It is easy to overlook Web3. This is a buzzword that get tossed around. Of course, people associate it with cryptocurrency, something that was tarnished by the "price go up" mantra that so many espouse.
That said, there are fundamental reasons why Web3 will be bigger than people think. In fact, this could be as disruptive as the Internet itself.
In my research, I try to understand what is taking place at the fundamental level. This is where we can separate the hype from true technological advancement. With Web3, this takes us down a path not often discussed.
Here we are going to delve into the true transformation that is bringing to light. It is something that has always happened, which is why industries get disrupted.
This is also why Web3 is going to be enormous.
Abundance and Scarcity
We often discuss the Age of Abundance.
This is a bit misleading. In totality, we are going to see abundance as the digital world tends to create more. Actually, that is the path of technology in general.
However, one thing that we have to make clear is that not everything is abundant. There is always scarcity. In fact, value is derived by the shift from abundant to scarce. When this occurs, the value is pushed elsewhere.
For example, the Internet was a game changer for many industries. Why? Because it disrupted the abundance/scarcity equilibrium.
Prior to the Internet, information was scarce. Hence, it was a valuable commodity to have. The Internet changed this, making information abundant.
So what became valuable? The networks.
We saw the rise of Facebook, Google, Amazon, and other companies that were able to control the networks. The second half of the 1990s and early 2000s saw incredible amounts of money spent on building infrastructure. At that time it required spending billions of dollars running cables all over the place.
As we can see, the scarcity shifted.
People question have can there be value in a world of abundance. They key to this is understanding scarcity always exists; it just keeps moving around.
The Disruption of Web3
Web3 promises to be so disruptive for a number of reasons.
To start, using the scarcity/abundance idea, it once again changes the equation. At present, networks are the scarce item. This is because people do not have access to them from a development standpoint. One cannot simply go and build on Facebook's network. The same is true for Twitter.
Web3 makes networks abundant.
Not only can anyone build on a public network, the software is open source. This means developers can fork Bitcoin, Ethereum, or Hive. This means we could eventually see million of networks set up, many for specific purposes.
The second feature that is standard is the ownership of data. Here we also seeing the model switching.
At present, whatever is posted on the siloed system is property of the company behind it. A picture posted to Instagram belongs to Mark Zuckerberg. The same is true for a product review posted on Amazon.
This is not the case with Web3. By having ownership, users are able to [share in the economic value generated through this data. Here we are entering a realm that is only just starting to be realized. data is becoming more valuable with each passing year.
For now, it is going to increase the market capitalization of those corporations harnessing it for gain. Over time, we all will benefit financially as the open source and Web3 communities start to implement it.
Why Disruption Happens
We all heard the term "disruption" but how many have actually researched it? In other words, do you truly know what it means?
If you want some deep dive information, search Clayton Christensen.
Basically, disruption is the entry of a new player into an industry, with a lower quality product that is less expensive. This attracts the more price sensitive buyers as well as newer customers. The threat is ignored by the incumbent until it is too late.
Over time, the product improves until it crushes the incumbent. This firm(s) often realize it at a point where it is too late to change.
We have to keep in mind that existing companies have a lot invested in their present business models. This can be everything from the compensation plans of executives to the infrastructure built to support existing operations.
Even when incumbents see the threat coming, they are often unable (or unwilling) to take the radical steps necessary to fend this off. It happened repeatedly throughout history.
It is also why Web3 is going to spread like wildfire. Everything in the digital world is now up for grabs. We are dealing with a fundamental change in how the Internet, the most disruptive force in the last 150 years, works.
Equity Value
Web 2.0 is an extractive system.
When we look at the different platforms, we see they have their hand in everything. Facebook gets 100% of the ad revenue. Apple takes 35% (or is it 30%?) of sales on its app store. PayPal takes a percentage of every transaction that occurs.
Web3 is going to alter this. There will not be this degree of extraction. Instead, it will remain within the ecosystem, with the members having equity stake.
This, naturally, comes in the form of tokens. We discussed the idea of cryptocurrency being misleading. Here is where we clearly see how these are value capture tokens, hence crypto-assets.
Here we see a massive shift in the entire distribution model. Instead of that being directed to founders, venture capital firms, and investors, we see how those who are generating the value, through their activity, are the ones receiving the financial benefit.
What this means is the userbase is incentivized to grow the value of the network because they are sharing in it. Here is where we see the transformation of scarcity which we will cover in the next article.
