- Sriram Krishnan, an executive at venture capital firm Andreessen Horowitz, underscores Web3’s potential in rectifying issues inherent in Web2-based social platforms.
- The idea of delayed financial incentives in new social platforms could encourage genuine community building and interaction.
A senior figure from Andreessen Horowitz (a16z), a prestigious venture capital company, posits that Web3 can bring about groundbreaking solutions to longstanding issues plaguing Web2-based social media platforms.
Speaking at the Ethereum Community Conference (EthCC), a16z partner Sriram Krishnan delivered a keynote address outlining the potential of Web3 in reforming social media and consumer applications.
Web3 as the Cure for Stagnant Social Media
Krishnan lamented that
“the world of social media is stuck in a different era, and things need to change.”
In his presentation, the executive strived to persuade his audience that
“now is the moment to build large-scale crypto consumer social media marketplace applications.”
Krishnan, an industry veteran who has worked with leading social media giants such as Meta and Twitter, drew attention to the problematic mechanisms that characterize modern social media platforms. One of the primary issues, according to Krishnan, is the confinement of followers to a single platform, leaving users unable to carry their audience with them when they decide to switch platforms.
Furthermore, social media platforms offer limited to no application programming interface support and minimal economic rewards for creators. In addition, they do not provide their users and creators a say in platform governance.
Krishnan believes that Web3 social platforms could bring about refreshing alternatives to these problems. Strategies include catering to underserved communities and prominent individuals overlooked by existing platforms, and a deliberate avoidance of immediate financial incentives.
In contrast to popular methods of pitching Web3 as a means for creators to earn more, Krishnan argues that delaying financial incentives could foster more substantial adoption. He says that introducing monetary factors into social dynamics could complicate the inherently complex human interactions that social media hosts. As such, Krishnan proposes an initial focus on fostering community engagement and enjoyment rather than monetary benefits.
That said, he does not reject the concept of financial mechanisms in their entirety. Krishnan contends that once a platform is established, crypto projects can effectively incorporate creator economics and distribute governance stakes to platform users. This, he believes, can facilitate a more democratic and equitable social media ecosystem, one where the power of Web3 is harnessed to its full potential.
