Will It Be The Next Big Thing? – SocialFi

Social media is used for more than two hours every day worldwide, demonstrating its influence on culture. Social media has completely changed how we communicate and live. It has permanently changed our culture and rewired our brains.

Today’s social media is dominated by Meta (formerly Facebook), Twitter, Google, and Tencent (China). Services that don’t always suit users’ best interests are produced as a result of the sector’s monopolization by these concentrated titans. SocialFi poses a danger to the status quo.

By allowing users complete control over the sharing and monetization of their personal data, data privacy, and resistance to censorship, SocialFi promises to free users from the constraints of conventional social media.
SocialFi

SocialFi integrates decentralized financing and social networking (DeFi).
The next generation of social media on the blockchain is called SocialFi. It incorporates NFTs and DeFi services, such as yield farming, while utilizing blockchain.

Similar to decentralized autonomous organizations, community tokens allow SocialFi members to vote on proposals and determine the project’s direction (DAOs).

Data is distributed throughout a network of nodes in SocialFi networks, and everyone who contributes to the system’s continued usefulness is rewarded financially. Overall security is improved by reducing data breaches and removing single points of failure.

Platforms like SocialFi offer financial benefits above social networking alone. Users and artists can make money by publishing and sharing content. Because social influence is tokenized, users are rewarded for publishing material that gains traction.

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We must examine the current issues with social media and the potential solutions provided by blockchain in order to fully understand SocialFi and how it can become popular in 2022.
Social media is dominated by Facebook, TikTok, Instagram, Reddit, and YouTube. These networks enable widespread sharing of information and content and are cost-free and practical.

Users no longer retain control of content on social media. Without their permission, any information provided is sold, building a profile that marketers can use to target specific customers. They are harmed by the sale and use of this information.

Facebook was caught selling data to influence elections and sway public opinion, as the Cambridge Analytica scandal revealed. Social media manipulation has the potential to cause international “cognitive warfare” if we are not vigilant.

Other problems of social media include privacy loss and widespread censorship. Social media networks’ propensity to restrict content has sharply grown since the pandemic started.
Twitter founder and Bitcoin supporter Jack Dorsey was forced to step down as CEO due to widespread misinformation and negative social media conduct. According to reports, Dorsey and Block, previously Square, are creating blockchain applications. Previously, Twitter created the decentralized social media network BlueSky. BlueSky proclaimed its independence on February 7, 2022, to carry out their mission. Coincidence?
SocialFi platforms will be essential for freedom of expression and data sovereignty as Web 3.0 decentralizes the internet.

A blockchain prohibits editing or deleting data that has already been entered. Regular users and content creators are free to post anything they want without worrying about censorship or deplatforming.

By enhancing transparency and removing middlemen, SocialFi platforms want to ensure algorithm changes are regulated and content producers receive a fair portion of earnings. Due to more stringent regulations, YouTubers’ income has diminished, yet businesses powered by SocialFi like Subsocial and Deeper Network allow them to earn directly through their fan groups.

While DeFi offers yield farming, loans, and other services, SocialFi uses NFTs and tokens to demonstrate alternative financing.
The use of SocialFi platforms returns control of user data to them, allowing them to decide whether to sell it and to whom. These platforms enable users to pick which goods and services to advertise and receive a cut of the advertising revenue.

Some SocialFi projects are already quite promising. While other ventures lack a viable product, some, like DeSo, have raised more than $200 million.

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Torum is a successful SocialFi startup with over 200,000 users. For enthusiasts of the metaverse, Torum combines social networking with a yield farming hub, an NFT market, and an avatar NFT.

By compensating users for sitting through advertisements, paying content creators fairly, and guaranteeing that information flows freely in opposition to big tech’s demands, SocialFi may have a good impact on the globe.

Similar to DeFi in 2020, SocialFi and blockchain-based social media may see growth in 2022. Adoption might be accelerated via innovative networks. If successful, a large number of disgruntled users will voluntarily abandon Facebook and Twitter.

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