Society has become inundated with acronyms meant to describe various aspects within the digital domain. SEO, HTML, CMS, and DeFi are some contemporary examples. Web3 is yet another term that has recently entered into our collective lexicon, and it has already begun to have an impact on the rules governing digital entertainment.
Although it might not take a rocket scientist to understand the finer points of Web3, the expertise of a computer scientist will certainly help. This is why we obtained the second-to-none insight of Byron Chad; a British technologist with a talent for peeling back the layers of seemingly complicated subjects. Let’s examine the role of Web3, and how it could affect the entertainment sector.
What Exactly is Web3?
We will begin this article by assuming that not everyone is familiar with Web3 software. Web3 is a system based on blockchain technology. Some tout it as the “next generation” of Internet protocols; primarily due to the fact that it offers a decentralised means of sharing information. This is in direct contrast to current systems that tend to be governed by large corporations such as Google, Apple, and Meta (Facebook).
“This is actually a much bigger deal than it may appear.” Byron Chad observes. “By taking the control of data away from the hands of big business, Web3 promises to provide creator-driven platforms. This also signifies that artists and entertainers will no longer be subject to the rules imposed by multinational third parties; eliminating many of the murky questions associated with the ownership of digital assets.”
While promising, it is important to mention that Web3 is still being developed. The good news is that many of the core components (such as non-fungible tokens, blockchain technology, and cryptocurrencies) are already in existence.
Creating a Level Playing Field
One of the reasons why Byron Chad has become interested in the future of Web3 partially involves his previous research involving the crossover between digital technology, and its role in our modern economy. He feels that Web3 is already making its presence felt; albeit in incremental steps.
“In principle, the entire cryptocurrency ecosystem is the first mainstream example of how Web3 architecture is rewriting traditional methods of finance. I’m once again referring to the concept of decentralisation, and a system based on democratised transparency. Online casinos, e-commerce platforms, and even real-world point-of-sale systems have begun to appreciate the benefits.”
We went on to ask Mr. Chad to summarise some of the main ways in which Web3 will transform digital entertainment, and the advantage that such a paradigm shift will provide.
Seller to Buyer
This is arguably the most important change. Web3 technology allows artists and creators to sell their services directly to their followers; eliminating the middleman. This ensures a reliable revenue stream, and opens the door to creators that may be hampered by limited funds.
Tokenized Rewards
Tokenization is another interesting possibility; especially when referring to sectors such as the online gaming community. Developers can reward players for their participation with a non-fungible token (NFT). These can then be used as a form of on-site currency, act as investment vehicles, or (potentially) be exchanged for fiat funds. Tokenization is also a powerful way to build longitudinal brand loyalty.
End-User Control
Web3 likewise aims to usher in platforms known as Decentralised Autonomous Organisations (DAOs). These systems are focused around community-driven ownership. Members can make collective decisions, provide valuable input, and cast their votes to determine the future of the entity in question. This is in direct contrast to traditional business models associated with control that remains in the hands of a few top decision makers.
Streamlined Interfacing
Unlike HTML5, Web3 is predicted to offer a greater degree of system-to-system interoperability. Data can be easily shared across disparate software packages, and digital assets (such as NFTs) will not be hindered by applications with different programming languages. Although this does not mean that popular platforms such as Android and iOS will become obsolete, it breaks down many of the barriers that would have normally led to compatibility issues.
A Rough Road Ahead?
Similar to previous articles written by Byron Chad describing the large-scale adoption of Bitcoin as a payment method, he admits that Web3 technology may still face some stumbling blocks. These include:
- Relatively complex user interfaces (at the moment)
- Scalability
- Regulatory concerns
- How Web3 can be integrated with contemporary digital systems
“However, I don’t feel that these are necessarily game-changers,” He emphasises. “They are instead roadblocks that nearly all innovative digital solutions face. Assuming that the momentum attributed to Web3 continues, I believe that this could have a profound impact across the online entertainment sector in the not-so-distant future.”
Considering how Web3 has already affected the entire cryptocurrency ecosystem, it is a relatively strong foregone conclusion that this technology will continue to make its presence known; excellent news for creators and consumers alike.
