Decentralized social networks allow you to monetize your own free time. And also regulate the algorithms of your page impressions and the security of personal data. And all this is possible now, not in the distant future.
Modern social networks are approaching a dead-end situation. Users are getting tired of constant control and censorship. Therefore, the world is moving into the Web 3.0 stage. Back in 2019, Facebook creator Mark Zuckerberg recorded the trend toward small, closed groups. And communication between people in closed mode.
And no wonder, because social networks are regularly accompanied by problems. Facebook, for example, is “famous” for leaking data of hundreds of millions of users. In this case, all content in the social network is moderated according to the policy of this company. And a special algorithm regulates its displays. All of this, for the most part, applies to other classic social networks as well.
Despite its shortcomings, the social networking market remains in a phase of active growth. Among others, this factor is influenced by the change of generations. Young people are using social networks more actively. And in a few years, it will become the focus of interest for all marketers. The market will adjust to the needs of today’s younger generation.
The desire for independence, the need to monetize not only work time, but also personal time – all this describes today’s youth. Current social networks look like obsolete dinosaurs in this context. Which require an urgent upgrade.
What is the solution to the current situation for social networks?
The next logical step is for the industry to move toward Web 3.0. Estimated Web 3.0 revenue by 2023 is $23.3 billion, and by 2026 it will be $678 billion. A significant portion of this market is decentralized social networking.
In 2021 alone, more than 34,000 new developers joined Web3 projects. And companies have invested hundreds of millions of dollars. For example, the co-founder of Reddit and Solana Ventures launched a $100 million joint investment fund. Many social media platforms are adding Web3 capabilities for Web2 users by offering NFT integration. For example, Twitter allows NFT avatars for Twitter Blue subscribers. Web3 has been attracting investments at full speed. For example, a Web3-enabled messaging and group wallet app raised $3.3 million in a pre-funding round. And the CyberConnect platform raised $15 million in a Series A round.
Blockchain technology allows for secure and confidential messaging. And it is the problem with the risk of leaks of user data that is one of the main problems at the moment. Another trend is the monetization of user creativity. The simplest example: YouTube, which gives 80% of its revenue to content creators. SocialFi has gone further – they offer to monetize not only the content, but also any activity of their users.
Decentralized social networks – past and present
The first blockchain-based social network, GNU Social, appeared back in 2010. And it still works today and is reminiscent of Twitter in terms of functionality. However, as in the case of other early projects. To access it for the average user, far from the world of technology, is a difficult task. This is one of the main barriers to the widespread dissemination of any innovation.
Newer projects have solved the problem. For example, in one of the largest social networks Web3 MAIN, part of the functionality works in a format familiar to all. But the ownership, management and monetization functions have been moved to blockchain. So anyone can start using the platform without installing any wallets. At the same time, as the user immerses himself in the topic, he can gradually work more actively with Web3 functionality.
MAIN is the largest social network on the blockchain BNB Smart Chain. Its monthly audience of registered and active users exceeds 20 thousand people worldwide. The project was launched in 2021 on the blockchain BNB Smart Chain based on the social platform. Where users received tokens for their posts. Also, token holders can not only store them or use them within the platform. But also send them to staking Earnpark (maximum pool – 10 million tokens).
Classic social networks are now avoiding the community theme. Because fast content is more profitable for maximizing advertising revenue. People suffer because they can’t communicate with each other in their niche communities. However, MAIN gives users that opportunity. The project offers a system of thematic communities (boards) created and managed by users. Each board has its own coins and the users manage the community in proportion to their share.
The platform is accessible through mobile applications. And users’ assets are stored in their wallets. Therefore, even if the account is blocked, the assets in the personal wallet can be sold through the exchange. And in order to receive tokens, it is enough to be an active member of the boards. As well as to create their own content or perform administrative functions.
Next step of the social media industry
Our experts note that traditional social networks are losing user trust. Data leaks and total control are relics of the past. Which will logically go away with the development of this industry.
Decentralized social networks are the future because they meet the demands of young people. Among the main advantages of SocialFi are the ownership of one’s data and assets, the absence of censorship and the ability to monetize one’s personal time and multifunctionality.
The industry is just beginning to develop. Which means that now there is an opportunity to become the same early user who once mined Bitcoin on a laptop. It is quite possible that after a few years the idea of decentralized social networks will seem obvious. But already well assimilated and become part of everyday life.