SocialFi is a groundbreaking invention which is helping to create an innovative digital ecosystem. It allows creators to enjoy monetary benefits of their creations. Web 3.0 social media and SocialFi transfer the centre of data control from the database of big tech companies into the hands of content creators or social media users. They provide you with more freedom and greater utility. They are said to transform not just the digital landscape but the entire economic ecosystem of our world.
According to a survey, more than 50% people spend around two and a half hours on social networking platforms every day. This reflects the impact that various social media platforms have on our lives. However, even when these platforms are such a huge part of our lives, we are not able to control our information. All the data, interaction, management, and monetization of content is controlled by a few central authorities. But Web 3.0 changes that. The new web is, thus, clearing the path for an immersive and democratic Web 3.0 Social Media. And with the emergence of this new, decentralized social media, enters the concept of SocialFi.
What is SocialFi?
SocialFi is created to bring together the principles of social media and decentralized finance (DeFi). With SocialFi, users are able to create, curate and monetize their online presence. SocialFi is not only able to reward all users for their communities’ activity. It also helps users monetize their contents by connecting them directly with brands and influencers. It will will change all crowd-based interactions to token-based eco system. SocialFi is a new way of rewarding your social media interactions and engaging with your community in a token-based ecosystem. With SocialFi, you can keep track of your social media analytics and get rewarded for the time you spend engaging with other people.
Web 3.0 has given rise to a new kind of financial system known as Decentralized Finance or DeFi. DeFi is an umbrella term used for all financial applications and projects which are built upon blockchain. This concept has now evolved into more advanced concepts of GameFi and SocialFi. As you may have already guessed, these two phenomena are niche based financial systems that bring great monetary value to the otherwise non-financial platforms. What was earlier meant for leisure time has now become a source of income.
SocialFi merges the applications of Decentralized Finance with the fundamentals of social media. It provides a Web 3.0 based solution for the creation, management, and ownership of content. It provides creators with a better control over their data and the ability to monetize this data. It consolidates the creator economy, realizing its prominence in the digital world.
Here’s how it works. SocialFi allows you to earn an income by means of participation in decentralized activities such as communication, gaming, NFT minting, etc. It offers you direct monetary benefits for sharing quality content. Most SocialFi platforms use digital tokens. These are known as SocialFi tokens and are used to facilitate transactions and trading. These platforms reward you for exercising social influence over various networking platforms. You gain valuable incentives by publishing and sharing useful content.
The Relevance of Web 3.0 Social Media
In the world today, privacy and security are the most talked about topics. There have been rising concerns over the massive database of tech giants such as Facebook, Amazon, Google, etc. Web 3.0 social media is targeted at breaking this hegemony. The basic idea behind the decentralized social media is to transfer the ownership of content to its actual creator. It ensures that only the creator can control and monetize their data. This principle forms the very base of SocialFi.
SocialFi empowers you with the power to monetize your data and the underlying social influence. Generally, in case of Web 2.0 social media platforms, you lose the ownership rights of your content on publishing. However, same is not the case in Web 3.0 based platforms. They provide you the option to earn real currency for your content contributions. Furthermore, the time that you spend engaging in various activities over web 3.0 social media platforms adds to your social value.
In addition to this, you also get to be a part of various decision-making processes over SocialFi platforms. These platforms empower you with the right to vote. You can cast a vote by utilizing your social tokens. That’s right. You can vote on proposals or direct the future of a social project.
How Blockchain Technology Relates
Blockchain technology is key to the emergence of the new wave of social media networks. Whether it is Web 3.0, NFTs or SocialFi, each of these revolutionary innovations have Blockchain as their backbone.
Blockchain based social media is all the rage in the world today. These platforms address the issues of data scams, privacy breaches, uninformed algorithm changes and unnecessary content censorship. In adition, they bring in the possibility of SocialFi. Blockchain makes it possible to tokenize the social influence of users over these platforms. Therefore, blockchain social media networks allow you to generate an income by contributing content and engaging in conversations. They, thus, consolidate the SocialFi ecosystem.
Furthermore, blockchain based social media platforms provide a great degree of privacy. You are free to express your thoughts without any fear of regulation or data leaks. It will not be wrong to conclude that blockchain provides for a democratic and free internet. It offers great value to both the content creators as well as the social media users.
Understanding SocialFi Crypto Projects
Crypto projects have been taking over almost every industry. Whether it is logistics, IT, finance, or social media, the blockchain-based currency has found an application everywhere. Especially, when we look at the social networking sector, SocialFi crypto projects like Mask Network and Coinverse are becoming popular.
With SocialFi crypto projects, social media is quickly getting integrated onto the blockchain ledgers. This shift of data onto immutable ledgers has resulted into the decentralization of data. This phenomenon has the power to revolutionize the way this world operates. They can assist social media industries to improve their underlying efficiency and security. They do so while also offering incentives for user participation.
The SocialFi crypto platforms allow creators to build dedicated communities as per their niche. They can use these communities to increase their influence and monetize their content. These days, there are several platforms which have emerged so as to make it easier for the influencers to gain monetary benefits from their social participation and impact.
As the concept of SocialFi continues to establish its dominance, more and more phenomena are arising out of it. The most recent modification in this direction is the emergence of Metaverse. It has further solidified the SocialFi crypto projects. The Metaverse is an important step towards integrating NFTs into the social networking platforms. The Metaverse aims to create interconnected virtual worlds to provide users with an immersive experience. It is proving to be a revolutionary innovation for the creators’ economy. It will be interesting to see what new innovations arise as SocialFi continues to evolve.
SocialFi Tokens and NFT
SocialFi has come into existence to address the gap between what is good for the social networks and what is good for the users. It combines the existing capabilities of social media with the innovative solutions presented by Blockchain technology and NFTs.
