Shift from Attention Economy to Digital Currency - Transition to Web3

By AX17 | figurehowtowrite | 27 Nov 2023

I find fascinating the idea of a new type of social media where people are motivated financially to interact, post, comment and bring quality content.

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The incentivization integration in societal systems is not new - it was done long time before: like during Renaissance Courts sponsorships, Medieval guilds, during the Prohibition, Industrial Revolution.

But in modern times, specifically on the Internet I perceive it as a novel practice in the digital space. Especially now with the potential to construct these spaces using blockchain technology. They hold a strong possibility of evolving into an independent economy, a uniqueness in history, it seems to me. The inception of tokenized social media is already underway, with numerous platforms built on web3 aiming to encourage people to create, interact, and collaborate - all while being rewarded for their efforts. For example - I refer to Tangled and Publish0x, my two most favorite so far - maybe due to their transparent simplicity and ease of use.

my Tangled profile

The transformation and shift in how we use social media are occurring right before our eyes. Prior to web3, the primary focus of social media was to capture people's attention and/or data and generate profits from it. The buying and selling of attention were prevalent everywhere and continue to persist even now as a transition to something more innovative takes place.

Before delving into the visions of a New Social Media World, it's essential to acknowledge that I may have overly optimistic expectations. We might not be there yet, but there's a noticeable change happening. Have you observed the recent silence on various social media platforms? When was the last time you engaged, used, or posted on Facebook or YouTube? Have your friends been active on Facebook lately? It might just be me, but there seems to be a quietness on these traditional social media platforms. While we can attribute this to the current economic challenges, layoffs, and overworked individuals, I believe something more significant is also unfolding.

People may have grown tired of expending their resources, data, and attention, or perhaps a transformative change is underway. Regardless, times are changing, but I maintain that people, at their core, remain fundamentally the same as from the moment of conception. Basic human needs for love, shelter, and interaction persist; we still crave connection and socialization. The internet adeptly attended to this basic human need for social interaction, as a strong desire to connect will endure as long as humans exist. Be it digital, or real.

However, what the internet has done thus far is provide us with a space to interact and collaborate, and in return for using that space, a price must be paid. Utilizing digital space, much like real-life space, is not free, and everything in life comes at a cost. We may not realize that being online also has a price, and the payment is extracted from the digital realm. The internet has been one of the most significant developments in recent history and is poised to become even more remarkable.

In real life, everything comes with a price, except for the best things that are free, such as hugs, kisses, unconditional love, and meaningful conversations. Whether it's buying land, grandparents, or renting a friend, everything has a price commensurate with its value. However, what was the price on the internet? Before asking about the price, it's crucial to inquire about the currency in which the price was paid. Did you use golden coins, paper money, PayPal, or send a check via postal services or bank transfer? How do transactions occur on the internet?

No one knows, and no one asks; there's a prevailing assumption that being on the internet is free. However, it was not free; everything has a price, and in the case of internet use, we paid with our data and attention. Currently, data and attention are being traded at all-time highs on traditional web platforms (evidenced by the fees for ad-free services on platforms like Facebook and YouTube).

Nevertheless, this bubble is on the verge of bursting. My intuition suggests that, like all bubbles, it will break at its all-time high, when it's at its peak. Advertising won't disappear; it will undergo transformation.

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people interacting on Tangled social media in 2023 and being payed on the digital currency Millix

Returning to the buying and selling dynamics on the internet, we witnessed data and attention being bought and sold. The currency used? No one knows. It's an inefficient form of exchange where some parties benefit (brands, influencers), while the actual sellers of data/ad preferences/attention (internet users) receive nothing. There's no understanding of balance; it's merely assumed to be normal. Yet, something is missing—the currency.

In traditional systems, we have fiat money, golden coins—something for making regulated exchanges. They might not be perfect, but at least there's a regulated medium of exchange with tracking and permission to use the currency, ensuring that something of value is exchanged for an equivalent value (e.g., paying paper money or coins for a loaf of bread).

What currency is most suitable for current digital exchanges of value? It has something to do with Bitcoin. Its proof of work is a unique means by which people can demonstrate their value and work on the internet, granting them permission to validly transact on the web3. The pursuit of attention and people's data is no longer profitable. Or sustainable on the long run.

Big companies now charge a fee for ad-free services because your data and attention are no longer lucrative. Why?

Perhaps it's because there are so many people on the planet that when one person stops exchanging their data and attention on the web, there are millions waiting in line to do it for free. This is my speculation, but it could also be expressed differently—no one values data and attention because these resources are currently abundant, perhaps even considered limitless. Data is generated every second, new individuals are born, and more energy with fresh attention is flowing into the internet. Monetizing these assets is simply no longer profitable.

However, introducing digital currency into the equation provides a medium of exchange within web3. With its limited, safe, and decentralized characteristics it becomes a unique type of currency especially suitable for the digital space. In exchange for value, there's no need to contend with your attention and provide data; all you have to offer is yourself. Your skills, output, and creativity are directly exchanged for currency on the web3. All you need to do is connect, interact, create, and get paid. Based on your output, you receive rewards, proving that your work in the digital space is what the internet has always been about. About consuming content (by reading, listening or viewing it) - creating and sharing content for the community (in any format, written, video, audio) - and simply getting rewarded for the work done.

What better currency to validate that work than the proof of work currency?

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