Web2 and Web3 communities approaches are two of the most significant frameworks for community creation and engagement on the internet. They affect social media, e-commerce, gaming, and many other aspects of online life. Though the two concepts share similar core features, there are major differences in the way each approach builds, governs, and incentivizes their communities. Here is a breakdown of the key differences between web2 and web3 approaches to community creation, from tokenomics to censorship.
Tokenomics
When you post an image to Instagram, they get control over it. You don't earn anything even if you get lots of likes and followers. It is like you work hard every day adapting to the algorithms but don't get anywhere like a hamster running on a wheel.
But, there is a different way called Web3.
Instead of just giving pictures away for exposure or likes, you can sell them digitally for coins or tokens that have real money value. This means you can get paid for the work you put in AND it matters who sells them. And because of the technology, you can keep track of who buys from you, which means you can reward those who bought from you easily and create a loyalty program that hasn't been possible before.
With loyalty rewards, your followers, or what we call Community, are incentivized to connect and follow your work because of the value you provide. No more dancing on tick tok or reels like a performing monkey for pennies. Now you can focus your energies on something that gives you back the control over your art, pays you directly with no middleman, and helps you build strong connections with the people who support you.
Secure Technology
Although its a learning curve, the blockchain essentially is a new, unhackable way to make transactions that are transparent, democratic, and more secure. Because of the transparency of every transaction and art sale, everyone can see the history of who made the artwork, and who has owned it. This gives an secure digital proof of authenticity contract that is forever tied to the artwork.
What does this mean for artists? Well it is the dawn of an era where the OG artist who makes a piece is part of what makes that digital piece valuable.
For example:
If I painting a copy of a Renoir painting, which sell for millions of dollars, I cannot sell mine for that much. Even if it was the best damn copy and most couldn’t perceive the difference between a true Renoir and mine. Why? Because no one wants a Renoir style piece from me, they want it from the man himself.
I don’t want to pay $1,000 for a ticket to see a Taylor Swift imposter, I want to see the real Taylor Swift perform.
There is immense value in the direct personal connection to the artist.
Someone can right click save my Instagram photos, but people won’t value them because they can clearly see via the blockchain technology that I did not put it up for sale. Someone else is trying to sell them and therefore that digital file has no value.
This is game changing! Finally the technology has advanced enough to see the copycats, give public access but individual ownership over work, AND get paid for it!
Web2 and web3 technology are fundamentally different, with web2 being more traditional to what we know, while web3 introduces new tools to the equation.
Web2 refers to content that is created and stored on a server, accessible from anywhere over the internet. This type of technology is limited in its flexibility, rights and controls to the original artist. We depend on Instagram to monetize our reels, to push our posts to be seen, etc. Web3 is about taking that power and putting it in the hands of the people who make the social media platforms what they are.
The Future for Creation
One of the most significant potential impacts of blockchain technology on the creative economy is in the area of monetization. Creators will have more control over their work and how it is distributed, as they can earn digital tokens or coins that represent value. Furthermore, these digital tokens or coins can be traded on decentralized exchanges, allowing creators to monetize their work outside the traditional structures of the financial system.
Looking ahead, web3 has an endless potential for new applications of decentralized governance structures. One possible example is the creation of web3-powered crowdfunding platforms. Creators will be able to launch their projects and fund them without intermediaries or traditional fundraising limitations, making the industry more accessible and democratic.
However, the growth of web3 communities is not without challenges. Governance structures could be challenging to design correctly, and the technology may not be accessible for artists or creators who are not as technically savvy. Additionally, regulatory issues surrounding digital tokens and coins could be a hurdle for web3 communities.