In the current Web 2.0 paradigm, we are in the advertising based system. Consider a platform like YouTube where there are 3 parties at play. The content creator, YouTube, and the advertiser.
In that scenario, the content creator puts up some content, which is hosted by YouTube. Rather than YouTube charging the content creator for the online real estate, they derive the money from the ad revenue paid by the advertiser. They also pass on some of the revenue to the content creator if they are eligible.
In Web 2.0, the power is concentrated with YouTube, who’s the content host. They decide how much the advertiser pays, how much they take from it and how much they pass on to the content creator, if anything. The fourth entity, the content consumer is totally left out of the bonanza.
Web 3.0 changes all that. The first thing it does is decentralise the power structure by removing the “middleman” YouTube from the equation. Now the advertiser can go directly to the content creator. The content consumer also get’s to share in the revenue, since they’re often involved in curation such as sharing the content with their friends.
In this video I explain how this happens, including the concept of tokenisation, which makes all this possible.