In Conclusion
It only makes sense that Web 2.0 proponents, i.e. the ones truly benefitting, are going to slam Web3. This is a tidal wave unlike anything they ever saw before. At some point we will be dealing with a tsunami that obliterates the siloed entities. History shows this is the case.
Even if the Web 2.0 companies wanted to transform, they could not. The likes of Meta and Google have responsibility to their shareholders. Wall Street is not going to allow a company to have bad numbers for a couple years while it transitions to fend off a disruptive force. There are a number of industries where the end of the decade is the end for these companies.
The scarcity/abundance flow is very telling. People who grasp this early can see how disruption happens. Companies spend a fortune building their operations around something scarce, only to find it abundant in the future. Once something become commoditized, like we saw with information, those entities that benefitted take a major hit.
Web3 is going to be much bigger than people think. There is a fundamental shift in scarcity taking place. There are a lot of companies that hold something to be scarce which is actually becoming abundant.
This is the opportunity for thousands of projects around the world.
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Web3 is the future of content creation. I see the future of other web2 platforms like Facebook and Twitter and I think web3 with outperform all those far way better.
It's decentralized nature and the fact that it's open source present way bigger advantage.
Why should a creator publish their videos, books, posts on a Web3 platform where they don't receive any compensation?
After 7 days, any compensation here comes to an end, and no, donations are not compensation.
If someone forks the entire blockchain, they have their own resource, and no creator has the option to decide whether they want that or not.
Or am I making a thinking error here?
Not a thinking error ... you just need to expand your thinking... it depends on how prolific you are, and how hard you are willing to work to engage with other creators and build an international audience. PROVIDED one puts in work in the down times to build an audience, one can receive much more for a chapter here than an Amazon digital download during the bull, and then put the reward for interest ... so, with a long view, one can build perennial income. The other thing I have now done twice: content I made here became a fourth and fifth book, and in essence I get paid in both places to talk back and forth about the same content. Past Hive creation also PAID for the necessities of my fifth book!
Seven days is as much time as Hive's system can pay you, indeed ... but Hive Power and HBD interest pays every day, learning how to build a community audience pays everywhere, and repurposing content can pay everywhere. My reach in the world, because of Hive, is on FOUR CONTINENTS, every day of the week, and thus my fifth book is on four continents, seven days after its launch. That's the power of Web3, with an expanded approach!
Thank you, I do the same, on Facebook+Instagram,Twitter and Tiktok. And if it also fits Hive, which it rarely does, then here too.
But that has nothing to do with what I mentioned above. You can do the networking work and thus organic growth on any other platform, and thus attract new customers to your own product again and again. Hive is really not unique in this respect.
Herr Zett, I note this from what you said above: "And if it also fits Hive, which it rarely does, then here too." Your content is actually charming, a delight for me as I renew my studies of German. Each of thosr, at the top of the bull market, would be worth seven to ten times what they are today, even in a seven-day compensation period. I happen to know about that because I was here in the last bull market. The next bull market starts in the spring if the cycle holds true to past ones. But even today: there are Hive communities that would offer you a more supportive environment for your content (travel and lifestyle and photography communities come to mind), and you are blessed to be in one of the most supportive language and cultural groups on Hive. You also could consider including an English and Spanish translation to your posts, and quadruple your readership.
The portion unique to Hive is indeed seven days to plan for your work to earn through being voted on ... and then 3-20 percent interest on your proceeds possible, every day, with full exposure to the crypto cycle's two years up (and then, as we have been experiencing recently, two years down, but we just have to plan for that). The portion unique to Web 3 is that your creativity and your personal data is not being aggregated and used by corporations to feather their nest, 24/7 -- only you can monetize you, here.
Hive is not yet all of Web3, nor are either what they shall be in future ... but I encourage you to expand your thinking. I cannot convince you if you are not of a mind to be convinced ... but ... aber ... ich ermutige Sie.
There is a point to that. Posting only in German and without writing under the umbrella of a community is a bit like talking to yourself, especially since the German-language posts here have declined sharply.
But that has to do with my work on the Web2 platforms. There I am active in giving advice especially to Germans who are traveling and working abroad. And you may know that the Germans are a special people with even more special laws. That would just bore everyone else.
Since I don't have an audience for that here, all that's left are the more or less moody posts about my daily life.
I tried travelogues or photography once, but I got bored, perhaps because I'm generally bored with that sort of thing now. There is too much of it and I would just join the masses of untalented people.
