The rapid rise of cryptocurrency has caused the digital currency market to explode across all industries. Especially the social media industry. In fact, it may be the solution for many content creators. Who struggle with a steady income soley through socia media. Not only do platforms receive a large cut of creator revenue. but influencers can often feel restricted to creating content suitable for advertisers. However, various blockchain technologies and crypto are becoming a more common alternative. Rather than solely relying on social media companies.
Cryptocurrency vs Blockchains
Blockchains and cryptocurrency are not too different. However they’re not the same things. Blockchains are digital ledgers. Computerized databases, that record and store transactions within a computer network. By using files called “blocks.” Once each block has reached its maximum storage capacity. It is irreversibly linked to the previous blocks. Where it will form a blockchain. This ensures that the data is immutable. This means that it is impossible to alter or destroy. Although blockchains can store a variety of information. Transactions pit are mostly used for transactions involving cryptocurrency.
Cryptocurrency, otherwise known as crypto, is digital money. Which can be used to buy goods and services. Almost anything from cars to insurance. These purchases are achieved by transferring crypto through trading platforms or digital debit cards. This allows people to use currency that isn’t backed by central banks. They can also trade globally without currency exchanges. Most cryptocurrencies like Bitcoin, Litecoin, and Ethereum use blockchains to record transactions. Likewise to “coin” trades. Its safe and is done in a secure manner. The permanence of blockchain makes it difficult for others to hack or steal your money.
How Creators Can Benefit
Creators can earn a big amount of income through social media platforms. Although only a small portion of advertising revenue goes to the creators themselves. Unless you have a significant following and are able to establish deals with the brands and platforms. Otherwise, much of the money is occupied by these media giants.
Blockchain technology can decentralize the process of paying creators. Instead of requiring a social media middleman. who tends to receive a majority of revenue. creators can now be paid directly. platforms such as Flixxo or Wildspark utilize blockchain technology to permit transactions from the creators and their audience. They not only eliminate the need for social media platforms, but also grant creators more control. They have a say so on how their content is consumed and presented. This will never be a problem for influencers. since they can create content they’re passionate about while still ensuring monetization.
Social Media Joins In
Platforms are applying their own cryptocurrency payment methods. Although the main benefit of blockchains is its removal of intermediaries. For example, Twitter has a crypto tipping feature. Its called Tips, and users do so by using Bitcoins. Strike, a Bitcoin Lightning Network platform, lets users pay creators internationally for their content.
Many apps have also started offering nonfungible tokens (NFTs). Which are unique and non exchangeable digital units. For example, Audius, a music streaming platform. Has recently launched a feature allowing users to embed NFTs on Twitter and Discord.
Platforms are even beginning to form their own digital tokens. Last month, Patreon teased the idea of “creator coins.” Not only would this benefit creators but also patrons. who will be able to receive profit. Essentially, creator coins can enable users to invest in their favorite creators. Therefore, if a creator becomes popular. Their fans who purchased coins for them also reap rewards. Patreon does not have a crypto team nor permits direct payment to creators via tokens. They have revealed interest in changing their policy during the 2021 Creator Economy Summit.
Crypto’s Energy
“I think for us, really thinking through how we’re continuing to ensure we’re creating a sustainable recurring future for creators is why we’re evaluating the crypto space more broadly,” Ceo Jack Conte said.
Some critics are less excited by the thought of crypto becoming more common. This is due to the environmental costs. Crypto’s energy consumption is high. Each Bitcoin transaction uses over 1,100 kw hours of electricity. That’s almost twice the monthly amount to power the average American house. Despite this, many argue that the positives outweigh the costs.
“What I will say about crypto and NFTs in general is I really love the idea of creators owning their media and owning their content,” Conte said. “I love the idea of creators having leverage and control. I love the idea of creators owning their audience data instead of platforms.”
Feature photo by André François McKenzie on Unsplash
