Cointime

Download App
iOS & Android

From ‘Likes’ to ‘Rewards’: How Web3 is Disrupting Traditional Social Media Model

Validated Project

Over the past decade, social media platforms have revolutionized social interactions for people looking to connect with friends, family, and like-minded individuals and communities. Since the dawn of MySpace and Facebook, social media has provided us with an unprecedented level of connectivity and has opened up a world of opportunities for businesses to connect with their customers. However, with the rise of Web3, traditional social media platforms are being forced to rethink their models in order to stay relevant in a rapidly evolving digital landscape.

Web3, also known as the decentralized web, is a new iteration of the internet that is built on blockchain technology. It offers a range of new features that traditional social media platforms are unable to provide, such as increased security, privacy, transparency and control over personal data. Web3 allows users to take ownership of their online identity and data, and provides them with greater autonomy over their online presence.

One of the greatest advantages of Web3 is the ability to reward users for their contributions to online communities. Instead of relying on traditional advertising models to generate revenue, Web3 platforms use cryptocurrencies and tokens to incentivize user participation. This means that users can be rewarded for creating content, engaging with others, and contributing to the growth of the community.

The rise of Web3 has led to the emergence of a new generation of social media platforms that are built on blockchain technology. These platforms offer a range of new features and benefits that are not available on traditional social media platforms. They allow users to take ownership of their online identities and data, and provide them with greater control over their online presence. Some examples include:

  1. Brave Browser: The Brave Browser is an example of an open-source web browser that incentivizes users with Basic Attention Tokens (BAT) for watching ads. With its built-in support for Ethereum apps and web wallets, it offers a secure and efficient way for users to access Web3 applications.
  2. Decentraland: Decentraland is a platform on the Ethereum network where users can purchase land parcels and build their own virtual reality experiences. The platform enables users to create a wide range of experiences, including gaming areas, shops, galleries, parks, or anything the user’s mind conceives.
  3. ySign: The decentralized app called ySign offers users a way to communicate securely online through real-time chats that use end-to-end encryption algorithms to safeguard their privacy. A key feature of the app is its “multi-signature process,” which requires all parties in a conversation to sign off on a message before it can be decrypted and sent through the network. This ensures that user data privacy is protected to an even greater degree.
  4. Mirror: Mirror is a platform for publishing on Web3 that prioritizes user privacy and decentralization. It provides users with the ability to generate and distribute their own content, as well as manage their work’s monetization. The platform employs smart contracts to empower creators to sell their content directly to their followers, bypassing the need for intermediaries such as conventional social media networks or publishing platforms.

In these decentralized models, there is no central authority that controls the platform. Instead, these social platforms are powered by a network of nodes that work together to verify transactions and maintain the platform. This proposes several implications for social media.

One of the most significant changes brought about by Web3 is the concept of fair compensation. In a traditional social media model, the platform owners and advertisers are the ones who reap most of the benefits. However, in a decentralized model, users and creators are compensated directly for their work. This compensation is usually in the form of cryptocurrencies or tokens.

For example, the Basic Attention Token (BAT) is used on the Brave browser, a privacy-focused web browser that blocks ads and trackers by default. Users can choose to view ads if they want to, and in return, they are compensated with BAT. Creators can also receive BAT for their content if users choose to tip them or support them through the platform.

This model has several advantages over traditional social media platforms. First, it allows for a fairer distribution of wealth. Instead of the platform owners and advertisers reaping the benefits of user attention and data collection, the end-users and creators are directly rewarded. This incentivizes users to create quality content and engage with the platform.

Second, it advocates for user privacy. By default, the Brave browser blocks ads and trackers, which protects user privacy. Users can choose to view ads if they want to, but they are compensated for their attention. This creates a more transparent and ethical system where users have control over their data and how it is used.

Lastly, it promotes transparency. Since the Brave platform is decentralized, there is no central authority that controls it. This means that users can trust that their data is not being sold to third-party advertisers or misused in any way. Decentralized social media platforms provide a more secure and trustworthy alternative to traditional social media. Although each set of advantages comes with its own set of drawbacks.