I can still invest and vote here without having to center all my creative work on this platform. That's why I was a bit puzzled by that aspect in your previous response.
If I look back over the years, especially in my older accounts here, I notice that the images no longer show up and the loading times are agonizingly long. That's precisely why I stopped sharing my posts from this platform. It's pretty embarrassing to spread around dead links. That's something I don't encounter with my other platforms.
Just to be clear, I'm not trying to speak ill of Hive. I genuinely enjoy writing here and previously on Steem. But, in my opinion, it hasn't quite turned out to be the game-changer I had hoped for, especially compared to what I envisioned seven years ago.
Thank you for your inspiration. I am not an advocate of the centralized web. I was just addressing the lack of motivations for most creators here. I don't think I have a very exotic opinion on it, otherwise 3speak and also the text based posts would be overflowing with new users. In fact, it doesn't seem to be growing at all or only very moderately. And there must be a reason for that, right?
There is a good reason for that ... crypto is in a bear market, and anything crypto-exposed has to deal with the ups and the downs. Hive grew massively in the bull two years ago, and has shrunk tremendously ... the crypto market itself shrunk 70-95 percent in that same time! But again: if patterns hold, it will grow again by that much in the next two years and probably more. And, you may check this by where Hive is growing: anywhere in the world where the division of money on Hive is considerable. Not where the dollar or euro or pound are primary ... not yet ... but because of the growth in usage where Hive is being consistently used, that may add tremendously to Hive's rise in the long run.
Hive is indeed a work in progress ... I stay in my chosen domains and occasionally I do have trouble with photos and images ... but I do understand working with startups, and I do realize where we are in the crypto market.
No, indeed, you need not center all your creative output here. I do not think you are an untalented person, and no one platform may rightly contain you. We all have real lives, and Hive is a piece of it, not a god. Web 3 is a piece of life for some in the same way. So too Web 2, and Web 1. Everyone may pick and choose and craft what they need from all of it ... but in the long run, Web 3 may well take a larger place for many.
Well said. Much ado is made about Web3 overtaking Web2. In my opinion, that's the wrong mentality. Web1 isn't dead. Web2 improved it. You can still find websites online where all you can do is read. Like this one, for instance.
30 years from now, we'll still be able to access some of the top Web2 properties of today. They'll still be Web2 properties.
As Web3 grows, people will learn to deploy Web3 functionality where and when they want it and leave Web2 alone otherwise. As you say, savvy Internet marketers will take their Web2 content and repurpose it as Web3, and vice-versa. They did that when the Web transitioned from read-only to read-write, and they'll continue to find creative ways to make use of older content and make it new again for Web3.
Very true. It is not a battle of mutually exclusive competitors, but in the end the best of all will merge.
And what is the compensation on the Web 2.0 platforms? And why does this only end at 7 days?
Think about where things will be in a few years from now.
I'm just responding to the thesis in your post linked on Twitter, that's all. I don't want to start a general discussion about Hive in particular. I'm here, so I accept the rules here.
You're talking about, what about in a few years? I remember discussions in the fall of 2016 where we were dreaming of overtaking Facebook. Well, it turned out differently. I don't know what will be in a few years, I also don't know why so many creators have left this platform and are focusing on the centralized platforms, and even paying to be seen there. But there must be a reason why it's like that?
Well I would say that the ease of use and the features offered by the applications is lagging big time. We still are in need of some necessary infrastructure in Web 3 in general, let alone Hive. A lot of building left before the traditional social media, like banking, is under direct threat.
So with that, I can see why people are still going to the centralized platforms. Plus most do not care about decentralization.
Unfortunately, the many construction sites are true. I couldn't reply to your post because it's on the blockchain, but you use a different frontend and I was only logged in to Hive via keychain. So I had to search for your account on PeakD, only then could I reply. How many do that (on a cell phone) or even know that?
Decentralized: it's like Linux operating system for the end user. They know they're better, but usually only use them to try them out and go back to the traditional OS because they're just easier to use. Ultimately, it's entertainment and not work.
And secondly, for the end user, decentralized is not necessarily freer, but often more arbitrary, as you could and can see here on Hive. I just had some fun and searched for the topics #Israel and #Gaza. Social media is flooded with them.
But here? Either the search function is terrible or most people here are holding back on the topic (or both).
That's why I believe that Web3 will be important one day, but only together with conventional media. For example, as a payment function, value store, rights manager, bookkeeper or smart contract on platforms such as WeChat or Twitter or gaming platforms.
