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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

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