SocialFi, as the title may suggest, brings together the worlds of social media and DeFi (decentralized finance). So, a SocialFi platform would essentially welcome a decentralized aspect to the activities of creating, managing, and owning the various content users create on the social media of today’s internet.
Now, what is the issue with web2 social media, and why is decentralization an immediate necessity in the world of social networking? We’ll find out the answers to those in this post, but first the big question: What is SocialFi?
What is SocialFi?
So, what is SocialFi is a platform that combines features of web2 social media and decentralized finance. A very common saying has come about for the social media platforms we know today, “If the product is free, you are the product.” This is because all the content, engagement, and data generated on platforms like Facebook, Instagram, and Twitter today are monetized by only a few centralized entities. These platforms also hold the power to ban content creators instead of creating an ecosystem with true freedom of speech.
Further, web2 social media suffers greatly when it comes to digital ownership policies and the power to track an asset’s ownership. The lack of a solid system in place regarding the same opens up many, many chances for the digital piracy of content.
This centralized authority of social media in the current age is something SocialFi intends to eliminate in the first place. So, what are the guiding principles these brand new SocialFi platforms are based upon? Let’s find out!
What are the features of SocialFi?
The many features of SocialFi include:
- The general aim of SocialFi platforms is to allow content creators and other articipants complete control over their own data.
- In addition, the target of what is SocialFi is also to let users have genuine freedom of speech and the power to monetize their social media presence as they see fit.
- With the integration of DeFi, the monetization part can be easily taken care of with cryptos.
- In SocialFi, identity management, digital ownership, and the integrity of the content being produced can all be taken care of with the help of NFTs or non-fungible tokens.
- SocialFi platforms are based upon a DAO or decentralized autonomous organization structure to prevent centralized censorship.
- With the advancement in blockchain technology, SocialFi also brings an extent of scalability to social media that web2 infrastructures haven’t been able to so far.
What are some popular SocialFi tokens?
What are some top web3 SocialFi platforms users should know about in 2022? We have compiled a list of popular SocialFi tokens and platforms to answer that very question!
⦁ PeakD
PeakD facilitates the usage of two of the most popular SocialFi tokens- HIVE and HBD (HIVE-backed dollar). The platform is one that offers all content creators and users an immersive experience of SocialFi through blockchain and decentralization. PeakD uses something called a ‘blockchain key’ for user safety, which is essentially a password a user needs to have to access their account. The reward system used by the platform makes room for votes on posts made, and users are rewarded with the aforementioned tokens on the platform.
⦁ ApolloFi
The very protocol to introduce the popular SocialFi token APO, this one is a SocialFi platform run on the policy of ‘social to earn’. The platform is designed in particular for users based upon Ethereum, Polygon, and the BNB Chain. The social to earn model of ApolloFi brings simple and useful social tools so creators have an easy time generating content and increasing engagement.
⦁ Chingari
GARI is one of the most popular SocialFi tokens, based upon a web3 application known as Chingari. One of the SocialFi platforms that have been around for a while now, Chingari is a short video creating and sharing platform launched back in 2018. Its operations are similar to the likes of TikTok; in fact, the platform is well known as the ‘TikTok of India’. The ecosystem has two major offerings: the Chingari app, and the GARI network.
Reportedly, the Chingari app has over 100 million downloads across several platforms already.
⦁ Ecency
Ecency was created back in August 2016 on the Hive blockchain. On this SocialFi platform, all content created is immutable, uncensored, and provides full control to the users. All content creators are rewarded for their offerings and engagement on the platform, and over time, the same users can become innovators and investors. Ecency rewards its content creators with the popular SocialFi tokens of the Hive blockchain- HIVE and HBD, as well as Hive Power.
Conclusion:
SocialFi platforms, like all other aspects of web3 in general, are still in the earliest stages of development, and they require better, more secure infrastructures and economic models to truly achieve their goal of handing power back to users. However, the point still stands that this very creator-based economy of SocialFi is exactly what is needed in the upcoming age of the internet. With the correct market sentiments and investment prospects for SocialFi projects, the future of decentralized social media looks quite bright indeed.
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Disclaimer: Cryptos are unregulated virtual assets, not a legal tender and subject to market risks. The views and opinions expressed in the article are those of the author(s) and don’t represent any investment advice or WazirX‘s official position.
Also Read | What is DeFi? Popular DeFi protocols