Navigating the Drawbacks of Decentralized Social Networks

The lack of standardization in the Web3 and decentralized social media industry can create confusion among users, as each platform has its own unique token or cryptocurrency. This can be a barrier to adoption and hinder the growth of the industry. To navigate this shortcoming, developers and industry leaders can work together to establish common standards and protocols that make it easier for users to understand and navigate the different platforms.

In addition to the lack of standardization, the absence of regulation in the industry can also pose challenges. Without a central authority to oversee and regulate the platforms, issues such as fraud, security breaches, and user safety can arise. To address this challenge, developers and industry leaders can collaborate with regulators and policymakers to establish appropriate regulations and standards that ensure the safety and protection of users. This may involve the creation of industry associations, self-regulatory organizations, or partnerships with governments and regulatory bodies to establish clear guidelines and best practices for the industry.

Despite these challenges, Web3 and decentralized social media platforms are set to revolutionize the way we interact with social media. By promoting impartial compensation, user privacy, and transparency, these platforms promise a more ethical and sustainable alternative to the centralized social media structure.

Tools for Building a Decentralized Future

In essence, Web3 and decentralized social media platforms are set to transform the social media landscape. By compensating users and creators directly, promoting privacy and transparency, and offering a more ethical and sustainable alternative to traditional social media, these platforms offer a bright future for the industry. While there are still challenges to overcome, the potential benefits of these platforms are too great to ignore. Decentralized social media has the potential to shift the power dynamics of the industry, putting users and creators at the forefront. This is especially important as concerns over privacy, security, and data ownership have become increasingly prevalent in recent years.

In order to meet the demands of the rapidly-evolving Web3 landscape and the increasing need for scalable and reliable blockchain solutions, Chain offers an array of blockchain-based solutions for enterprises and entrepreneurs alike. By providing a comprehensive suite of tools and resources for developers to build and deploy innovative Web3 products, Chain is playing a crucial role in driving the growth of the decentralized platforms that will shape the future of social networking.

As the industry continues to evolve, we can expect to see more innovative solutions and new models of social media emerge. The future of social media is decentralized, and we are only just beginning to see what this new era will look like. To get a headstart in the new paradigm of social media and the internet, visit https://www.chain.com.

Read more: https://medium.com/@chaininc/from-likes-to-rewards-how-web3-is-disrupting-traditional-social-media-model-a4b3d4f0f2bf

Comments

All Comments

Recommended for you

  • Farcaster's social client Kiosk completes $10 million financing, led by Electric Capital

    Farcaster's integrated social client Kiosk has announced the completion of a $10 million financing round on the X platform, led by Electric Capital, with participation from a16z Crypto, USV, and Variant Fund. Kiosk aims to promote community building and commerce within applications, enabling creators to establish communities, share rich media content, mint NFTs, interact with like-minded individuals, and seamlessly customize channel economics, while emphasizing the integration of on-chain assets into social interactions and envisioning a more inclusive and interconnected Web3 experience.

  • A whale sold 224 WBTC worth $14.4 million in the past three hours

    According to on-chain analyst @ai_9684xtpa, address 0x486...1505e sold 224 WBTC tokens worth $14.4 million through Cowswap in the past three hours, making a profit of $830,000 (selling at an average price of $64,203). The seller had bought 371 WBTC tokens at an average price of $60,504 between November 2023 and April 2024, and still holds 280 WBTC tokens.

  • CryptoQuant CEO: BTC needs to remain above $80,000 for miners to remain profitable after halving

    Bitcoin mining revenue significantly decreased in May due to the impact of the fourth Bitcoin halving event. On May 1st, the total revenue from block rewards and transaction fees reached a new low of only $26.3 million.CryptoQuant CEO Ki Young Ju calculated that, based on current conditions, Bitcoin needs to stay above $80,000 for miners to remain profitable after the halving. However, most miners have taken proactive measures to upgrade their mining equipment to lower long-term operating costs and remain competitive.

  • BTC returns to above 65,000 USDT, up 2.08% in 24 hours

    OKX market shows that BTC has returned to above 65000 USDT, now reporting 65102 USDT, with a 24-hour increase of 2.08%.

