The internet has entered a new phase; it’s not Web 3.0.
In the 1990s, as the internet began to gain popularity, dozens of new companies flooded the NYSE during the dot-com craze. One clear trend that emerged was the use of aggressive customer acquisition tactics by offering free services followed by a paywall for certain features.
My awareness of the world began in the early 2000s, as terms like Yahoo, Cyber Café, and mobile data became integrated into the language of Nigerian metropolises. Personal home computers were a luxury for a few professionals and their families, and luckily, mine was among them. The habits we formed during that time have stayed with us, from using pirated software and downloading free games to participating in local online forums.
Back then, you could get a free email account, open a free social media account, and upload media to your profile for free. The internet felt like a breath of fresh air, and it has since grown to serve over 5 billion users today. This world-changing product was created and is sustained by brilliant altruistic individuals. However, like every startup journey, growth isn’t endless; it’s a phase that must be shed for new growth. The “Internet” product has matured.
Now, it’s moving towards sustainability. But what does sustainability entail? It’s about paying for what you consume.
DeFi (Decentralized Finance, also known as crypto finance or what I call cryptonomics) has introduced a model where users pay for the resources they use during their events or transactions.
Just as humans adapt technology, the fundamental principles that fueled internet growth still apply. Opening free accounts, testing resources for free, and offering limited versions to retain non-paying user engagement remain essential strategies.
New models are being integrated to enhance service delivery and system sustainability. The incorporation of pay-as-you-go and subscription models into previously free platforms to capture more value has been rapidly adopted in ubiquitous applications like Facebook and Snapchat, reshaping how we interact on these platforms.
Moreover, a reverse economy is emerging where users are paid for contributing value to platforms. This is especially common in community and network-based products. These systems have naturally developed over the years, with multiple startups assisting creators in monetizing their audience and generating significant wealth.
Despite the internet’s benefits, it’s essential to acknowledge its downsides. I’m not referring to the Darkweb, but rather the numerous data privacy-related lawsuits against big tech since the turn of the millennium, which have had a significant impact. These lawsuits have shaped the lives of entrepreneurs and the product experiences of billions of users over the decade. Big tech corporations will always possess our data as long as we use their products; it’s the nature of the system. How they use it is entirely up to them, and whether they inform us is another story. Additionally, algorithms play a magical role in determining our interactions in these digital landscapes. They act as the concierge that understands our online selves better than we do — a sort of robot that manipulates our thoughts and behaviors.
I’m neither sharing gloom nor shine. This is simply a reflection on how the most desruptive yet essential product of this century has evolved and the direction it’s taking.
