The entire paradigm that we operate under is changing. This means that everything related to what we do is shifting.
We spent some time discussing the idea of a network-state, how networks will become abundant, and what is going to be scarce in the future. All of this means a new approach to business.
Fortunately, much of the world has not caught up. That means we can leverage what is already in operation, i.e. Web 2.0, while developing the new concept. There is also time to prepare for what is coming in the future.
In this article we are going to dissect how the thinking is already changing and provide analogies to further clarify the concept.
Community Driven
We hear a lot about community but what does this really mean? Is this really something novel?
The answer is no, community is nothing new. However, when applying it to the digital world, we see a new paradigm emerge.
When we were residing exclusively in the physical world, community meant something. It was the local area that we were in, encompassing all the people and businesses there. If the community required something that was not provided, someone stepped in to fill the void. This was especially true in the early days.
Choice was not a major part of the equation. There were few stores, complimenting rather than competing with each other. People supported each other financially because, quite frankly, they had no choice. If there was one blacksmith in town, guess who you used.
This changed greatly with the corporation. As communication systems advanced, ideas spread meaning business followed suit. We saw how this altered things, a move that was enhanced by the advent of the Internet. Suddenly, we were dealing with instant globalization as anyone around the world could log on.
In the end, community went out the door.
Platforms Provide The Customers
One change was the quest for customers. As competition entered, companies started to market and use other tactics to draw people to their goods and services. Since there was no longer a community, people were free to engage with whatever companies desired. Naturally, some choices were limited especially if they were physical. Anything that operated digitally, including the sales process, offered near infinite options.
This is changing again. Here is where the first analogy enters.
As networks become abundant, we are going to see a return to the mindset of the days of yore. Unlike then, people will still have options. However, the difference is that financial support will comes out of loyalty.
Community is volunteering to be loyal to a platform. This means that we are now dealing with the new scarcity in the digital world. Those systems that can maintain the loyalty of the users will be able to offer a wide array of goods and services. The result is opening up opportunities to those who are building.
The key is that people will not have to look for customers. A built in community will provide that instantly.
Here is where the new paradigm enters.
Web 3
The foundation of Web3 is based upon this idea. We are truly dealing with the attention economy. That means platforms require incentivization mechanisms to ensure that loyalty. This can come in many different forms and is not just relegated to monetary compensation. People have a multitude of values and needs they want met. It is going to vary with each person.
Individuals are going to choose what is best for them. This is why the concept of the network-state is so powerful. Under our present system, your geographic location determines most of your plight in life. It is basically a roll of the dice.
If you were born on a particular piece of land, there is a governance, monetary, and business system all in place for you. The choice is removed. You belong to that territory.
All of that changes with the digital world. Web3 places ownership on nobody. Now we are dealing with volunteerism. People are free to select the network they prefer. When you consider it, this is a radical shift from Web 2.0.
Sure you have the choice to switch] from X to Facebook, but do you really. What happens to all those you engage with on X? What if they do not utilize Instagram?
The point is that we recreated a similar system in the digital realm. We have a few platforms that control most of the content, engagement, and traffic. I use the word control because that is what they do. It is their party.
Web3 changes all this. Since account ownership is at the core, we see a new approach. The networks do not control the individuals or the content posted. Here is where the power structure adjusts.
Business Building
Which brings us to the final point of this article: business building.
We tend to be hindered by what we know. By this I am referring to reference points. The tendency is for humans, when encountering something new, to apply what is already known. This is how we save time and size up situations.
Since we are referring to business, the main idea is competition. That is the approach we see all over the place. It is evident when a new application is touted. Suddenly, people are writing about how it will kill another network. Again, this is the old paradigm.
Instead of jumping to this conclusion, why not try to identify the community? If this is where the future power resides in a networked world, why are people fretting about something thrown out there?
In isolation, what is being offered? Going back to our analogy, if our little physical community had all that was needed, what threat is a new saloon opening up 100 miles away? Will it destroy our local saloon?
The answer is no. If one travels to that saloon, what happens when food is needed. Nobody selling chickens or eggs there. Where is one going to sleep? No hotels. What about if a new horseshow is required? We know the answer.
Bringing this back, we are seeing how interconnectivity is now shifting. Nothing operates in isolation. If one is building something that is standalone, it is apt to fail. Community is not a single person deal.
Of course, the belief is that it will just draw people from other communities. Here is where the old thinking is entering. That is only possible if people are not having their needs met elsewhere. Remember, loyalty is the scarcity in a world where networks are going to be abundant.
What is generating loyalty among the network users where this new application is? More importantly, what kind of loyalty is there?
A business built upon a bunch of people who are simply looking for green candles and the price to moon is not a solid foundation. This is the mistake I think most are making. To look at some of the leading platforms and believe there is loyalty is misguided. What we are really looking at is nothing more than the Wall Street mindset. They are loyal to whatever makes them money in the moment. The instance something stops doing that, it is dumped.
That is fine since that is the game. However, it is a mistake to think that is what Web3 is about. Therefore, we have to drill down to see what we are truly dealing with. Is loyalty truly there or is it simply because people are promoting the network simply to try and get the price to move higher?
Having this answer to this question will tell us a great deal. We are now entering the world of networks. It is early. That said, business building is now entering a new phase.
Those who are applying this concept are early to the game. For that reason, I think they will benefit greatly.