“Technology should benefit humanity.”
Do you agree with that?
I mean, imagine someone arguing that tech should be harmful to humanity.
Yet look at the world of social media. It’s become a madhouse of sensationalism, ego-feeding and hype-driven sales tactics.
Companies like Facebook (or “Meta” now) make their money from advertising revenue. And how do they maximize ad revenue? By keeping people addicted to their platform.
With this ad-based business model, algorithms are optimized to maximize people’s time on these platforms. And time on site is maximized by attention-hijacking and creating addiction. Not cool.
Everyone has an intuitive sense of this, yet we still use these platforms, because that’s where everyone is on the internet.
That’s changing though.
We’re seeing glimpses of a new, more pro-humanity internet zeitgeist.
A loose classification of this is what people are calling Web 3.0 (or Web 3).
Now before we get into Web 3.0, it’s important to understand Web 1.0 and Web 2.0 for context.
Web 1.0
Web 1.0 is the first mainstream iteration of the internet, from about 1995-2005.
It’s characterized by static web pages, and mostly text. It was like a digitized database of analog texts (books, newspapers, magazines, etc).
If you used the internet during this time, you remember this kind of look and feel.
Then around 2005, we began to evolve past a simple “database in cyberspace” and into Web 2.0.
Web 2.0
Web 2.0 is the internet from around 2005 to present.
It’s characterized by being interactive and supporting more kinds of media (video, images, etc).
Web 2.0 is exemplified in social media. Instead of being static web pages, it became dynamic where people could interact more with each other in unique ways.
However, Web 2.0 became dominated by a few big companies: Google, Facebook, YouTube, Twitter, etc. This centralization began blocking the free flow of information and stifling humanity’s innovation, which are both antithetical to what makes the internet great.
Instead of people being free to create, collaborate and reap rewards, the central authorities of Web 2.0 skewed the internet towards their own profit, instead of the benefit of all humanity.
Now was this all a planned out evil conspiracy? Mostly not. These problems with Web 2.0 are simply side effects of the business model.
These companies created amazing platforms and services that connected billions of people, yet also took advantage of the people using it. They collected everyone’s data and sold it to advertisers, while keeping people addicted to the platforms.
The vast majority of financial value was syphoned by these corporations. While the CEO’s and investors made billions of dollars, none of this was shared with the creators who made all of the content and provided all of the value.
Even if someone created an Instagram post that a million people liked, they didn’t get a cent out of it. All direct profits based on that attention went solely to Instagram. Essentially, everyone on social media was creating and sharing for “likes” while these massive corporations hoarded all of the profits.
Over the last couple years, most people have come to realize the unfairness of this setup, which is leading to the emergence of Web 3.0
Web 3.0
Web 3.0 is the new paradigm of the internet.
Web 3.0 is based on three main qualities:
- Decentralization
- Creative ownership
- Collaboration
The invention of blockchain and cryptocurrencies provided the basis for Web 3.0.
Instead of needing everything to be centralized, blockchain technology allows for a more decentralized internet.
Anything can be created on a blockchain, where it can be publicly validated. It also allows for more peer-to-peer connection, without the need for centralized middlemen. This eliminates the need for central authorities to ensure trust, thus making “big tech” less relevant (if at all).
For example, Facebook stores all of the platform’s data in a centralized way, and their policies are determined in a centralized way. That’s asymmetric power in the hands of a central authority. A decentralized social media platform would store all data on a distributed blockchain network, and policies can be determined in more of a participatory manner. This distributes the power among the whole network of users.
The second key to Web 3.0 is creative ownership. In this new paradigm, everyone will own their own data (or have the option to sell it if they choose). More than that, creators will own their own creations and the profits that come with it.
We’re already seeing the beginning of revenue-sharing, even with platforms like YouTube who reward creators a small percentage of ad revenue for every view they get. Though this is a start, it’s still exploitative as YouTube takes the lion’s share of profits and can change the terms at any point.
A Web 3.0 version of this would be that creators get rewarded for every view, as well as have co-ownership in the organization. This can be done via tokenization, basically having their own cryptocurrency.
Here’s what that looks like: A platform rewards creators in a token, and every token a creator has is equity in that platform. So as the platform grows and the token rises in value, everyone who holds those tokens benefits from the rise in value. For example, let’s say I’m a creator and earned 100 of a token. Then if the token went from $1 in value to $10 in value, my 100 tokens are now worth $1,000. This incentivizes creators and users to grow the platform by word of mouth.
Imagine if every “like” you got on Facebook gave you stock in Facebook. That’s basically what we’re talking about here.
And that’s only one use case. There are also things like NFT’s where creators can directly sell their creations to people, in a way that ensures the authenticity of what’s sold. The doors are wide open for all kinds of new ways to share and earn a living by providing value on the internet.
The decentralization and creative ownership elements of Web 3.0 naturally facilitate collaboration. It opens the doors for the free flow of information and catalyzes innovation.
Without the friction and greed of central authorities, people are free to create and collaborate in unique ways.
Of course there will be scams, ideas that fail and all that, but that’s the nature of exploring new territory. However, decentralization, creative ownership and collaboration will create the biggest cultural renaissance humanity has ever seen.
When you allow people to be creative and give them stake in the game (the ability to be a co-owner by participation and fairly compensated for the value they create), the most amazing innovation happens. We will see both the solving of humanity’s major problems (energy, sustainability, medicine, mental health, etc) and the emergence of mind-blowing creativity.
That’s what Web 3.0 facilitates: the fertile ground for a cultural renaissance that ushers in humanity’s next level of evolution.
What Can You Do?
Web 3.0 is participatory.
You don’t need permission from anyone to get involved and you don’t need to do things in any traditional way.
With that said, here’s what you can do.
Explore the initial glimpses of Web 3.0 we’re seeing:
- Learn more about concepts like Web 3.0 and the creator economy
- Invest in cryptocurrency and learn the ropes there
- Start using creator-first social media platforms like Odysee, Audius and PeakD (remember most of these are still in their early stages)
- Support creators who inspire you (and let them know about Web 3.0 and the new creator economy)
- Check out the first wave of pure Web 3.0 platforms
Then there’s the personal, inside-out changes:
- Express yourself creatively (write, draw, paint, dance, sing, make music, etc)
- Share your unique ideas more
- Collaborate with like-minded people
- Choose a career that’s more in alignment with your values
Remember, we’re creative beings, so let’s live creatively.
Align your thoughts, words and actions with things that benefit humanity.
We’re living in times of immense opportunity.
Embrace the magic.
Much Love,
~ Stephen Parato
PS – If these kinds of topics interest you, check out my new project Crypto Insights Weekly