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Web 3.0 Key: Adopting The Platform Business Model by taskmaster4450

View this thread on: hive.blogpeakd.comecency.com
· @taskmaster4450 ·
$21.10
Web 3.0 Key: Adopting The Platform Business Model
Why hasn't [Web 3.0](https://inleo.io/@leoglossary/leoglossary-web-3-0) taken off?


The answer, to me, lies in the lack of adoption of the basic platform model.  When we look at what is built, it is rather disappointing.


Over the last [year](https://inleo.io/@leoglossary/leoglossary-year), we have discussed how there is a lack of services provided in Web 3.0.  People want to [market](https://inleo.io/@leoglossary/leoglossary-market) and discuss their favorite Web 3.0 [blockchain](https://inleo.io/@leoglossary/blockchain) yet the reality is we see little offered.


Here is where the concept of the platform [business model](https://inleo.io/@leoglossary/leoglossary-business-model) enters.  This is nothing new since it was used to perfection by a number of [Web 2.0](https://inleo.io/@leoglossary/leoglossary-web-2-0) [companies](https://inleo.io/@leoglossary/leoglossary-company-business).  In fact, most of the success we see in the technological [world](https://inleo.io/@leoglossary/leoglossary-world) can be attributed to this.


# Web 3.0 Needs To Adopt The Platform Business Model.


When looking at what is taking place, how much has really changed?


Think about it from this perspective: what do you do on Web 3.0 [applications](https://inleo.io/@leoglossary/leoglossary-application) today as compared to a few years ago?


Consider [PeakD](https://inleo.io/@leoglossary/leoglossary-peakd-hive) on the Hive [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem-digital).  What does that application offer?  It allows people to blog in the blockchain, similar to Medium or Substack.  Naturally, there are [features](https://inleo.io/@leoglossary/leoglossary-feature) of the network integrated, such as financial and [social media](https://inleo.io/@leoglossary/leoglossary-social-media) [transactions](https://inleo.io/@leoglossary/leoglossary-transaction).


That said, how is this different from a few years ago?  The answer is nothing really changed.


Here we are looking at the fatal flaw of Web 3.0.


The rhetoric is that new users are required.  This single belief is what is hindering any realistic adoption of Web 3.0.


##  Digital Platforms


What is a [digital](https://inleo.io/@leoglossary/leoglossary-digital) platform?


In simple [terms](https://inleo.io/@leoglossary/leoglossary-term), it is [infrastructure](https://inleo.io/@leoglossary/leoglossary-infrastructure-computer) where interactions can happen. 


That is the main premise.  Obviously, the more users that a platform has, the greater the number of interactions.  This is where the masses [buy](https://inleo.io/@leoglossary/leoglossary-buy) into the need for more users.


Any digital platform taking this approach is doomed to either stagnate or fail.  If [Facebook](https://inleo.io/@leoglossary/leoglossary-facebook) was the same today as 2004, Zuckerberg would be doing something different.


Therefore, when we look at the platform model, it centers around the interaction between core participants.  This means the goal is to increase not only the quality of the interactions, but the quantity.


This is what derives the value.


To show it in graphical form:


<center> https://img.inleo.io/DQmTZrQz48ciCMjjR55zorog16HJbzriyuECT5XotdQRTrx/platform%20biz%20model.png </center>


What is missing is how platforms affect interactions.


## The Lesson Of LinkedIn


Most of us are familiar with [LinkedIn](https://inleo.io/@leoglossary/leoglossary-linkedin).  


This is a prime example of the platform business model was applied.  It was a move that generated billions of dollars in value.


What was the progression that LinkedIn went through?


It started as a place where [professionals](https://inleo.io/@leoglossary/leoglossary-professional) could connect with each other.  This was the first premise up which the platform was built.  Interactions were increased by having the service connect to outside applications such as Outlook.


If the [story](https://inleo.io/@leoglossary/leoglossary-story) ended here, LinkedIn might have died.  Here is where the next layer entered.


LinkedIn had a lot of [data](https://inleo.io/@leoglossary/leoglossary-data).  This allowed it to start bringing recruiters and [job](https://inleo.io/@leoglossary/leoglossary-job) seekers together.  It was also what enabled for the [monetization](https://inleo.io/@leoglossary/leoglossary-monetization) on the platform.


Instead of just offering connections, LinkedIn built a service.  It allowed the people with jobs available to engage with those looking for employment.  For this service, LinkedIn made some [money](https://inleo.io/@leoglossary/leoglossary-money).


The next move was to allow anyone on the platform to publish content.  With so many professionals, there was likely to be a great deal of expertise shared.  Of course, from the platform perspective, this brought publishers and readers together.


What is of paramount importance is each addition brought in new people.  It also offered more interaction among those who were already on the platform.


Going back to the earlier example, Web 3.0 applications are akin to the LinkedIn allowing professionals to connect.  Nothing has moved beyond that.


And people wonder why Web 3.0 is stagnant.  The absence of multi-stakeholder interaction is glaring.


## Responsibility


The advantage to a platform business as compared to a traditional one comes in the access to resources.


With a traditional entity, the internal [assets](https://inleo.io/@leoglossary/leoglossary-asset) are utilized to grow the business.  This is not the case with platform businesses.  Instead, the shift is from internal to [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem) assets.  The resources available are supplied by all who are engaged with the platform.


