The centralized nature of traditional creative industries has led to several challenges:

1. Inequitable Pay Structures
   Many creators, especially those starting out, receive only a small fraction of the profits their work generates, with the bulk of the earnings going to intermediaries or large corporations. For example, Spotify pays artists a fraction of a cent per stream, with most of the revenue going to the platform and record labels. Independent musicians struggle to sustain themselves, even with significant traction.
2. Limited Access for Emerging Artists
   In centralized systems, established brands dominate the market, making it difficult for new and independent designers to gain visibility. A clear example of this is Amazon’s dominance in e-commerce, where smaller designers and brands face challenges competing. Often, Amazon’s in-house brands, like Amazon Basics, are prioritized over independent products, making visibility an uphill battle.
3. Lack of Inclusivity
   Centralized industries can perpetuate biases, overlooking marginalized voices and underrepresented communities. For instance, high-profile events like Fashion Week have often lacked diversity, with limited representation of Black, Indigenous, and Plus-Size designers and models. This results in a narrow perspective dominating mainstream fashion narratives until trends shift momentarily, only for everything to revert back.
4. Lack of Transparency
   Centralized industries often operate behind closed doors, with little insight into production processes or sourcing practices. Brands like Shein and H&M have faced criticism for opaque supply chains, where consumers often don’t know the origins of their clothing, and ethical concerns arise due to exploitative labor practices. (and unfortunately, we don’t see this behavior only in fast fashion brands)
5. Shared Data and Content on Social-Media
   Creators frequently rely on social media platforms to reach audiences, but these platforms are controlled by centralized entities that disproportionately benefit from user-generated content. This leaves creators struggling to maintain ownership of their work and receive adequate compensation. For example, the recent temporary TikTok ban in some regions left many businesses and creators powerless, as they lost access to their audience and content without recourse.

These challenges underscore the urgent need for decentralized ecosystems that prioritize fairness, inclusivity, and community support. By addressing the shortcomings of centralized systems, decentralized ecosystems can bring much-needed innovation and inclusivity to creative industries.