Associated with libertarian politics, arcane terminology and cartoon monkey avatars, the idea of ‘web3’ can be hard for outsiders to fathom. But beyond the obscurity and hype lie both opportunities and risks for the UK economy. So, what is web3? It very much depends on whom you ask.
web3 promoters
For its advocates, web3 marks an important shift towards the next iteration of the internet. Its predecessor, Web 2.0 – the era of large, powerful social media platforms (such as Facebook) – is said to be characterized by asymmetries and injustices.
Dominated by a small number of Big Tech companies whose founders and investors have amassed unprecedented amounts of wealth and power, Web 2.0 has had consequences that are widely seen as damaging to society and democratic institutions.
This financial success seems to have been built off the backs of Web 2.0’s users. Professional creators of music, imagery and video receive only a small fraction of the revenues that their content generates for platforms like Spotify and YouTube.
Developers of apps have no option but to pay 15-30% of their revenue to the App Store (Apple) and Play Store (Google/Android) in return for distribution. At the same time, ordinary users supply the posts, engagement and behavioral data that are integral to the advertising-based business models of Instagram, Twitter and TikTok. Despite their role as ‘prosumers’ (producing as well as consuming), they receive no financial compensation.
Continue reading: https://www.economicsobservatory.com/what-is-web3-and-what-might-it-mean-for-the-uk-economy
web3 promoters
For its advocates, web3 marks an important shift towards the next iteration of the internet. Its predecessor, Web 2.0 – the era of large, powerful social media platforms (such as Facebook) – is said to be characterized by asymmetries and injustices.
Dominated by a small number of Big Tech companies whose founders and investors have amassed unprecedented amounts of wealth and power, Web 2.0 has had consequences that are widely seen as damaging to society and democratic institutions.
This financial success seems to have been built off the backs of Web 2.0’s users. Professional creators of music, imagery and video receive only a small fraction of the revenues that their content generates for platforms like Spotify and YouTube.
Developers of apps have no option but to pay 15-30% of their revenue to the App Store (Apple) and Play Store (Google/Android) in return for distribution. At the same time, ordinary users supply the posts, engagement and behavioral data that are integral to the advertising-based business models of Instagram, Twitter and TikTok. Despite their role as ‘prosumers’ (producing as well as consuming), they receive no financial compensation.
Continue reading: https://www.economicsobservatory.com/what-is-web3-and-what-might-it-mean-for-the-uk-economy
