watching ads in the FavorTube application!
Thus, FavorTube connects content creators, consumers, and fans on one decentralized platform that allows all community members to benefit.
Though on the surface, FavorTube may appear and function very much like today’s Web 2.0 platforms, the technical foundation and business model underlying it are completely different.
Instead of earning untold profits from its users and keeping them on the hook by returning a pittance to them, this platform exploits the advantages of decentralization by building a community and fairly sharing revenue among its members.
FavorTube’s approach unleashes the power of creators and lets them reap maximum value from their work while providing its community with an anti-censorship, high-yield, and autonomously growing platform.
The power that just one decentralized video-streaming service can have in revolutionizing the way content is provided and monetized on the net should be a wake-up call for Web 2.0 platforms.
There is little doubt that creators and consumers alike are sure to abandon their Big Tech masters and demand Web 3.0-based platforms hosting other kinds of content as they become more and more aware of how this new business model benefits them.
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