Social media has transformed the way people interact and socialize. The platforms have also been great for community building and sharing news. However, social media companies have always been marred by issues related to privacy, compensation, and control.
A new entrant in the space is SocialFi platforms. These platforms use Web3 technology, combining social media with decentralized finance. This integration provides users with increased control over their data.
Additionally, users can earn tokens through engagements and monetize their content directly.
An In-Depth Look at SocialFi
SocialFi, short for social finance, is a new sector in the Web3 and crypto ecosystem. Think of SocialFi as a combination of social media and decentralized finance. However, the difference with traditional social media lies in the integration with blockchain.
The use of blockchain technology gives users more control over their content. Users can also earn directly from their content, unlike in today’s social media space, where the money is divided between the company and high-profile users, with the company taking the biggest percentage.
How Crypto SocialFi Platforms Will Transform Online Communities
§ 100% Ownership of Content
Facebook, X, and Instagram have all been in the spotlight for selling user data to advertisers. This is not the case with SocialFi platforms, where data is stored in a blockchain. You retain 100% ownership and have a say in how your content can be used.
§ Better Monetization
Monetization is an issue on almost all social media platforms. The parent companies control how much users get from ads, brand partnerships, and subscriptions. Crypto SocialFi platforms eliminate middlemen in the whole monetization equation through the integration of decentralized finance platforms like Flipper.
As a creator, you can create tokens, reward your followers, and add paywalls to premium content. Your followers can access special posts, get shoutouts, or earn tokens by paying you using crypto.
§ Decentralized Governance
There have been a lot of issues with social media platforms shadow banning users, controlling narratives, and banning users, which are violations of free speech. Many crypto SocialFi platforms operate under decentralized governance, where community members vote on changes, features, and rules.
Considering these benefits, it’s natural to wonder what the future holds for users of any crypto SocialFi platform.
Having a big following in today’s social media space doesn’t guarantee good returns. Most users often resort to engagement farming and rage baiting to boost their earnings, which isn’t ethical.
§ Empowering Content Creators
With a crypto SocialFi platform, you don’t need a massive following to earn. Users with small followings can create tokens and sell their content. For example, if you are a photographer, you can launch a membership token to provide access to your posts.
§ Better Communities
Having a reward system encourages users to build stronger communities. This stimulates users with large followings to create more quality content for their users. On the other hand, users will be interested in engaging with content to earn free tokens.
§ Earn from Anywhere
A crypto SocialFi platform breaks boundaries. You can earn from any country by displaying your crypto wallet address. This is a huge plus for users living in countries with limited access to banking and online payment solutions.