SocialFi
Web 3.0 is creating new technology fields that mix with features of decentralized finance (DeFi) to blur the lines between web2 and cryptocurrencies, such GameFi and now also SocialFi.
what is the socialfi?
SocialFi is the combination of Web3 and social media.
It refers to a blockchain-based social media platform with a financial component. The concept combines the principles of decentralized finance (DeFi) and social media to develop, manage, and own user-generated content on platform-based social media sites.
SocialFi applications are intended to provide enhanced data control, freedom of expression, and the potential to monetise engagement and following generated by content creators, platform participants, and influencers.
The most important takeaway from its debut is that decentralized social media will not be subject to censorship and will be able to directly reward the majority of its users through tokenization.
For instance, users of SocialFi platforms can transfer funds directly to other users without the need for a third-party vendor. This means that users will receive their payments expeditiously and at no additional cost.
detailed socialfi features
- No censorship
- Direct incentives are possible through tokenization.
- Decentralized governance confers greater command
- No central authority shares, only direct payments.
- Web 2.0 improves user experience
how did the notion of socialfi originate?
Web2 businesses have dominated the online scene for the majority of the 21st century. They introduced us to the delights of search engines, and soon social media ruled the globe.
Even skeptics of social media will acknowledge that it is one of Web 2.0's most successful innovations. Hundreds of billions of dollars in ad revenue and membership fees have been generated by social media for corporations who have mastered it.
Unfortunately, the online content creation and social interaction corporations that grew into tech behemoths are now monopolies.
The Cambridge Analytica incident on Facebook is a perfect example of users' information being utilized as a commodity, exchanged and sold to firms without users' knowledge, leaving us with doubts regarding data protection. Several revisions and transformations have been made to the user data policies as a result of this occurrence, but the damage has been done, and users are hesitant to freely use these policies.
difficulties with web 2.0 and social media
monetization
Over half of the world's population spends an average of 2 hours and 27 minutes (about 147 minutes) per day on social media. Who, though, profits from all these contacts, attention, engagement, and data? A few concentrated corporations and their constituents.
freedom on speech
You may have also observed that a number of users, influencers, and content creators have been banned for expressing their view on a certain subject or uploading a picture that is offensive to a certain group of people. Decentralization in this domain would be more in line with Web3's ethos, despite the fact that all of these norms are in place to safeguard the majority of users from harmful posts.
electronic property
Online producers and artists have been among the most concerned about digital piracy. Web2 applications lack effective management of digital ownership, which leaves digital piracy vulnerable to exploit.
how does socialfi operate?
Initial monetization on SocialFi networks will be conducted in cryptocurrencies. While non-fungible tokens will be the driving force behind digital ownership and identity management (NFTs).
Second, the principle behind SocialFi is to empower users and enable them to profit from every engagement. This means that revenue can be made from the creation of content, and advertisement revenue can be fairly dispersed without a single entity collecting the lion's share of profits.
SocialFi is the preeminent platform for generating passive money through social activities since it allows users to post freely and provides a reasonable portion of earnings without overreach.