Privacy risks, account bans and inequitable distribution of income – these are the main problems facing creators today, regardless of the content, be it text, audio, images or of video clips.
The reason is simple. Today, all content creators are locked into a centralized Web 2.0 business model.
Whether you post photos on Instagram, videos on YouTube or comments on Facebook, the formula is the same.
You post your content on the social network, and if you accumulate enough followers, these corporate giants may see fit to give you a portion of the ad revenue they receive from views of your work.
Content owners have no choice but to wait and hope that these faceless giants will show them a little generosity, and even if that happens, creators have no say in it. say about the amount they will receive or the duration.
The platform can demonetize content (if they fully monetize it) at any time and restrict or ban it if they don’t like it. In fact, they can completely ban a user’s account at will. Have you ever noticed that Facebook often hides a lot of content from the pages you follow and that YouTube often suggests certain videos that either don’t interest you at all or 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 who view a creator’s content and, therefore, the amount of revenue derived from it.
But what should a content creator do who does not want to pander to Big Tech hegemony? This rapidly changing market niche obviously needs a new approach and new rules that distribute power more evenly.
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 to Big Tech’s central servers, creators have essentially ceded ownership and control of their work to these virtual monopolies.
A decentralized approach to data storage can solve this problem, because content is not stored on a single server owned by a single entity, but on a large number of computers serving as nodes on a peer-to-peer (P2P) network. peer). This is the central idea of Web 3.0.
But how would this work in practice? Consider a web 3.0 platform called FavorTube for example.
FavorTube is a Web 3.0 powered video content creation and viewing platform. It is the first project of its kind to offer consumer HD video streaming over a decentralized network directly connected to both desktop and mobile devices through its own out-of-the-box applications.
Its ability to prevent censorship and implement hands-off monetary transactions allows a large number of pay-per-view videos to be placed 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, allowing them to earn much more.
It allows selling and buying video content and revenue sharing without third parties. Moreover, the platform uses NFT technology and concepts that allow content creators to fund 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 essentially own and sell content from creators to advertisers and then pay them what amounts to a small commission, creators receive the lion’s share of revenue with FavorTube.
And all of this is done automatically via smart contracts that distribute rights and revenue between content creators and the platform according to a predetermined formula. This disrupts the current Web 2.0 business model.
As a Web 3.0 platform, FavorTube has the characteristics of a blockchain project, so its community is its most fundamental resource. It’s not just about creators, but also about consumers and supporters, and all participants have a chance to share in the revenue generated.
FavorTube’s innovative use of NFT’s decentralized finance features allows content creators to participate in crowdfunding and fans to share revenue from their creations, creating a larger community-based business model for content creation.
The relationship between FavorTube and content creators is an equal partnership, with FavorTube providing an advertising and promotion platform, and the 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 commission from sales and trades.
Since the creators are the main asset of FavorTube, they receive the highest percentage of revenue from the operation.
This comes from two sources:
- Consumer Subscriptions: Fees paid by consumers when subscribing to a creator’s channel are automatically assigned to the creators after removal from FavorTube through a smart contract in the system. FavorTube uses its share to cover the cost of carrying out research and development and commercialization activities after a unanimous vote of the DAO (decentralized autonomous organization) committee of the community. Content creators can issue NFTs for channels, content, or permanent subscriptions in advance with a single click and pre-sell them to fund crowdfunding.
- System Rewards: Since creators are the heart 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 capital sharing models in traditional companies.
First of all, FavorTube provides content consumers with a place where they can subscribe to uncensored content, but they are not just passive payers.
Unlike web 2.0 platforms, they can also participate in the FavorTube community to receive different types of income in different ways:
Fans can buy the NFT of specific content to participate in early crowdfunding and earn revenue, or resell it later for a profit.
They can also join the DAO and perform various functions for FavorTube to receive rewards for their work. Additionally, community members can create a Creator Guild to provide support services to Creators and receive a share of Creator revenue.
Additionally, users can receive rewards for providing content storage or distribution services to the platform, and even earn revenue by watching ads in the FavorTube app!
Thus, FavorTube connects content creators, consumers, and fans on a decentralized platform that allows all members of the community to benefit.
Although at first glance, FavorTube may look and function like today’s Web 2.0 platforms, the technical basis and business model behind it are completely different.
Instead of reaping incalculable profits from its users and keeping them on the hook by returning a paltry sum to them, this platform harnesses the benefits of decentralization by creating a community and sharing revenue fairly among its members.
FavorTube’s approach unleashes the power of creators and empowers them to get the most out of their work while providing its community with an anti-censorship, high-return, and self-growing platform.
The power that a single decentralized video streaming service can have to revolutionize the way content is delivered and monetized on the net should be a wake-up call for Web 2.0 platforms.
There’s no doubt that creators and consumers alike are sure to abandon their Big Tech masters and demand Web 3.0-based platforms hosting other types of content as they become more and more aware of the benefits of this new business model.
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