YouTube and Facebook Are Losing Creators to Blockchain-Powered Rivals

in #steem7 years ago

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 While YouTube has had to start taking a tougher line on censoring  offensive videos that advertisers don’t want to be associated with, a  growing swath of creators have fled to sites such as DTube to avoid the  constraints. Like other upstart sites, DTube runs on the blockchain  network Steem, and users can pay creators and commenters in digital  tokens. That’s another point of distinction with YouTube, as well as  with Facebook and Twitter. All three advertising-driven sites are  phasing out ads for cryptocurrencies, shielding themselves from  potential legal liability if the ads are scams or the digital coins are  eventually regulated as securities. Video creators with an interest in  cryptocurrency say that’s also a factor driving them away from the big  names. In the wake of Facebook’s data scandal, privacy is a third.  YouTube didn’t respond to a request for comment for this story; Facebook  referred to previous statements that the company is working to repair  its reputation but hasn’t seen a significant drop in users.

The less centralized platforms keep more power—and potentially, privacy—in the hands of creators and users, says Ned Scott, who runs the Steem-based social network Steemit.  In lieu of ads or selling user data, sites such as Scott’s rely on user  growth to make their digital tokens ever more valuable. “The whole  experience is more transparent,” he says. “There won’t be many single  authorities dictating how social media operates.” Two-year-old Steemit  has about a million accounts and added some 120,000 last month,  according to Scott. Rival LBRY has about 600,000 registered users.

That’s far from Facebook’s 2 billion monthly users, or even  the up to 87 million whose data was given to Cambridge Analytica. But Naomi Brockwell,  a video creator in New York who specializes in crypto material, says  she’s already making an average of $40 a video in Steem tokens, which  could take her months on YouTube. Brockwell says she needs to find  alternatives to the name-brand social networks as they phase out ads on  her videos. “I don’t think this is about protection,” she says. “This is  about control.”

Brockwell,  like many creators on these newish sites, was initially skeptical that  the Steem tokens were worth anything. And it’s something of a pain to  exchange them for U.S. dollars: On most cryptocurrency exchange sites,  you have to trade them for Bitcoin first, then swap the Bitcoin for  cash. Easy enough, Brockwell says, given the upside.Creators can  expect to retain significant control with blockchain sites because there  are few barriers if they decide to leave, says LBRY Chief Executive  Officer Jeremy Kauffman.  Like email, he says, it’s relatively easy to switch to a similar site  if you don’t like his. And because of the decentralized nature of  blockchain networks, tech-savvy users can find ways to post  controversial material, even if he tries to block or ban it.

The  flip side, of course, is that such lax rules can make these sites  havens for precisely the kinds of hate speech, conspiracy theories, and  otherwise undesirable material that YouTube and others are slowly taking  action to block. Stemming the spread of those kinds of videos without  compromising free speech or creators’ wallets has been a difficult  balancing act. Nasim Aghdam, a YouTube creator from San Diego, complained to relatives repeatedly about the company’s compensation practices  before she opened fire at YouTube’s headquarters in San Bruno, Calif.,  on April 3, killing herself and injuring three other people.