Web3 explained. This is how it’ll change your life as a creator.
Words: 2498
Reading time: 9 minutes
Web3, the blockchain - and the NFTs will change everything for creators. Not only creators - but for every single human being.
Why? And what even is Web3?
Today we'll go through this new stage of the internet that is still unpopular amongst people. But over time, it'll change their lives.
It has changed my life. NFTs have been my greatest income source. By far.
We'll go through:
1) What is Web3?
2) What is blockchain?
3) What is an NFT?
4) Why should you care as a creative?
5) Who will thrive with NFTs?
Let's start, my friends.
1) What is Web3
To understand what is Web 3.0 - you must understand what is Web 1.0 and 2.0.
Web 1.0 enabled you to start reading stuff on the internet.
Web 2.0 enabled you to start creating on the internet.
Web 3.0 enables creators to start owning a piece of the internet.
People use the term "Web3" to talk about all things from the blockchain, and crypto world to NFTs.
The Web3 is the next stage of the internet. And you must not underestimate what this will bring to the table.
If you have played video games - and bought "skins" for the game - the same thing is about to happen with all digital things.
You can "own" someone's 1st tweet. 1st every digital photograph they made. You can collect your favourite photographer's photos in your own digital art collection.
You don't need to understand anything about video games to understand Web3. I just used it as an example.
To put it simply:
It will change everything. You can buy digital items or tokens - from your favourite creators and artists. And you can make and sell your own.
You can trade them with anyone and anywhere in the world. You can also sell them (potentially for more money).
Soon - when you're going to a football match - you'll receive your ticket as an NFT.
In the future, most won't even know it is an NFT.
They won't call it an NFT anymore.
Just like Instagram calls them "Digital Collectibles". (When they had them integrated sometime back).
When you're going to a concert - maybe you'll be rewarded with a collectable only people at the concert could get.
Video game skins can be legally and easily sold as NFTs online.
All this is possible with blockchain... but what is it? Let's go through it now - and then dive into what's an NFT.
2) What is a blockchain
The blockchains are made of blocks. They're connected together.
A new block is created for a new transaction. And it holds the information of the transaction. It is visible to everyone in the world.
Easily put - it is:
A collection of records which is linked with each other. And it is extremely well protected.
When you buy crypto - that transaction from the normal money (aka fiat money) gets recorded.
When you swap crypto to another - gets recorded.
When you send crypto to a friend, it gets recorded.
Blockchain holds information. And it is public. Everyone can see ALL the transactions.
So yes - if you'd want to... you can see how much your friend has crypto in their wallet. And they can see yours too (assuming they know your wallet address.)
The blockchain replaces the middleman.
You don't need to wait for a bank's approval for a transaction.
You can see the transaction happening in real-time.
I believe - the blockchain will replace the banks.
Not maybe totally - but for some people.
Or it will change the way banks operate.
Many people love having control of their money. But some are scared to have that responsibility.
If you sent money to the wrong address through a bank transfer - there might be a way to get it back.
With crypto - this isn't the case. Nobody can recover the money you sent to the wrong address.
But it's not "easy" to send money to the wrong address. I have never done that (at least yet).
Blockchain is a beautiful technology. I can't wait how it is adopted.
Which blockchain to use?
There are many different ones. But with NFTs - the most popular ones are:
1) Ethereum
2) Solana
3) Tezos
Ethereum is the main one. It does cost the most to use (with transaction fees called "gas fees".) but it's the one I recommend.
Solana and Tezos are less popular (as of now at least). But Tezos is popular amongst some artists and collectors. It is known as the place where you can buy art for cheap.
So if you want to make lots of money - Tezos isn't the place for that. But Ethereum and Solana are good for this.
You can make this sound much more complicated. So I'll not dive deeper into this.
But now let's talk NFTs - which is what most of you will find the most helpful.
3) What is an NFT
The word NFT comes from "non-fungible token".
This simply means "non-replaceable."
That there is only 1 token like that in the entire world. Such as there is 1 real Mona Lisa.
Only 1 can own the original piece.
What would be a fungible (aka replaceable) thing? Something that many can own. Like football cards. There can be 10,000s exactly similar ones.
But do you need to own crypto to make NFTs?
Well... yes. Currently. I believe this will change in the future.
Do you need to own crypto to buy NFTs? No.
You just need to have a crypto wallet (which works basically as your "vault" for crypto and NFTs.
And you can make one for free.
I recommend MetaMask. I use it. So do many others. But there are alternatives.
But be careful. I'd advise you to get a MetaMask because you can trust it as many use it. There are wallets that are not popular - and I personally would be more hesitant to use those.
Here's a video on how to set up a MetaMask - watch it when making your crypto wallet. :)
4) Why should you care as a creative?
Web 2.0 was about creating and consuming content.
Now Web 3.0 is about ownership.
You can sell your content as NFTs - if you want to.
Your fans can collect your art - the same way they'd buy digital items in a video game.
You can reward those fans who own certain NFTs with basically whatever you want. It can be experiences, surprise "Airdrops" (dropping an NFT to their collection for free) - or something else.
The sky is the limit here.
How do I reward my NFT holders?
1) You don't need to award anyone.
Art doesn't need utility. But... you can add it if you want to.
I have done giveaways and given away free art. People have had access to me via 1-1 coaching by owning 1 or more of my certain NFTs.
And so on.
I'll be doing more rewarding stuff in the future. Because it's fun. And well... because more people then want to have my NFTs too. :D
Should you start to sell NFTs NOW (in November 2023)?
It depends. It won't be easy now. But it's important to start learning about it. Then you're ready for the future.
There is momentum on the crypto side of things. So things can take off very soon. But the mass adoption won't be here very soon. As the technology needs to develop further.
