Apple had raised $67 billion in 2020 from its App Store. This is an increase of 28% from $50 billion in the year 2019. While this is one of the major sources of earnings for Apple, although even the company has lowered the commission from small developers, the Apple Store continues to be a key player in Apple’s profits. While this is not just the scenario with Apple, even the Google play store had made $38.6 billion in 2020.
While that together counts for a total of $105 billion yearly revenue gains, further discussing the revenue distribution Vilfredo Pareto explained it with his 80/20 rule which states that 80% of the revenue is generated from 20% of the customer base, but he stated that isn’t the scenario in the case of Apple where the 95/2 rule is observed, that means the overall 95% of the revenue is generated by the top 2% apps on their App store.
But while considering a Decentralized Application (DApp) if a DApp in the case becomes the most revenue-generating application on the store, it will potentially have a huge advantage, therefore most of the well-organized app stores would spend a good chunk of money to get these apps featured on their app stores. Thus when anyone who wants to download and use the app will have to go through a certain distributor.
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Any app store has a similar monopolistic approach to their ways of making profits, that is until they own the rails, they have their profits, as simple as that.
But with the introduction of Web 3.0 economics the 80/20 rule becomes obsolete and also web 3.0 is not the place where this 80/20 rule should be implied, rather the web 3.0 believes in making more profits from more number of users that participate in the governance, growth, maintenance and daily operations of the ecosystem.
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In the Web 3.0 ecosystem, the reward distributions amongst the peers will be based on the amount of participation and contribution done by the participants. This also proves to be a better, more balanced approach to do business.
Some various aspects and criteria are required to be taken care of while building a decentralized distribution for DApps like Governance where the DApp should be community-driven, Ownership where the profits generated are distributed in accordance to the governance structure, Tokenomics where the developers will be incentivized based on there key tasks done, Interoperability where the users of the DApp can freely move their apps and its related data from one DApp store to other along with them, and there can be no one specific rule that is to be followed up by all the DApps store.
With the complete transition into the web 3.0 phase, there are high chances of having DApps serving a small group of similar interest peoples, while this will also give rise to a more vibrant ecosystem of DApps that will have compact and small development teams working and maintaining the apps.
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