The potential and pitfalls of web3 in journalism
Let’s explore what news organizations should be doing right now amidst web3 developments on emerging platforms
Web3 is the next phase of the internet, the internet plus a blockchain layer added to it. The internet is made up of many different protocols, and with Blockchain technology, we're able to add a digital asset layer.

This is very transformational since the financial industry lived in a separate space on the internet, so transaction money was a lot harder when compared to data. Now, we are able to transact money in the same way that we transact with information in a very global seamless, peer-to-peer way.

These networks allow anyone to join and participate, break down barriers, take away intermediaries, and ultimately allow for an internet that is hopefully more decentralized. Web3 is a new internet and 100% less evil. Today, web3 is people that are building practical applications for consumers with block space.

Blockspace is space on a blockchain that can be used to store information and run code.

The change is that with we're seeing energy, effort, resources, and talent flow into web3 projects because we're able to do more faster. If you are making a decision of building a business and reputation on the servers of a large tech giant or maybe within a large cloud service or can some of that data layer actually be pulled from a blockchain that would be public and available to all of us.

We’ve seen clones of Facebook, or adaptations - they struggle with a cold start problem of building an application to compete against Facebook.

This friction is reduced in a world where we work off a common set of information standards. The Facebook audience isn't interoperable, however, on the blockchain, we access a common data layer - allowing builders to innovate & deploy faster.
Making a transition from a centralized web to a decentralized environment.
Applications or protocols are organizations giving ownership to users. For e.g, you create a social profile on a decentralized platform, and you receive stock just for participating in the company. Even if it is very small but it gives you a say in the way the platform is run & how these applications in web3 us shaping up.

This is not just a promise, this is actually the way these protocols are behaving and interacting with their users. .e.g Uniswap, the largest decentralized organization distributed 400 tokens to all its wallets that transacted with the exchange.
This is a sensible model since brings in new users and makes them owners. This makes business sense because we create a more loyal user base and a community that's literally invested in your application. From an implementation standpoint, this is a delicate process. You start to create these economic systems and applications to introduce a token that is can be traded in the secondary market.

You need to consider what this token will be used for - the supply and demand of it. It's more than, distributing a coupon. When the token starts trading value, it can actually impact the company's own treasury.

Web3 creates users that are owners and blurs the line between the user and the creator ownership. Decentralized Autonomous Organizations (DAOs) are a great way to tap into the audience, a very knowledgeable group of people who are crypto natives, and leverage that knowledge to contribute and be a part of the organization itself.
web3 as a media company
When users are owners, your audience can also be creators. Thinking about tearing down the newsroom wall, and incorporating the audience into the content creation process. This can be done within editorial guidelines and brand standards. Achieving a balance of leveraging an audience, while also keeping journalism standards is the web3 approach.

Ownership as a model is new - governance, token supply, and demand, and NFT ownership are rewarded in web3, versus the web3 approach where users contribute because of passion and probably some credit involved.
How incentives align in web3 is very interesting, tapping into the same type of passion a token attached to that transaction.
Web3 is closer to what the initial pioneers of the internet had in mind, it's just that a distributed storage layer is now is available to the blockchain, which other people really build from. It opens different business models to creators & contributors that we didn't have before.

Uses cases include the ability to own tokens of media companies and benefit from the upside. It's common to NFT gated communities for artists, NFT gated discord channels, where you communicate with readers of your blog, or newsletter.

NFT projects that have been based on speculation, and lack a purpose do not last a crypto winter. It appears that NFTs are solutions looking for a problem.

Another use case is Gitcoin, where every quarter, there's a new season of Gitcoin grants, which allows people to donate funds to their favorite kind of open-source projects.

This offers a potential model for journalism. Specifically, investigative journalism as a public good has been underfunded, and people appreciate it.

It's good for society to have ambitious investigative journalism projects and crowdfunding for these initiatives.

Crowdfunding investigative journalism is a real viable business model for journalism, and for media companies. An important aspect of web3 is the value of ownership as a contributor & earned tokens from a news or media company.

Tokens can be accrued depending on levels of participation in the discord or news creation process.

If the aim is to build a decentralized business model, it's natural to assume that people who own more tokens get more power and influence decisions.
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