Original link: https://medium.com/@deanlaurasia/popp-echo-in-the-buzz-of-the-creator-economy-what-risks-changes-should-you-watch-out-for-74bbed5c6bf6
In recent years, with the rapid development of the Internet, various social media and online platforms have attracted a large number of creators. These platforms provide them with new opportunities to showcase their talents and start content businesses, and also bring vitality to the development of platform economy and real economy. Creators are becoming more and more important to these social media. So the question is, what risks are worth paying attention to behind the "creator economy"? How do we view the "creator economy" in the Web3.0 era? Let's take a look.
The growth of the creator economy
American scholar Paul Saffo pointed out that modern economic development has experienced a transition from the "producer economy" in the first half of the 20th century to the "consumer economy" in the second half of the 20th century, and then to the "creator economy" in the early 21st century. At the end of the "producer economy" stage, "overproduction" occurred. Against the background of "oversupply", the "consumer economy" emerged. At the end of the "consumer economy", "attention deficit" appeared. At this time, the "creator economy" came into being.
What are the current revenue models for creators?
With the rapid development of the digital age, creators' profit models have become diversified, such as: "content + advertising", "content + payment", "content + e-commerce", and "content + IP".
âContent + Advertisingâ: the profit model commonly adopted by social media.
"Content + Payment": also known as knowledge payment. The knowledge payment market in China will reach 112.65 billion yuan in 2022, but it also faces content quality issues.
"Content + e-commerce": At present, the scale of content e-commerce has surpassed that of traditional e-commerce. They can create differentiated value for unplanned purchases, non-standardized goods, branded story products, etc.
"Content + IP": Based on the "intellectual asset" attribute of content, individual creators and their works can create IP value.
Therefore, the coexistence of content and business has contributed to the prosperity of the "creator economy".
Ignored issues:
When creators sell their works, they often also sell the audience's attention to advertisers, forming a "secondary sale" model. In addition, the control of centralized technology platforms deprives creators of full control over content and monetization. At the same time, excessive attention to popular content may ignore the importance of user preferences and data privacy.
Web3.0 changes the economic creation of creators
In the Web3.0 era, creators can not only reshape their digital identities, but also regain economic dominance. The core concepts include decentralization, trust mechanisms, and data autonomy. Blockchain technology has become a key support for Web3.0, bringing greater transparency, security, and decentralization.
Web 3.0 tips the balance of power and ownership back toward creators and users.
This transformation is achieved in four main ways:
1. Data ownership. Creators have independent digital identities and smart contract accounts to manage their works. They can create their own PoPP Profile to record every user's participation, major events, and achievements in the blockchain network. For example: whether publishing Echo or collecting other people's Echo works, they will be stored as NFTs in Profile NFT.
Enter to create PoPP Profile NFT: https://echo.popp.club/
2. Autonomous social graph construction. As mentioned earlier, the web2 network almost controls our fans. Once we lose our web2 network account, it is difficult for us to find these fans again. Unlike the Web2 era, Web3.0 gives creators greater control. When you share your PoPP Profile with your partners, they can establish an unalterable connection with you. We call it "soul binding".
3. Decentralized open source ecosystem. The platform's proprietary product development is a major reason why they are able to maintain control over their ecosystem. Platform owners and internal teams decide what features to develop, to whom they can be provided, and under what conditions. If creators want to participate in the platform, they must accept these conditions, which will cause creators to be locked into a specific platform. Web3.0 encourages open source development, which can break this state through open source development.
Disclaimer: This article does not provide any investment advice!
