Agency Through Community: How Web3 is Producing Nextgen P2P Creative Economies & Cultural Marketplaces
The market has today become the dominant medium of culture, facilitating attention and capital allocation and influencing what we see, what we do, what we think and what we want. The creator economy is valued at $100 billion USD, and the burgeoning crypto art market is worth $2.3 billion USD. In a world of shifting power dynamics, new links are being developed inside of the new Web3 landscape, as supportive patrons and maverick experimentation by brands and creators alike are together finding agency through shared community, removing the rent seeking, gatekeeping and high commission structures that defined web2 for so long.
Linking consumers with producers using blockchain
With the advent of Web3 e-commerce, a direct link has been established between creators and consumers; we are now seeing businesses using blockchain in innovative ways, as brands are embracing disintermediary methods of reaching their target cultural markets, establishing shared languages, styles, and techniques, and developing mini-economies built on collective narratives.
Leveraging what is known as “market product fit”, the democratization of content and production of goods is finally possible via novel crypto-economic building blocks such as NFTs, social tokens and open-source blockchain protocols.
Digital disruption propelling wholly new business models
Digital wearables, AR try-on functionality, shoppable editorials, and limited edition NFTs are creating wholly new business models — digital-first disruption models that use blockchain as the trust-layer and likewise empower individuals and brands. The use of bonding curves and mechanism design — whereby the price of an asset changes according to supply and demand — was first exemplified by Unisocks, and more recently by fashion brands like Dulce & Gabbana, LVMH, Nike and others as they enter the metaverse.
Web3 e-commerce brings many advantages such as efficiency from easily gauging market interest, as well as offers new authentication measures provided by the distributed blockchain ledger. Benefits such as improved price discovery helps hinder price distortions. The prime advantage of what Web3 has wrought is evidenced in the benefits enjoyed by patrons, i.e. the community.
Web3 offers new, innovative marketplaces, and much more
Web3 allows for new means of co-creation and shared successes; royalties built into blockchain smart contracts highlight the exceptional value accruals that are now removing the middleman and empowering both the creator and the consumer in a multitude of ways.
Entering 2022, innovative, blockchain-based marketplaces are continuing to be built, buttressed by noncustodial transactions, social tokens and new arenas for trade such as LuxFi NFT Marketplace; together, these elements are quickly gathering momentum and in turn building the next generation of peer-to-peer, disintermediated cultural landscape that is Web3.
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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