What’s next for blockchain and the creator economy

After two years and many COVID-19 restrictions lastly subsidizing, the world is welcoming the return of in-person theater, motion pictures, comedy, music and sports activities. This has left some questioning what’s going to occur to the legions of digital creatives who occupied and entertained us whereas regular life was at a standstill — and to the multibillion-dollar economy they inhabit.
Will the world neglect the platforms and artists they found throughout the pandemic now the doorways of festivals, vogue exhibits and live shows are open to them once more? Is the creator economy, which latest estimates counsel will exceed $100 billion this 12 months, robust sufficient to face up to a stampede again to real-life experiences?

I strongly imagine it’s. Government-imposed restrictions could have accelerated the tempo of change, however the transformative traits in video streaming we witnessed throughout the pandemic had been nascent earlier than and would have caught maintain regardless.

And, whereas I declare no deep coaching in macroeconomics, I’m a technologist who has spent the previous a number of years working in and round one among the most transformative new applied sciences to come up in a long time: the blockchain. This is the know-how that can utterly reshape digital life, supercharging the creator economy in the course of.

Related: Decentralization revolutionizes the creator’s economy, however what’s going to it carry?

Playing on a digital stage
The enforced slowdown has given many artists the time—and the push—wanted to experiment in the digital sphere, discover new audiences and discover new methods to showcase their abilities.

Even musicians who would possibly by no means have given severe thought to reside streaming a live performance have taken to the digital stage. And, there’s proof this may proceed. Take singer Dua Lipa, who broke paid livestreaming information with 2020’s Studio 2054 live performance. Initially mentioned to be reluctant, Dua Lipa determined to go the livestream route after being compelled to postpone an album tour. This turned out to be a superb name: Her digital look drew greater than 5 million views globally.

A survey from Middlesex University and funded by the UK Economic and Social Research Council confirmed that some 90% of musicians and 92% of followers imagine livestreaming would stay an efficient option to attain followers unwilling or unable to journey to venues in the post-pandemic world. Providers ought to take observe: The examine additionally discovered that audiences don’t anticipate free entry to reside music and should not notably discouraged by paywalls.

The rise in inventive vitality has impressed the developer neighborhood as properly. New area of interest streaming platforms have grown up, helped by the emergence of low-cost decentralized infrastructure that enables software builders to encode video, retailer knowledge and deal with identification with out having to pay costly centralized cloud suppliers for such companies.

Related: Music in the Metaverse creates social and immersive experiences for customers

These centralized suppliers will more and more discover themselves on the defensive. Two attention-grabbing incidents in 2021 are illustrative: Hackers attacked Twitch and launched personal details about its code and its customers to the world. And, Facebook suffered colossal reputational injury from a prolonged outage and whistleblower claims that its administration has repeatedly chosen to prioritize revenue over security.

What do you eat next?
Big Tech’s woes and pandemic-related restrictions have sped up elementary adjustments already underway in how the world produces, consumes and makes use of video content material — adjustments more likely to propel progress in the creator economy properly into the future. And, given the growing availability of low-cost decentralized blockchain infrastructure, these rising gamers have a shot at mounting a severe problem to the FAANG-run streaming suppliers.

There are 5 ways in which blockchain will hasten progress in the creator economy, and assist cement it as a central power in worldwide tradition and leisure:

exclusivity: Nonfungible token- (NFT-) gated entry and NFT ticketing are solely two of the decentralized instruments that enhance the digital expertise for event-goers: NFT tickets curb scalping whereas giving attendees a novel memento, all whereas token gating helps distinctive experiences for followers corresponding to entry to personal teams and direct messaging with creators.

fan possession: The Web3 period is outlined by the shift from extracting worth from renters to accreting worth to house owners. Just as the blockchain allows followers to have interaction instantly with their favourite creators, it presents a pathway to asset possession in particular person creator economies exterior of conventional centralized platforms.

low-cost streaming: Video streaming accounts for greater than 80% of Web2 web visitors and counting. Developers, wanting to seize a bit of this market with out being crushed by excessive prices, are more and more in search of blockchain-based inexpensive infrastructure to assist creator streams. With their new means to attract international audiences by means of on-demand access-anywhere streams, creators are turning to uniquely Web3 options corresponding to tipping, paid entry and reside procuring to monetize their content material.

Immersive interactivity: The one-way nature of Web2 publishing is already giving option to immersive interactivity that rewards customers for participation. With the means to report immutably and securely on the blockchain, creators can incentivize interactions with out sacrificing privateness.

area of interest down: While Web2 was constructed to scale up, Web3 is constructed to truly down. With its decrease price, elevated safety and resistance to censorship, the blockchain makes it potential to construct micro-communities serving smaller niches than can be economically viable in Web2. That’s a elementary shift that not solely places creators in management but additionally makes communities much less interesting to attention-seeking trolls.

The stage has been set for a blossoming of inventive exercise, and these poised to take will probably be assisted by decentralized infrastructure.

Related: The Metaverse will change the reside music expertise, however will it’s decentralized?

Digital creatives have at all times acknowledged that they should be nimble to succeed. Now, there’s a know-how that can empower them and their analog friends to succeed in new audiences on their very own phrases with out having to cede energy or revenue to tech behemoths like Google and Amazon.

My religion in the means of musicians, avid gamers, influencers and creators to adapt to the new realities to come back — and to thrive in them — has by no means been stronger.

The creator economy? The clue’s in the title.

This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.

The views, ideas and opinions expressed listed below are the creator’s alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.

Doug Petkanics is a co-founder at Livepeer, the place the group is constructing a decentralized reside video broadcast platform to allow the next technology of video streaming. Prior to Livepeer, Doug was co-founder and CEO of Wildcard, a cell browser. He additionally co-founded Hyperpublic, which was acquired by Groupon. He was the VP of Engineering at each.