A bit like the role of Linux as an operating system for servers
They will probably never achieve a reach without this.
I often think of how folks used to say that email was a joke and no one would ever use it!
There was quite the furor at the time once people did start using it... but most institutions, businesses and whatnot all kept doubling down about how snail mail (postal services) would never be appended in the field... which history shows they were very wrong about.
Had those same postal providers simply began providing email services... who knows how things would have gone for them.
Yeah. Also, what is they were not funded, at least to some degree, by governments. Where would they be? My guess is gone.
On the flip side though the postal service in this country does have a bunch of Web3 stuff rolling out. If my memory is correct they will essentially all become banks in some capacity and be the handlers of a 'digital currency' or digital asset that has direct USD value.
I think they have yet to settle on what blockchain to use or if building their own is a better approach. They would all run multiple nodes (much like exchanges do) but the primary node would be their own chain.
Don't quote me on any of that because its just what I can recall about the initiative off the top of my head.
As of now the transition towards web 3 has already been started but this is in the early phase where it might not be visible much. I believe people will observe a significant shift in next few years once things are grown up and more people are aware of web 3 and how it is going to change the way we use internet and social media.
Web3 is already making waves at infancy, I think with better publicity and engagement people will definitely come to be aware of the possibilities present here and the growth will be massive.
Yes, the transition is already happening but not on scale and this is why most of the people are not aware. This can improve with better publicity and this is expected to happen in next few years. It's big change so obviously it can take some time to have significant user base.
I guess you're right, alot of infrastructure has to be put in place first of all.
Still a lot of challenges. People want to put the cart before the horse. We need ease of use, infrastructure, and a ton more applications before we can even imagine appealing to the masses.
So far, Web3 have very little to sell people.
I believe that improvements are happening so quickly and although it may not be all ready as if now, in the near future we will experience a huge influx of people into web3 and massive migration from web2 to web3
With technology, the tendency is to overestimate the impact in the short term and underestimate it in the long term.
That is the case with Web3. It is going to be years for the masses. We have a lot left to do.
I do agree Web 2.0 is done. It will simply take a while.
It is miniscule so very difficult for most to see. This is going to take some time to build just like the Internet. We need a lot more infrastructure and a ton more applications.
The rest of the decade requires a massive buildout.
An article worth reading for all of us who are entering Web 3.0!... There is a lot said here about the future of Web 3.0 in a very concise way!... Excellent approach, I greatly enjoyed reading this!... Applause and thank you for sharing!
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Especially those of us who are associated with Hive can at least somewhat guess what the benefits of Web 3 are. To be honest, the need for web 3 is very high in today's world.d
It is a progression of the Internet.
We saw that medium appear and change the world. Now we are onto another phase of it.
The reference you made to the internet and how it took over the world is very legit. I didn't know much about the massive adoption of the internet until I heard all about that from someone that was part of that early adoption. Turns out there was really a time when folks doubted the relevance of the internet.
Now, everyone is onboard and most people are pushing internet subscription to the top of their priority.
I always think about Web3 and how massive it will be in the future. I ask myself if we can attain financial freedom through it. I like a lot of features that Web3 offers. I like the content ownership and all, but I always look at what can be generated through it on the financial front.
At the moment, using conventional banks for Savings seems like a waste of time and resources. Inflation is already rocking Nigeria's economy and the purchasing power of our currency is getting ridiculous. I hope that Hive for an example will stand forever and grow even bigger as a true Web3 tech.
Reading this was fun. Thanks for sharing this 👍
Technological disruption is always the same.
It comes from the outside and stars on the fringes. The incumbents first ignore it, then they attack it. Eventually, the capability of the new tech takes over and is the preferred option.
The incumbents become nothing more than a footnote in history.
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You write that data is the most important thing in Web3 and therefore the valuable, because scarce, component. Right?
But how does this fit with the current handling of these data in Web3, here on Hive?
After 7 days, my right to remuneration expires, while 10-year-old videos on YouTube and 12-year-old blog posts in Web2 still generate revenue for me.
In Web2, my content is technically not mine, but belongs to the network. However, the use of this content is linked to my account and my rights. Ultimately, I decide who, where, and how long this content is accessible to others.
I don't have this option here. Once published, I have given up all rights, including the right to remuneration. I no longer have the right to withdraw it either.
Anyone who wants to can copy it, fork it, and enrich themselves with it.
As long as this is the case, this system will not be successful. It is a system that relies on creators with no rights.
Or am I wrong?