LinkedIn simply offered the service to bring recruiters and seekers together.  The jobs were not provided by LinkedIn nor did they scour the classifieds to see what was available.  It left this up to those who were responsible with filling vacancies.


As this occurred, the value of the entire platform grew.


With Web 3.0, we run into a different ownership mechanism.  Here is where the burden shifts to those who are stakeholders, specifically those with financial stake.


The asset of the ecosystem are crucial.  Again, the goal is to increase the quality and quantity of the transactions taking place.  This means more than just adding additional users.  In fact, without the evolution described, users will not stick around.


Therefore, we see the responsibility expanded.  The platform [owners](https://inleo.io/@leoglossary/leoglossary-owner-insurance) are the ones responsible for this.  With Web   3.0, this gets a bit convoluted.


Here we see the platform that is part of a larger ecosystem (blockchain).  [Tokenization](https://inleo.io/@leoglossary/leoglossary-tokenization) means people have financial interests at different layers.  Ultimately, they are the ones responsible.


It is where an ownership mindset enters.


Certainly, features on the platform are required.  This is the responsibility of the development team.  However, there is a lot more to [network](https://inleo.io/@leoglossary/leoglossary-network) theory outside of this.  Here is where the prosumers have a third leg: [equity](https://inleo.io/@leoglossary/leoglossary-equity) holder.


The key is to drive more interactions.  The layers piled on top come from a combination of features along with innovation.  Under this scenario, the features become tools.


Until this is done, Web 3.0 is going to continue to lag.  It appears few have grasped the business model concept.  Instead, the idea is to throw out an application and be done with it.


Hopefully people will start to realize what is at stake.


____


<center> [What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive) </center>


Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/web-30-key-adopting-the-platform-business-model)
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@alonicus ·
$0.18
Brilliant post, and thoroughly thought provoking.

I started to write a comment, but it turned into a monster of an essay, so I hope you don't mind if I made it it's own post.... I made sure to link back to this post, since it's what inspired me to start writing  😀 
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@anderssinho ·
$0.22
So just curoius, if you were at a management position on Peakd, what services would you argue that you should pursue in order to grow the business?

What other platform here on Hive do you see miss this narrative?

With this article in mind I have a feeling you enjoy the direction Leo is working towards, despite you might not agree with all decision.
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@taskmaster4450le ·
Gamification. Polls (which were added).  Video. Audio.  News feeds.  Price quotes.  Commerce. 

With AI, the possibilities explode:

image generation, text to video, search, chatbot

These are just off the top of my head.
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@daniasi ·
$0.18
Business opportunities is what thrive platform, if web3 don't build apps that interest big business we may just be picking only the web2 remains. Thanks for the update. 
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@jammyjtr ·
$0.17
Okay this is actually an awareness that should spread, I never knew up until now. For hive to grow we need more quality and quantity from what I understood in your post, so how do we grow from where we are, and what do you think should distinguish web3.0 from web2.0 ?
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@taskmaster4450le ·
It comes down to layering in the platforms.  We need ignore Hive and concentrate on building the applications, with different layers of potential activity.  This is where interaction arises from.

For example, if you could do one thing on Leo, that might be something you do a few times per day.  However, if Leo offered you 10 things to do, you might do each of those 2x per day.  In the first you have 3 interactions, in the second 20.

Multiply that across the entire platform.
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@jammyjtr ·
$0.17
If am correct your suggesting adding other activities to the blockchain or any other web3.0, to boost the activities an individual does, does that really boost quality.
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@leophile ·
$0.18
For a website to develop or a digital institution to get hold of the market and people, they should focus upon the modes and settings time to time, in built in infrastructure, technology and elegant features that people will grab. 

Talk about monetization and in useful terms, social media platforms like Facebook and adding the extra layer of ad revenues, which helped it to grow and not being static like you manifest in your write. 

Web3 and the speculations would never seem as to finish and it would grow on, the speed development is happening here and the future of it would be astonishing to watch. 

What I think not only social media would be added on,but also the economy, finance and technology would shine as well. 
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@taskmaster4450le ·
Extra layers of revenue is possible in Web 3.0.  That is not the focus though.  It should be extra layers of potential activity which then caters to a larger crowd.
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@outwars ·
$0.18
I guess this is a bit of the issue with being decentralized. People are still divided and are mostly concerned of their earnings. They don't readily think outside the box and see what can be improved or built upon. I guess Leo with their LeoAI is a good start. It is using the data and posts of people to create a custom AI.
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@taskmaster4450le ·
It is more than that.  It is the business mindset.  Even the teams behind the projects are talking nonsense, i.e. more users.  They do not understand the basics of the platform business model.

With Web 3.0, it is a responsibility that falls upon all of us since we have a financial interest if holding the token.
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@precab ·
$0.18
A lot of businesses will definitely need the platform of Web 3.0 to actually go viral and even get stability. I guess it is majorly because of what Web 3 will definitely has to offer and it is just a matter of time before we all see it all 
👍  , , ,
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vote details (4)
@typebox ·
Ultimately , It's not just about adding users but also ensuring their sustained engagement and satisfaction. This perspective underscores the need for a proactive and holistic approach towards platform development and innovation.
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