SocialFi: A Hybrid of Social Networks and Decentralized Finance
Date: 2024-07-23 Author: Gabriel Deangelo Categories: BLOCKCHAIN
SocialFi (Social Finance) is an innovative hybrid of social networks and decentralized finance (DeFi). Thanks to blockchain technologies, users will be able to better control their own content and personal data. Unlike traditional social networks, SocialFi does not have centralized management authorities, which eliminates the possibility of moderating and censoring content, as well as collecting information about users.
Monetization on SocialFi
One of the key features of SocialFi is the ability to monetize. Users can earn from social media interactions through various DeFi tools. Web3 technologies associated with economic incentives make it possible to create complex ecosystems where each participant can find their own niche and income.
Social tokens play an important role in SocialFi ecosystems. These utility tokens are used to create an economic ecosystem within applications. Moreover, social tokens can exist not only at the application level, but also at the user level. This allows celebrities and ordinary users to create their own tokens and mini-economies.
Examples of uses of social tokens include:
- Interaction with the author’s publications only if his token is available.
- Priority of comments based on the number of tokens.
- Possibility of direct communication with the author if you have a certain number of tokens.
- Premium access to content via social token subscription.
The Role of NFTs in SocialFi
Non-fungible tokens (NFTs) also play a key role in identifying and managing digital ownership on SocialFi. They allow authors to more effectively manage their intellectual property by selling works or receiving royalties. SocialFi could give new impetus to the development of digital art and offer new ways to use NFTs.
Decentralized Autonomous Organizations (DAOs) are responsible for managing SocialFi platforms. They ensure that no central authority controls user activity or changes the platforms' source code. Voting rights in the DAO that runs a large SocialFi platform can be quite valuable.
Most Expensive SocialFi Tokens
Theta Network
Theta Network is a decentralized video content network. The platform solves streaming problems through Theta Edge Network and Theta Blockchain. The project capitalization is $1.52 billion.
Galxe
Galxe provides Web3 identity and reputation solutions, giving users control over their digital identity and reputation. The project capitalization is $430 million.
Mask Network
Mask offers decentralized analogues to Web 2.0 features such as messaging and payments, providing a secure transition to Web3. Project capitalization: $248 million.
RSS3
RSS3 is a decentralized protocol for managing information feeds. It provides tools for creating and managing decentralized channels, including interaction with dApps and smart contracts. The project capitalization is $168 million.
Decentralized Social (DESO)
DESO is a decentralized social network on the blockchain that offers tools for content creation and management, user interaction, and activity rewards. Project capitalization: $150 million.
The SocialFi market is in its early stages, but its potential is enormous. Innovative ideas can fundamentally change the way we think about social interactions online. Current and future SocialFi projects can significantly accelerate their development when integrated with large social networks and platforms, allowing them to quickly enter the mainstream.
