Are Peer to Peer Subscriptions the New Web3 Business Model?
There is a price for everything. But what about the Internet? Sure, you pay your Internet Service Provider a few sats a month for an internet connection.
But, how can that be enough to pay for the hundreds of thousands of websites that are out there and the ones that you visit on a daily basis? Shouldn’t there be an entry-pass for each website that lets you through only after a.. Subscription?
Well, here’s the awkward truth.
The internet is not really free to use. It has never been. There’s a price for that messaging app, streaming platform, and even a P2P VPN service.
The price of using the internet is your data.
How is your data of any use to anyone you ask?
Data is indeed the source of revenue for Web2 companies. The data economy has grown manifold in the past couple of decades.
Meta, formerly Facebook, made $114.9 Billion in advertising revenue in 2021, with the help of its user data.
And here’s a report by IBM that outlines the various ways in which companies can monetize your data. It is evident from the report that any Web2 company that fails to make efficient use of user data will fail in the digital transformation race.
Archaic Business Models
Yes, your data is instrumental in the upcoming data revolution in which, and here we quote, “he who controls data will control the world.”
Web2 companies that don’t have a subscription-based business model to generate revenue depend on user data and ad-revenue for sustainability.
Because, how else would they break even or turn over a profit? But, when users pay for their products and services, there’s a viable business model that liberates them from collecting user data.
Applications that make revenue off of subscription models needn’t sell your data to generate revenue. Subscribing to a service ensures that your privacy is protected.
But all things considered…
Your data is still being collected.
You need to trust the entity providing the service to NOT sell your data.
While there are a few Web2 companies that adhere to ethical practices in handling user data, not all do. Instances where businesses and institutions use data without consent has been observed again, and again, and again.
Besides, subscription options are subject to the decision of the service provider and you may not be able to find a plan that suits your goals and needs.
Say, you need a subscription plan that lets you use a service for just a couple of hours, a few days or a couple of weeks.
These are called micro-subscriptions and they’re here to change the game. Because why should you pay monthly or yearly when you can pay for just what you use?
- You subscribe to a P2P VPN for 5 days, pay usage fee for the service by the hour to the vendor and be done with it. This way, you don’t need to worry about mandatory monthly subscription fees.
- Another example is downloading a free version of the application and adding additional features as you go for a fee. This gives you the ability to customize the features that you want to use.
- This way, you also get the chance to support the small players who offer competitive pricing and an exceptional service.
Is such a thing even possible?
Yes. Micro-subscriptions have been around for sometime now. Many platforms have begun adopting this business model. But, the true potential of micro-subscription is achieved when combined with a peer to peer business model that empowers the users!
Eliminating the Middlemen, for Good
Web3 is all about empowering the community and giving back control of the web back to the users. The corporations have owned the greater part of it for long enough.
Beldex takes this a step further by adding a layer of privacy to every transaction, message, and internet connection.
But we didn’t stop there. We want to create an privacy-preserving ecosystem that’s self-sufficient and run by its users.
To achieve this, we are developing a peer to peer subscription service which will let you subscribe to – not a company – but a node run by another community member!
Before we go into the details of how this might work, let’s think about how a community run economy might look like.
- There would absolutely be no gatekeepers. None.
- This would create maximum decentralization provided the entry barrier is low.
- And boost cross border interaction between users. There are no borders when you’re using a cryptographically generated address instead of a bank account. This paves the way for truly globalized peer-to-peer services.
Peer to Peer Subscriptions on BelNet
Peer-to-peer subscriptions on BelNet are being developed so that users can run localized exit nodes and get paid for it everytime someone opts to use their node.
Masternode operators can make use of their passive income by running exit nodes.
There are two types of nodes on BelNet.
Relays and exit nodes. While relays encrypt your connection with onion routing, exit nodes help you mask your IP and location.
P2P subscriptions create unique value for exit node operators based on the location they’re in! Unblock geo-restricted content is the No. 1 use case for a VPN.
If you’re based out of the U.S., then any user who wants to unblock a website or streaming service available only in the U.S. would opt to use your exit node!
You can attract users by offering a competitive edge over others by customizing your exit nodes to provide flexible subscription periods, pricing, and bandwidth.
The more people use BelNet, the higher is your chances of building out a successful business and a strong user base who trust in your exit node service.
Ofcourse, users pay you in BDX, which creates a feedback loop for BDX. Demand for BDX rises as a result which inturn leads to a positive price discovery.
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