  • Hundre Finance attackers have withdrawn 162.2 ETH worth of crypto assets from Curve

    According to PeckShield monitoring, the attacker of Hundre Finance withdrew 784,000 3Crv from Curve and exchanged it for 273 ETH. In addition, they also exchanged 305.6 WOO, 39 PAXG, 200,000 FRAX, and 100,000 DAI, totaling 162.2 ETH. The attacker then bridged 1,034 ETH (2.17 million USD), 842.8K DAI, 1.11 million USDT, 1.27 million USDC, and 457.3 FRAX from Optimism to Ethereum. They also exchanged a total of 480,000 USDC for 142.6 WETH, 306 WOO, and 39 PAXG. They also exchanged 1.11 million USDT for 500.3 thousand USD worth of DAI and 613.8 thousand USD worth of FRAX. Additionally, on April 15, 2023, approximately 786,000 USD worth of USDC was added to Curve3Pool.

  • LayerZero co-founder: "Self-reporting of witch activities" is not aimed at individuals, but at industrial witch studios

    Bryan Pellegrino, co-founder and CEO of LayerZero, stated on social media that the "Self-Report Sybil Activity" is not targeting individual users, but rather large industrial witch farms (studios).Earlier, LayerZero Labs launched the "Self-Report Sybil Activity" plan, which allows witch addresses to self-report related addresses on a designated page and receive an expected allocation of 15%, without answering any questions. The deadline is May 17th, 19:59:59.

  • Argentina’s House of Representatives Passes Bill to Regularize Cryptocurrency Taxation

    The Argentine Chamber of Deputies has passed a cryptocurrency tax normalization bill aimed at advancing a series of important government reforms. The bill introduces the possibility of regularizing previously undeclared cryptocurrency assets, up to a maximum of $100,000, without paying government collection fees. However, if the value of cryptocurrency assets exceeds this limit, the government will apply preferential tax rates based on the taxpayer's declaration date.

  • Blockchain Asset Management announces launch of a dedicated blockchain fund for accredited investors

    Blockchain Asset Management, a cryptocurrency fund with a scale of $100 million, announced the launch of an exclusive blockchain fund for qualified investors. The specific amount of funds raised by the fund has not been disclosed yet, but it is said to have reached "eight figures", which means it is in the tens of millions of dollars. In addition, the investment threshold for the new fund is $100,000, and all investors are required to meet the approved standards (annual income exceeding $200,000, net assets exceeding $1 million).

  • Barcelona-based Web3 Video Games Startup GFAL Raises $3.2M in Seed Funding to Expand Team and Accelerate Production Plans

    Barcelona-based startup GFAL has secured $3.2 million in seed funding from investors including Supercell Ltd and Mitch Lasky. The company plans to use the funds to expand its team and accelerate its game production plans, which leverage AI and Web3 technology for immersive gameplay. GFAL's Elemental Raiders mobile game soft-launched in March 2023, with plans to build on this for a 2024 launch. CEO Manel Sort expressed gratitude for the investment and excitement to work with former colleagues from Digital Chocolate.

  • Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference, suggested that Hong Kong refer to IPO to provide innovative financing models for Web3

    Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference and a member of the Hong Kong Legislative Council, wrote an article in the Hong Kong Wen Wei Po titled "Leading the Digital Economy by Adapting to the Web3 Trend". The article pointed out that developing Web3+ has both advantages and new challenges. The Hong Kong government has taken an important step in the direction of developing Web3 and the digital economy by formulating a short- to medium-term strategic development blueprint, ensuring that policies and resources are in place, and promoting the construction of Web3+ application scenarios. Focusing on Web3, establishing an international innovation financing platform can not only help Hong Kong leverage its traditional financial advantages, but also help it become a global digital technology center. It is suggested to refer to the mature mode of existing enterprises' IPOs in Hong Kong, provide an innovative financing model for Web3, and create a market trend and service competitive advantage to promote the development of the industry and attract upstream and downstream of the industry chain at home and abroad to gather in Hong Kong.