Demystifying The Concept of Socialfi - A Blockchain Social Application
Updated: Sep 16, 2022
Burgeoning from the upswing of social networks and traction of our smart devices, every internet user leverages the participatory culture and features of the web. Technology is evolving and has experienced some innovative tweaks in the intervening years that theoretically gravitate towards a user-centric disposition.
The Metaverse, SocialFi (Social application for Digital currency operating on Blockchain), DeFi (Lending to Earn), and GameFi (Play to Earn) are all examples of decentralized inventions that combine the notion of motivating, protecting, and connecting internet users.
Today’s blog will demystify SocialFi - one of Blockchain's leading revolutions.
What is Socialfi?
Simply put, SocialFi is an abridged form of 'Social Finance' - a fusion of social networking and Finance advancements. This novel phenomenon evinces a blended variant of Web 3.0, finance, social tokenization, and the Blockchain, which serves as the internet's value layer. Through these permutations, SocialFi effectuates an environment where users -both entrants and established celebrities- are unbiasedly empowered with the capacity to earn from their diverse interactions.
Given the maniac-headlining of NFTs, Altcoins, and GameFi in 2021, SocialFi, currently on the verge of explosion, has theoretically shown the potential to significantly impact cryptocurrencies, Blockchain, and how people interact socially around the globe.
Essentially, this new social application is paving the way with its novel approach to fostering a productive social networking culture centered on helping users leverage and maximize the Blockchain.
With the emergence of the SocialFi ecosystem at its nascent stage, this social paradigm rectifies myriads of potential opportunities and conventional inadequacies.
Opportunities/Benefits of Socialfi
SocialFi relies massively on the authenticity and tamper-proof feature of the Blockchain, which is exceptional for tackling quotidian issues of data access confirmation. SocialFi has become a relatively new crypto niche sharing a similar perspective to DeFi, where users wield proprietary rights to their assets.
As more internet users become interested in the content creation business through daily interactions, this disruptive user-centric social program rewards users with "financialization and tokenization" of their online social exploits. You could earn incentives from reporting, commenting, creating content, or any form of online engagement. How cool is that!
SocialFi espouses decentralization and is set to combat one of the biggest daily problems in these social systems - Monopolies.
Social media agents pave the way for billions of users to gain traction but still dictate and control values generated by our social paraphernalia behind closed doors. Big guns in the social media industry like Meta invariably give room for established content creators to dominate and almost vanquish various attempts by upcoming creators, thereby heralding a monopoly for value generation. With SocialFi, there won't be a need for these middlemen in social interactions, and users are empowered to control all the values generated by the system.
Privacy and Security
Being centered on blockchain technology, SocialFi imbibes pseudonymity or anonymity in users' identity and information, thereby safeguarding the confidentiality of its users. New entrants and already established celebrities won't be required to provide identification for any sign-ups or account registration, thereby circumventing the various vulnerabilities associated with many operators' back-end data repositories.
The emergence of SocialFi will effectively provide a safe, decen