- Simply put, SocialFi is social media on the blockchain. Among its many benefits, decentralized social media is not censored and is able to directly reward its most influential users thanks to the token.
- For example, users can tip or send direct payments to other users on the SocialFi platform without resorting to any third party processors. This means users receive payments faster and without any fees, unlike PayPal or similar solutions.
- Plus, people have greater control over the SocialFi platform thanks to decentralized governance and DAOs, which enable users to vote on upcoming changes and voice policies within the network. Centralized platforms like Twitter will no longer dictate and change algorithms at will. A DAO ensures that the majority of users must agree to a change before it can be implemented.Similar to Twitter’s implementation, SocialFi participants can also display their NFTs as profile pictures, albeit with more features and integrations than on the Web 2.0 platform. Creators can also make a name for themselves without following a third-party platform.
- A famous Twitter artist may get thousands of likes and retweets, but the only entity to profit from popularity is Twitter, thanks to its advertising revenue. Sure, artists can share their Patreon, but only their most dedicated fans will navigate to Patreon, create an account, and subscribe.Direct integration is important here. Users should have no qualms in supporting their favorite creators, and a well-designed SocialFi platform allows just that.If social media platforms properly harness the power of Web 3.0, decentralization and NFTs, we will soon see higher adoption rates.Personally, I understand the inherent value of NFTs, and so do our users. Our most recent NFT collection, the Legends collection, sold for $5 million in just nine minutes. Obviously, there is interest in NFTs and their use cases. It just needs a little accessibility push.Also, as NFTs become more popular due to these platforms, the versatility and profitability they provide to creators will become a real threat to existing markets. Why should a creator use YouTube or Patreon, when they can essentially run their business on the SocialFi platform without an intermediary? They’ll have an opinion about upcoming algorithmic changes, earn 100% of the revenue they deserve, and enjoy more freedom than traditional social media.As Meta and other companies push for NFTs and find new ways to showcase their use cases, we are bound to see makers leapfrog in large numbers in SocialFi. This is a natural evolution of the status quo – a status quo where centralized platforms benefit most from the work of creators. It makes sense for creators to evolve before that, and it’s only a matter of time before they do.