The best is yet to come: What’s next for blockchain and the creator economy

After two years and many COVID-19 restrictions finally easing, the world is welcoming the return of in-person theatre, movies, comedy, music and sports. This has left some wondering what will happen to the legions of digital creatives who occupied and entertained us while normal life was at a standstill, and the multi-billion dollar economy they inhabit.

Will the world forget the platforms and artists they discovered during the pandemic now that the doors of festivals, fashion shows and concerts are once again open for them? Is the creative economy, which recent estimates suggest exceed $100 billion this year strong enough to withstand a stampede back to real-life experiences?

I firmly believe that it is. Government-imposed restrictions may have accelerated the pace of change, but the transformative trends in streaming video we witnessed during the pandemic were nascent before and would have taken hold anyway.

And while I pretend not to have a deep background in macroeconomics, I am a technologist who has spent the last few years working on one of the most transformative new technologies to emerge in decades: blockchain. This is the technology that will completely reshape digital life, boosting the creator economy in the process.

Related: Decentralization revolutionizes the creator economy, but what will it bring?

Playing on a digital stage

The forced slowdown has given many artists the time and drive to experiment in the digital sphere, find new audiences, and explore new ways to showcase their talents.

Even musicians who may never have seriously thought about broadcasting a concert live have moved onto the digital stage. And there is evidence that this will continue. Take for example the singer Dua Lipa, who bankrupt paid live streaming records with the 2020 Studio 2054 concert. Initially said to be reluctant, Dua Lipa decided to go the live streaming route after being forced to postpone an album tour. This turned out to be a good decision: her digital appearance attracted more than five million views worldwide.

A survey by Middlesex University and funded by the UK Economic and Social Research Council He showed that around 90% of musicians and 92% of fans believe live streaming would still be an effective way to reach fans who are unwilling or unable to travel to places in the post-pandemic world. Providers should take note: The study also found that audiences don't expect free access to live music and aren't particularly put off by paywalls.

The surge in creative energy has also inspired the developer community. New niche streaming platforms have emerged, aided by the emergence of low-cost, decentralized infrastructure that allows app developers to encode video, store data, and manage identity without paying expensive centralized cloud providers for such services.

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

These centralized providers will find themselves increasingly on the defensive. Two incidents that drew attention in 2021 are illustrative: hackers attacked Twitch and released private information about its code and users to the world. And, Facebook suffered colossal reputational damage from a prolonged outage and whistleblowers claim that its management has repeatedly chosen to prioritize profit over security.

What comes next?

Big Tech woes and pandemic-related restrictions have accelerated fundamental changes already underway in the way the world produces, consumes and uses video content, changes that are likely to drive growth in the creator economy. in the future. And, given the increasing availability of low-cost decentralized blockchain infrastructure, these emerging players have the opportunity to present a serious challenge to FAANG-managed streaming providers.

There are five ways that blockchain will accelerate growth in the creator economy and help cement it as a central force in culture and entertainment around the world:

Exclusiveness: Non-fungible token (NFT-) controlled access and NFT ticketing are just two of the decentralized tools enhancing the digital experience for event attendees – NFT tickets curb scalping while giving attendees a unique keepsake , all while token gateing supports unique fan experiences like access to private groups and direct messaging with creators.

fan owned: The Web3 era is defined by the shift from extracting value from tenants to accumulating value for owners. Just as blockchain allows fans to interact directly with their favorite creators, it offers a path to asset ownership in individual creator economies outside of traditional centralized platforms.

low cost transmission: Streaming video accounts for over 80% of Web2 Internet traffic and growing. Developers, eager to grab a piece of this market without being crushed by high costs, are increasingly looking for affordable blockchain-based infrastructure to support creator streams. With its new ability to engage global audiences through on-demand access streams from anywhere, creators are turning to unique Web3 features like tipping, paid entry and live shopping to monetize their content.

Immersive interactivity: The one-way nature of Web2 publishing is already giving way to immersive interactivity that rewards users for their participation. With the ability to record immutably and securely on the blockchain, creators can incentivize interactions without sacrificing privacy.

niche below: While Web2 was built to scale, Web3 was built to narrow the niche. With its lower cost, higher security, and resistance to censorship, blockchain allows for the creation of micro-communities that serve smaller niches than would be economically viable on Web2. That's a fundamental change that not only puts creators in control, but also makes communities less attractive to trolls looking for attention.

The stage has been set for a flourishing of creative activity, and those who are prepared to take it on will be assisted by a decentralized infrastructure.

Related: The Metaverse will change the live music experience, but will it be decentralized?

Digital creatives have always recognized that they must be agile to be successful. Now, there is technology that will allow them and their analog peers to reach new audiences on their own terms without having to cede power or profits to tech giants like Google and Amazon.

My faith in the ability of musicians, gamers, influencers and creators to adapt to, and thrive in, the new realities to come has never been stronger.

The economy of the creator? The clue is in the name.

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The views, thoughts, and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.