Web3 and blockchain technology: How digital asset ownership is flipping the current business model on its head
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With the implementation of blockchain technology and Web3, businesses and individuals alike are quickly seeing the value in what NFTs and digital asset ownership can offer their customers. Industries that have previously had to rely on outside distributors to reach their consumer base are now finding that challenge eliminated, as they utilize blockchain technology to bypass this step in the traditional business model.
Take a look at the literary industry, for example. Even large-scale novel collections such as Harry Potter took time to infiltrate the marketplace, going beyond book-selling and eventually encompassing consumer-facing products. What NFTs and Web3 do is allow individual creators to skip the middleman; taking on the role of distribution channel themselves and opening more jobs in-house.
Blockchain technology: Expanding art and creating jobs
This new model of vertical integration has afforded authors the opportunity to build a world-class team of diverse individuals that are compensated fairly and further incentivized based directly on the success of the project. As a BIPOC/LGBT creative, I am a prime example of the growing marketplace advantages that the metaverse offers historically marginalized voices.
The value and opportunity of independent artists leveraging Web3 have proven promising. It is made possible because of new revolutionary technology built on blockchain and smart contracts. Using Web3 to collaborate with and uplift other creators, I have been able to expand my art using technology that creates opportunities for job growth and bridges the gap between creator and consumer.
Bridging the gap between creator and consumer
One of the most challenging and risky facets of production and consumer marketplaces is the ROI (return on investment). Individual creators have to make the difficult decision of outsourcing their project, and hoping that there will be enough consumer interest to make a positive gross profit margin. This element of financial risk is minimized when a creator proves the value in their own project, putting themselves and their product on the radar of private global NFT collectives such as beetsDAO, that are looking to invest in the types of powerful stories that signal the next big project.
Digital assets and NFTs are bringing collectors and creators closer than ever after years of the internet and current business models creating a gap between the two. Consumers looking to immerse themselves in Lost Children of Andromeda, for example, now have the chance to own a piece of the IP, which is made possible solely with Web3 technologies.
The value of investments
“We are in a creative renaissance as important as the advent of digital media,” says Jordan Garbis, the cofounder of beetsDAO, one of the most prestigious Web3 creator collectives, “Creators can self-fund anything and earn from both initial sales and royalties from collectors trading on marketplaces.
Imagine fans having the opportunity to become a part of Harry Potter, the Marvel Universe or Star Wars, as they were first being launched 20, 40, or even 50 years ago, by collecting digital assets and trading with the community at large. This is now a reality for artists as they prove themselves to be pioneers in the Web3 sphere. Creators can now gain the value of higher levels of exposure, collaborative advantages, and more, and investors in this scenario are collectors: those first adopters who get a piece of a growing franchise before it hits the market. And as a bonus, they get to be part of the journey in an intimate and empowering way. Curating a diverse community of collectors, specifically those from marginalized groups, provides instant equity and even prosperity as the IP grows. This can be done by creating multiple entrance points for potential collectors. Read-to-earn may be a model worth exploring for other literature properties as NFT utility becomes a part of the larger conversation.
As creators and artists begin to see the merit of blockchain technologies and what Web3 can offer both them and their consumers, the marketplace is going to shift immensely as the traditional business model changes before our eyes. Digital asset ownership is just another aspect of the metaverse that is proving to be an advantage for numerous industries and businesses. Creators are now setting the precedent for what the metaverse can offer both the average consumer and the artists looking to take their project to the next level.
Jason Primrose is a pioneer in speculative fiction, most notably for his multimedia series, Lost Children of Andromeda.
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