There is a concept that needs addressing since, in my view, this is crucial for the understanding of Web 3.0.
A lot of this can be illustrated by looking at the world of entertainment and, the media, in particular. It shows exactly what is taking place and how Web 3.0 can solve this. We have a problem that is being discussed in every board room, especially within those industries tied to what was just mentioned.
However, Web 3.0 goes far beyond this. Here is were, I believe, the concept of the network-state enters.
Before getting into the solution, it is best to describe the problem.
What is fragmentation?
In this instance, we are referring to the dilution of users or customers due to options. When people have choices, they are going to make different decisions.
If we look at the media and broadcast world, there are two factors that are really feeding into the fragmentation:
These two factors are potentially being joined by the advancement of artificial intelligence which appears to be radically altering the content creation realm.
No longer are we limited to getting our information and entertainment from a few major broadcast networks. Over the last 30 years, this has moves in the direction of decentralization. For decades, there was the nightly news. Then we got the cable news channels, moving, in the United States, the number from 3 to 6.
The Internet brought us bloggers which then provided competition for the print media outlets. As social media took hold, vloggers provided the same alternative for video.
As stated, this frames a problem that Web 3.0, especially Hive, can solve.
In the past, we discussed how networks are going to be abundant. This means that dedication or loyalty is the scarce resource.
Here is where things change completely.
If we look at any single industry, the concept of fragmentation is going to expand. With news, for example, each new platform could offer its own service there. How does that work in a world of dozens of public networks?
The key is to no look at any single industry. Instead, we are dealing with the totality of the situation.
A network-state will have an economy developing. This means an assortment of players offering different products and services into the marketplace.
This is a key point.
The network becomes the solution to fragmentation when the offerings are such that people turn to it in an effort to get the needs met.
In other words, we have a variety of industries covered. The network provides people with information, news, entertainment, shopping, finance, investments, and income opportunities. It is through this that defragmentation occurs.
Certainly, there could be a variety of choices within any one sector.
Let us look at Web 3.0 broadcast. Not all channels are going to cover the same topics. Some might end up competing against each other, offering alternative viewpoints in an effort to cater to a particular audience. In this regard, we are dealing with a similar structure as we presently have.
The difference is we have a build in target market. Platforms or businesses are not focusing upon the entire Internet in general. On the contrary, they are looking to cater to the "citizens" of the network-state.
Information and entertainment are mostly digital offerings these days. This is the easiest point to grasp.
With a network like Hive, it could be the starting point. When the users of the different platforms find these needs filled, that are already contributing to the economy, in whatever form that takes. After that, it is likely they will seek ways to fill other needs. Perhaps shopping could then be offered. Here we have people getting products they needs.
From here, we can look into financial endeavors. This could emerge through offering investment or funding services, things typically controlled by the banking and Wall Street system.
This is the multi-trillion question.
Web 2.0 is so dominant simply because the services are being offered. This is where the head start really helps. Of course, this is not forever.
One could say the physical world has a huge jump on the digital. A few decades back, all shopping was done in person (or by mail order). Media studios were set up, churning out entertainment and news content. Investment advisors and insurance offices were on every street corner.
Today, these services along with dozens of others are available online.
The transition to a Web 3.0 ecosystem such as Hive will necessitate offering the services that people use. After all, there is a major leak in the boat if people show up and have to then run over to Twitter or Facebook for their news and information.
It is the present reality that we see.
Nevertheless, this is something that can be addressed. If teams start to focus upon offering services that people utilize, we then can see the attention economy gaining steam. It all starts with where the eyeballs are going. The existing digital platforms are experts at this. Amazon is one of the leading players, setting off a Flywheel Effect that could be unmatched. They only keep adding to their lineup of offerings, many under the Amazon Prime membership program.
Nobody would call that company just an online bookstore. In fact, they are far beyond just a retailer.
The unique structure of Web 3.0 is what separates it from all else.
We see a reversal of fragmentation simply due to the fact that people have stake in what they are utilizing. This is a radical concept.
Those who have token in a platform are willing to use other alternatives within the ecosystem even if they have no direct holdings. The reason for this is because it helps the ecosystem (network), something they might have stake in. Nevertheless, even without, the network effect generated helps the platform that one has tokens in.
These cannot be separated.
It is why something like Hive could end up solving the fragmentation problem. Once people start to realize this, it is game over for the traditional entities. Some of them are trying to combat the tide with income. What they cannot offer is equity.
What is missing, at this point, is services. Once Web 3.0 starts to address this, we will see a rapid shift.
