The Middleman

The Role of Middlemen in Web2 – A Hidden Truth

Welcome back.

In our previous lesson, we explored the differences between Web1 and Web2. We learned that Web1 was static, offering read-only access to information, whereas Web2 introduced dynamic interactivity—allowing users to both upload and consume content. Essentially, Web2 enabled us to learn from the internet and simultaneously teach it through our contributions.

However, I left out a critical component in that explanation: the Middleman.

What Is the Middleman?

Let’s revisit our example using Instagram. Suppose a user, “JK,” uses Instagram to upload and view content. On the surface, it seems like a direct interaction—JK uploads a post and consumes content. But in reality, there’s an intermediary: a server owned by Facebook.

Instead of directly communicating with Instagram, JK’s requests first go through this Facebook server. Whether uploading content or viewing stories and posts, all data passes through this centralized server.

Why the Middleman Exists

These centralized servers are high-maintenance and require robust security, both in software and hardware. Companies like Facebook take care of these needs:

• Server security and uptime
• Maintenance by engineers and developers
• Rapid response to errors or attacks

This infrastructure ensures a seamless user experience. But it begs the question—why does Facebook offer this for free?

The True Cost: Your Data

The answer lies in data monetization. When users like JK sign up and engage with Instagram, they provide personal information:

• Name
• Hobbies (e.g., hats)
• Age, location, relationship status
• Shopping habits and timings

This data is aggregated into a profile. Although Instagram is free to use, users "pay" with their data. Facebook can then sell this data to advertisers who, in turn, create highly targeted ads.

For example:

• If Jackie usually shops at 4 p.m., she might receive a 50% off hat advertisement at exactly that time on Instagram.
• This timely ad increases the chance of a sale—users often purchase items they don’t need due to the “perfect moment” and emotional influence.

So, while advertisers make money, and Facebook profits from data sales, users are subtly manipulated into spending money—all while believing they’re using a free service.

The Trade-Offs

This model isn't entirely negative. Users benefit from:

• More relevant content
• Personalized user experiences
• Convenient shopping opportunities

But there are serious downsides:

1. Privacy Concerns – The more data companies collect, the harder it becomes to secure it. Data breaches, like the ones experienced by Sony and Facebook, expose millions of users' information.
2. Manipulation – Platforms personalize content to keep users engaged longer, often creating addictive behavior patterns.
3. Censorship and Filtering – Central servers control what can be uploaded or viewed. Content is subject to the platform’s policies, which can restrict free expression.
4. Lack of Transparency – Users rarely understand what data is collected or how it’s used due to lengthy and complex terms and conditions.

The Need for Change

As Web2 expands, so do the limitations and risks of centralized middlemen. The solution lies in creating systems that allow us to:

• Interact directly with the internet
• Own our data
• Avoid censorship
• Control our online presence without intermediaries