Currently, it is harder to buy an NFT than it was Bitcoin back in 2013. So this needs to change.
But once that's out of the way... everyone will own NFTs. Every. Single. One.
It might not be a collectable. But your house (yes your house), insurance... or a ticket can be linked to an NFT.
And creators who understand this before others - have the advantage.
I've been into NFTs now for 2.5+ years. I was one of the 1st - if not the 1st - NFT photographer from Finland who got into this stuff. At least the 1st nature photographer - that's for sure.
I have an advantage as people know me for NFTs - even if they don't understand what it means.
But I'm saying this - that you can have an advantage too. If you start now.
The potential of NFTs and blockchain
NFTs will change the way we verify things. And the way we do transactions.
One day - you'll own an NFT of your house - to prove it's yours. No need for the massive amount of paperwork and middlemen.
One day - this technology will be used for medical records.
One day - most people will use cryptocurrency to make transactions. Government-issued currency won't be as big of a thing anymore.
Nobody - nobody - can stop cryptocurrencies from getting leverage.
Crypto VS Governments
Some countries have banned it. Some have unbanned it.
The thing is - if one country bans it - another country will take advantage of it.
So countries can't ban it.
If some do - many will move away to another country.
If the EU banned crypto and NFTs - would I move away for the time being? Most likely I would.
Many would do the same. And then other countries would take advantage of it. And then the EU would change their policies again.
Some governments are scared of crypto. As it takes power away from them to the hands of the people.
Powerful people want to hold onto their power. Nobody wants to lose it when they've got it.
Dubai is the leading city for crypto. They have realized the potential. And the government itself is involved with some NFT projects (such as the 2117 project).
It'll be interesting to see which countries will try to stop NFTs and crypto. And which ones will embrace it.
My guess is the EU will be the most strict with the legislation.
Poorer countries are more pro-crypto - as it helps them with their own economic situation the most.
We can see this with El Salvador. Bitcoin was adapted as the 1st official currency there. The country is heavily invested in Bitcoin.
How will it play out? Time will tell. But I think it's awesome to see them using the new technology and pushing the world forward.
Environmental impact?
This is something many were worried about in 2021. And then it was a larger issue.
Ethereum PoW (proof-of-work) system was taking as much energy as the country of Serbia.
But making NFTs didn't have an effect on that, not really.
The PoW system was like a train. It'd keep going and take energy whether you did anything with NFTs or not.
But now - the PoW system with Ethereum is no more. It has changed to a PoS (proof-of-stake) system - and it has reduced its carbon footprint by 99.99% after this update.
So - you don't need to worry about the environmental impact anymore. :)
In fact - Ethereum PoS takes 175x less energy than Netflix servers.
Yep. 175x less. Think about that.
5) Who will thrive with NFTs?
This is a hot take - but I believe I'm correct about this.
If you were 1st - it helps (read more on being 1st and standing out here.) - but it's not going to guarantee success.
If you were the 1st doing NFTs in a unique way, from your country and so on... it's easier to succeed now.
You stand out more easily. But when the "mass adoption" comes (when most will own NFTs) - if you haven't succeeded by then - it doesn't matter who was 1st.
Even if you were 1st - you must've built a large audience around your work. To achieve this - the best way is to build on multiple platforms at the same time.
Those with the largest audiences will win. Because they can simply mention NFTs and they can get into the minds of lots of people 1st. (And then you can no longer directly compete.)
That's one of the main reasons I've started obsessing on IG and YouTube.
The creators with massive following will be the ones whose NFTs people will seek the most.
Sure, some will seek for some NFTs created early on. But most won't care about that.
"Hugo! Building on many platforms is difficult!" - that is true. But guess what is also true? If it was easy - everyone would do it.
You need to have systems in place to produce a mass amount of content.
My system (in progress)
Here's my system as of writing this - keeping in mind this can change as time goes on.
1) I write this Newsletter you're reading
2) I use this as a script for my YouTube videos (no extra work needed)
3) I upload the same YouTube video as a Podcast (literally no extra work)
4) I break down the Newsletter into smaller pieces of content (for tweets and IG vids)
5) IG vids I post to TikTok and YouTube Shorts (no extra work)
6) I write and test out ideas on X. Those that perform well - I write more on - making it easier for my content to perform well.
7) I repost my best-performing tweets to LinkedIn.
I'm not saying you should do the same. You need to find your own system - and what works for you. And what is aligned with your goals.
Does it sound like my system takes a lot of time?
Well... it doesn't.
Usually, it takes me 2-3 hours per day. Sometimes even less.
And as I get better over time - it'll take even less time.
As 2-3 hours isn't "that much" - I can "easily" do it for years. Making it much easier for me to succeed even more.
Create a system. Test it out. See what works. Change what doesn't. And keep running the system for a long time until you see success.
Last words
I hope this Letter helped you understand these topics more.
They can seem super complicated at first. I still remember learning the correct terms, crypto, trading... all kinds of stuff (of which all isn't necessary).
Learning will take time. And effort. But it's those who do put that effort in - who actually see success.
Now on Web3, I'm working on a project called "Tales of The North". And I want to make this thing into something nobody has ever done before (although it'll take time).
You can also join the project if you want to. Just head to hugokorhonen.com/tales-of-the-north to learn more. There you can also find a Web3 playlist of videos I recommend to beginners. :)
Please send me a DM on Instagram @hugoraphy if you have any questions about the project. :)
But this was it for this Letter! I found this very important topic to touch on - as I hadn't written about it here before. And it's going to make one MASSIVE change to the entire world in the upcoming years.
And - if you haven’t already subscribed to my Newsletter to get these to your inbox - do so now. Don’t miss these:
Till next Saturday!
Hugo