The concept of SocialFi is based upon shifting the helm of creators’ economy. It takes power from the hands of marketers and shifts it to the content creators and brands. Creators are empowered to own all the digital assets that they contribute to the social media platforms.
SocialFi tokens and NFTs make it possible for the brands to come up with transformative social media marketing strategies. It also ensures that these strategies match the requirements of Web 3.0 social media. Since the SocialFi tokens and NFTs are built upon blockchain, they make for digital proof of ownership of any real-world object or a piece of content. Therefore, they facilitate a smooth, secure, and easy trade of digital content.
These SocialFi tokens derive their value from the growth of the digital landscape. As multiple creators come, share content and establish communities over digital platforms. With each of these activities, their social influence increases and gets tokenized. This tokenization of content creates a new and exclusive ecosystem that is more user-oriented. It encourages people to contribute more to the digital ecosystem by rewarding their contributions.
Let us explain how it works. Every time a digital content creator transmits their creative outputs on the web, they can utilize various opportunities presented to them by the social tokens. They can leverage these tokens to align their content with the interests of their communities. However, the creators must look out for various SocialFi crypto projects that operate on pump-and-dump mechanisms. These projects offer great short-term value but they often take a toll on the number of followers.
Different Types of SocialFi Tokens
Depending on their function, there are various SocialFi tokens present in the world today. There are personal tokens, community tokens, participation tokens, etc. Although each of them serves a different function yet all of them emphasize on the content and value brought in by the users.
Personal Tokens: These tokens are generated by individual users to provide value to the different forms of labor. For instance, $ALEX is a SocialFi token which reflects the potential of the budding crypto entrepreneur Alex Masmej. This is a new form of experimentation and is often referred to as a “human IPO”.
Participation Tokens: These tokens enable users to participate in all the potential upside activities of a group. For example, the SocialFi token $SWAGG backs the SWAGG Network creations. It covers all the community-based products. It includes both the Forefront as well as the upcoming products.
Community Tokens: These tokens are dedicated to communities. They help in managing memberships. $JAMM is a wonderful example of a community social token. It is required to get access to the company’s discord and newsletter. It also allows users to enjoy other such benefits in the Jamm Session landscape.
GameFi vs SocialFi: Which is More Powerful?
GameFi is another powerful phenomenon emerging out of Decentralized Finance. In a GameFi ecosystem, a user can earn money by playing blockchain games. Today, literally every game can be transferred to blockchain. GameFi is a wonderful concept that has made gaming a full-time job.
However, there are certain limitations to how much a user can gain out of GameFi. For starters, a player must make some initial investment in NFT to participate in the play-to-earn universe. Furthermore, there is a limitation to how much a player can earn in a single day. Therefore, most users are not able to derive much value out of GameFi.
On the other hand, SocialFi is free of any such restrictions. There is no bar on how much social influence a user can exercise. The user can earn as much as their social value allows them to. There are no hidden costs and no upfront investments required.
Top 12 Socialfi Projects
Have a look 👇
Genopets is the world’s first Free-to-Play, Move-to-Earn NFT mobile game on Solana that makes it fun and rewarding to live an active lifestyle.
Learn more – https://www.genopets.me/
The go-to platform for Creators & Communities to build independent, digital economies. Community members can earn tokens by sharing their insights and content, inspiring innovators across the globe to build valuable digital collectibles through patent pending NFT toolkit, which allows to focus on true passion: building a community of creators & innovators who share our vision of empowering the individual by decentralizing power and value in the hands of everyone.
Learn more – https://rally.io/
STEPN is a web3 lifestyle app with social & game elements. It is designed for young adults, who enjoy entertainment and want to be active in the community by sharing fun experiences with others.
Learn more – https://stepn.com/
Audius is a fully decentralized music platform that allows anyone to listen to their favorite artists and support them directly. With Audius, musicians get paid more, listeners get better sound quality and enjoy more music, while curators connect people with the best creators in the world.
Learn more – https://audius.co/
FreeCity is a chat to earn app built on polygon network. Users can earn based on their social interaction.
Learn more – https://www.free-city.io/
Yuliverse is socialfi AR metaverse on BSC chain.
Learn more – https://www.yuliverse.com/
7. MetaLife Social
In MetaLife users can build their own metaverse to socialize, play, create, & work to EARN.
Learn more – https://metalife.social/
8. Palmare | SportFi & SocialFi
Palmare is web 3 sports app with socialfi and gamefi elements. Through this trainers can connect with their communities in web 3 era.
Learn more – https://palmare.io/
Thinkin is a community based socialfi platform where you can share your insights and writings to earn token.
Learn more – https://thinkin.ink/
10. Global Guide
Global Guide is the first Dapp Socialize-To-Earn concept in crypto. Users can earn tokens by sharing photos and doing reviews for the location they travel.
Learn more – https://globalguide.app/
Crypter is a social media platform dedicated for crypto enthusiasts. It is the bridge between traditional social media and web 3 social media.
Learn more – Crypter
SnailiX is a A virtual world, based on blockchain technology with elements of organizing social processes, where players are rewarded for their activity from decentralized tokenomics.
Learn more – https://snailix.app/
With the arrival of Web 3.0 and Metaverse, there has emerged a powerful concept of Decentralized Finance. Decentralized Finance or DeFi is a blockchain-basedecosystem. It has further given birth to the more differentiated and advanced phenomena of SocialFi and GameFi. On one hand, GameFi has created a new universe for the gaming world. SocialFi, on the other hand, has revolutionized the entire digital world. It allows users to make an income out of their social influence. Users can earn money with the help of tokenized digital assets. These tokens help users in establishing ownership over the pieces of content created by them. They also help creators to control, manage and monetize their data.