New: Wallet recovery made easy with Ledger Recover, provided by Coincover

Get started

Up your Web3 game

Ledger Academy Quests

  • Test your knowledge
  • Earn POK NFTs
Play now See all quests

Creator Economy Meaning

Nov 27, 2023 | Updated Nov 27, 2023
The creator economy is the economic system built on the internet or digital platforms that enable individuals to earn money based on things they create.

What is the Creator Economy?

The creator economy describes an economy in which content creators  share and profit from the digital content they create. 

Anyone who produces content and shares it over the internet, such as influencers, artists, gamers, writers, podcasters, Youtubers, etc., is a content creator. The creator economy involves the monetization of that content. Creators monetize their online presence and the content they create. 

The Need for a Web3-based Creator Economy

In the creator economy, the entities swooping in are the web2 companies. In the current state of the internet, dubbed Web2, centralized players such as social media platforms and streaming services take a massive share of the revenue that content creators make. In addition, they restrict creators from reaching their maximum potential by censoring the content they can publish and share, and limiting audience reach and how it is consumed.

Enter Web3, the third iteration of the internet, has the potential to empower content creators by eliminating intermediators to give more power and control to content creators. 

For example, if someone releases a new music album on a blockchain-based platform, their audience can buy and stream directly using cryptocurrency. The artist also has the freedom to explore their creativity like introducing new sound patterns or creating a completely different genre without needing permission from their label. All the revenue generated goes to the artist, without a recording label taking a huge cut. In addition, anytime their album or song is sampled by another musician or resold by a fan, they receive royalty money.

Ask Price

An ask price is the lowest amount at which a seller is willing to sell an asset such as a stock, bond, or cryptocurrency.

Full definition

Mining

Mining is the process of confirming and validating transactions and adding them to a proof-of-work blockchain.

Full definition

ERC-721

ERC-721 is the token standard used on Ethereum to create non-fungible tokens (NFTs). Each token created using the ERC-721 standard is unique and not interchangeable.

Full definition