Content fuels the internet, inspiring engagement and attention across global websites and platforms. This attention is extremely valuable, but where does that value go?
The creators see some of this value, but currently most of it goes directly to the big tech platforms that publish it. This is why all brands and creators that generate content should see it as an asset that they own. Ownership of digital assets is made possible through tokenization, and blockchain technology facilitates this.
Tokenizing your content enables you as a creator to capture more of its value and even share that value with your audience. This paradigm shift rebalances the content ecosystem by empowering its participants instead of the intermediaries.
The Content Lifecycle
Content typically flows through three groups while moving from conception to consumption.
Throughout history, the value accrual has shifted, with each group benefiting from the content in various ways at different moments in time.
Prior to the mass adoption of the internet, It was most common for publishers to reap a majority of the rewards. These intermediaries chose whose content was published, and often negotiated for high percentages of content ownership in the process. Consumer interests and behaviors have always impacted the trajectory of content trends. However, everyone was at the mercy of the publisher whether it was a newspaper, a TV station, or a record label.
User-generated content drives engagement across the web, as the platforms provide a range of tools to create and distribute content. YouTube, Spotify, Medium, and other platforms make it possible for anyone to be a content creator, delivering more opportunities for visibility and success than ever before. While increased value is being retained by the creators, publishers and their platforms still control the distribution, payment and even production of content.
Future Internet (Web3)
Blockchain technology eliminates the centralization of power among the publishers and middle-men. Doing so provides creators with the necessary tools, while increasing their control of ownership. Blockchain and Web3 also introduce new forms of digital ownership to consumers. This model greatly reduces the extraction of attention and value from the most active participants in the content pipeline, the creators and consumers.
Benefits of Content Tokenization
Tokenized content is the direction that the internet is heading. The use cases are still being explored and standards being developed. As we head in this direction, several primary benefits are already becoming clear.
Content IP Ownership
Smart contracts are an incredible solution for transparent and immutable ownership and transfer of IP. The laws around this are still being explored, but the technology itself is ideal for proof of ownership. Being that NFTs are unique units of data stored on a digital ledger, there are a world of possibilities when creating or exchanging these digital assets. Whether licensing and assigning rights to publishers or fractionalizing ownership and IP for consumers, tokenizing content enables new ways to exercise ownership.
Funding Your Work
NFTs have opened the door to new ways of fundraising that can fuel new content while delivering value to the funders. The simplest path for this is an NFT sale, creating assets that contain perks and access for your audience. Incorporating IP and ownership, creators are selling NFTs that provide IP rights which have the potential to grow in value alongside the content’s success. Token-gated content is a great way to fund your work while providing access to those that contribute. Using tools like collab-land, creators can allow holders of their assets to access specific content in exchange for their support.
Community is central to Web3, as the underlying blockchain technology requires community to function and scale. Miners must reach a consensus on the validity of any given transaction, meaning communal collaboration is needed to run a blockchain network. This foundational element permeates the culture, as communities form around cryptocurrency and NFT projects. Tokenizing content and creating digital assets empowers the individuals and collectives that own and exchange these assets, no matter how niche. Tokenized access, governance and membership inspires engagement and community building around content.
The underlying infrastructure and tools needed to develop and deploy an NFT ecosystem around your brand’s content is easier than ever before. Liteflow empowers the next generation of Web3 businesses and content creators with non-custodial solutions to build and launch decentralized NFT marketplaces to mint, sell, and trade NFTs.
If you’re interested in learning more about tokenized content, NFTs and NFT marketplaces, subscribe to our blog and follow us on twitter at @liteflowcom