Mixing social media and Web3 – what do we know about SocialFi?

Mixing social media and Web3 – what do we know about SocialFi?
12 Oct 2022

SocialFi (social finance) unites the principles of social media and DeFi (decentralized finance). To put it in another way, it’s social media based on blockchain technology. Its participants are targeted on secure data, freedom of exposure of their opinion, and monetizing of their social-media engagement. Regarding the latter, the profit from engagement is paid in cryptocurrency, while NFTs (non-fungible tokens) drive identification and digital ownership.

SocialFi helps to generate added value to social networks through numerous decentralized platforms, tokenization, and handling of strategic decisions for the sake of improvement of such platforms under DAO (decentralized autonomous organizations). Anyway, the future existence of SocialFi is determined by 3 main aspects: the user, the metaverse, and the experience the users get.

The most important part – The User:

No social media could exist without the user. The main target of SocialFi is to attract crypto and non-crypto users to bring life to online platforms. There’s a huge difference between nowadays and future social media platforms. Web 2.0 states that you are the product, while the platform is the seller. However, such platforms are currently centralized, this is a reliable start since today’s Web 2.0 platforms allow users to socialize all the time like before while still having control of the data they generate and engagements they monetize. Speaking about Web 3.0 platforms – you’re the owner and the platform is the trainer. You own and control your data and can use it at your discretion.

The next one – The Metaverse:

The idea of the metaverse is to be your digital life but it doesn’t consist of single blockchain technology. A part of your virtual life where you socialize is a great opportunity for SocialFi. To grab it and provide a mesmerizing user experience, the metaverse world must be opened for decentralized application (dApp) builders.

And last but not least: The Experience

The biggest advantage is that the world is quickly adjusting toward creator economy models, and SocialFi platforms show a very promising future for everyone. The sky is the only limit!