3 mins read
SocialFi: The Next Big Digital Movement?
By December 6, 2022
We all have been hearing about Blockchain, DeFi, NFTs, and Smart Contracts for
quite a long time now, both on the Internet and on social media platforms where
they have gained all the hype and popularity. With their practical applications being
implemented in various industries they have revolutionized the digital world with
their diverse nature and characteristics and have proved to secure users’ data and
their assets from exploitation and potential privacy threats.
Well, with scientists and IT experts experimenting with technologies on an everyday basis, they have introduced an ever-new concept of SocialFi buoyed by the decentralized vision.
Till now social media was dominated by the Web 2.0 giants (Facebook, Twitter, Tencent, Google) whose services offered were not always in the best interests of the users; nonetheless, SocialFi presented by Web 3.0 is here to break the status quo.
Social media and the digital world will see a breakthrough in a lifetime where decentralization will get blended with social networking that will better protect users’ privacy and their assets.
What is SocialFi?
SocialFi is a term given to Social Finance that is a merger of social networking and decentralized finance (DeFi). Blockchain technology is bringing a new wave of social networks that will be bigger, better, and more secure.
The SocialFi phenomenon leverages the benefits of blockchain adding NFTs and DeFi where the new social networks will take the existing social models and give them superpowers.
In the SocialFi domain, users will benefit from social activities, content creation, participation in DAO governance, NFT creation, communication, gaming, entertainment, and much more. The blockchain-based social network will provide enhanced privacy and security to users’ data, distribute advertising revenues fairly and offer a more valuable user experience.
How Does SocialFi Work?
The social media networks controlled in Web 2.0 were centralized as they were controlled by large organizations where privacy invasion and security leaks were more prevalent.
SocialFi on the other hand follows a decentralized approach where social networking controls the privacy and safety of users and gives them more control over their assets and information. SocialFi platforms can be partly owned and managed by their users as community tokens allow people to vote on proposals and decide on the project, analogous to DAOs (Decentralized Autonomous Organizations).
Unlike traditional social media platforms where user data is stored on centralized servers, SocialFi networks break data and spread it on the web of nodes where everyone who helps maintain functionality is financially rewarded. This not only improves security but also vanishes the chances of single points of failure.
Furthermore, SocialFi can potentially support software applications that will focus on content creators and the protection of their work and data privacy. Moreover, it will also eliminate censorship of users and protect their accounts from being deleted or deactivated.
Socialfi Will Fight Censorship And Retain Data Sovereignty
Usually social media activities today occur on platforms like Twitter, Facebook, YouTube, Reddit, etc. that offer unparalleled convenience and allow information to be disseminated on a large scale. But this way users lose ownership of their published content which can be/is sold further without their consent to generally exploit audiences as consumers.
With prevalent toxic behavior being seen over social media, there is a need to eliminate such activities over communication channels keeping in mind the best interests of users. And this need is accommodated well by SocialFi which decentralized the social models and preserved the rights of users for freedom of expression, speech, and data sovereignty.
Data uploaded over blockchain-powered social networks will be transparent, traceable, and immutable which will empower users to create and publish content without the fear of being de-platformed or censored.
Ultimately, users can enjoy benefits and more freedom from decentralized social networks where they can have full control over sharing their content and monetization. It allows users to earn via their content and also via other decentralized activities like communication, NFT minting, gaming, etc.
SocialFi is Still in its Infancy, But Isn’t Far From Implementation!
Enabled by blockchain, SocialFi is seen to possess tremendous potential to mold digitization in a new shape and bring a myriad of benefits for users as well as organizations. Many companies have already penetrated the concept and have started to combine it with DeFi, NFTs, and Metaverse to see the results.
With all the benefits realized, SocialFi is considered to witness a boon soon and is seen to put a positive impact on the world, thus, erasing criminal and illegal activities that are run presently over social media networks today.
We at CodeGlo, welcome such great and breathtaking opportunities and are eager to work on the same with our esteemed clients. Our Blockchain services are offered to bring great revolutions in the world of tech and we are happy to make successful contributions till now. To know more about our Blockchain Services and how we can assist you, get in touch now.
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