SocialFi Will Be The Next Big Thing in Web3.0 World?
Web 3.0 has been making rounds for quite some time now. We have all heard about the intelligible technology that possesses the power to change our world for good. The craze for the non-fungible tokens has put decentralization and Web 3.0 further ahead in the line. All of us are trying to follow latest updates in this ground-breaking innovation. But whenever we try to learn about it, we get befuddled by this haze of technical terms.
What exactly is Web 3.0? And are there also Web 1.0 and Web 2.0? If so, how is Web 3.0 different from them? How is Web 3.0 better than them? And how will it transform our lives? There are many questions surrounding the technology. These questions have become the talk of the town. But where are the answers? Here, we will try to find them one by one.
Evolution of the Internet- from Web 1.0 to Web 3.0
By far, the internet is the paramount technological revolution which has taken the world by a storm. Back in 1991, when Tim Berners Lee introduced to us the world wide web as a collaborative medium for people to meet, read and write, none of us realised how much humanity would become dependent on this widespread network.
Tim Berners Lee’s internet was the Web 1.0. It was primarily dominated by portals such as Yahoo, AOL, CompuServe, etc. In the era of Web 1.0, there were very few content creators. People generally used it to gain knowledge, acting simply as content consumers. This changed with the advent of Web 2.0. The internet was transformed into a platform where applications were built upon the web itself.
Web 2.0 brought along massive participation of users in content creation by introducing blogs, social media networks, etc. These platforms were driven by user-generated content and shook the domain of mass media. As a result, businesses started to rely on the internet to reach out to their consumers. Engagement became an important segment in business models.
The internet became a major market and user data became the new gold. This led to centralization of internet, where the web was dominated by tech giants such as Google, Amazon, Facebook etc. These companies started accumulating user’s data into huge databases. This hoarding of data without the consent of users became a major social issue in the world.
Users all around the world raised various privacy concerns. These rising concerns called for the establishment of a decentralized Web.
Understanding Decentralization and Web 3.0
Five years ago, Tim Berners Lee came up with yet another innovative solution in the form of Semantic Web. The idea was to provide human-like tendencies to computers meaning that the machines would consume and process data just like humans. However, the Semantic Web could not be materialised due to multiple reasons. But Berners Lee’s idea provided the foundation for the creation of a decentralized web.
This idea was eventuated in the form of Web 3.0. Many are of the view that the Web 3.0 is a return to the original web where there is no central authority regulating or monitoring the internet. In simpler terms, there is no “kill switch.” With the objective of decentralization at its heart, Web 3.0 is a user-centric system where individuals are the rightful owners of their data.
Web 3.0 is built upon technologies such as Artificial Intelligence, Machine Learning with blockchain as the backbone. Blockchain’s distributed ledgers and storage features make room for data decentralization. It helps in the creation of a transparent, secure and fair online environment.
The decentralized web creates a real-world human connection and enables the users to own, protect, control and monetize their digital content. In fact, data ownership and compensation is one of the most imperative contributions of Web 3.0.
Why is Web 3.0 Important?
The first and foremost advantage of Web 3.0 is data ownership. It empowers users to have full control over who can use and benefit from their data. As already established, Web 3.0 is backed by Blockchain. Therefore, all the content put over the network by a user will be fully encrypted.
This means that users can control whether or not they want to share a given piece of information with advertising agencies. They can also earn by sharing their data. Web 3.0, therefore, offers greater utility.
The next big feature of Web 3.0 is that it breaks the hegemony of the massive databases owned by giants such as Google, Facebook, Amazon, etc. It prioritizes data privacy and fairness. It aims to establish an inclusive internet where data is not controlled by any central entity.
In a world where public trust and data privacy are growing concerns, Web 3.0 offers a simple and secure solution. Another advantage of a decentralized internet is a free and fair web. It democratizes the internet by removing the need for any central authority.
It eliminates the possibility of a user getting banned because of their gender, geographic location, orientation or any other such social factor. It creates an equitable and inclusive internet.
In addition to all the above benefits, the new web also provides easy access to information from anywhere at any time. Now, a user has access as much access to information as possible. It provides a smarter internet and offers far greater utility, taking internet beyond just social media and online shopping.
By reducing the reliance on centralized data repositories, Web 3.0 helps in curbing the risks of hacking and data leaks. Moreover, the availability of tokenized digital assets makes it possible for users to track their digital footprints.
Applications of Web 3.0
Web 3.0 has already found its way into many real-world applications. The technology is already being used in the domains of education, virtual assistance, social networking, browsing, and many more. It has made routine activities easier by personalized recommendations.
Let us look at a simple example to understand it better. Suppose that you need to place an order for grocery at your nearby departmental store. Your digital assistant will connect to your smart household devices such as fridge to check if you are running out of certain items.
Based upon this interaction, it will prepare a list and forward it to your nearby departmental store. Thus, all you need to get groceries is give a command to your virtual assistant to place a grocery order for you. It will take care of the rest.
You will never have to worry about forgetting to buy your daily staples. Another example of how an immersive internet can make your life easier is personalized recommendations. For instance, if you are planning a trip, your digital assistant can help you finalize the dates most suitable to your schedule.
It can also help you find flights and hotels suitable to your needs and budget. Not just your lifestyle, the immersive web is said to revolutionize every social and technological domain in the world. Whether it is cryptocurrency, metaverse, NFT market, games, social audio apps or blockchain games, Web 3.0 has a role to play.
The main application of Web 3.0 comes in the form of Decentralized Finance, known as DeFi. DeFi aims to democratize the financial system by facilitating peer-to-peer transactions. It is aimed towards removing intermediaries from financial transactions by recording and conducting financial transactions over blockchain networks.
It facilitates easier lending, borrowing and trading. It will not be wrong to say that Web 3.0 can completely demolish the traditional financial ecosystem. But we are still a long way from there.
Web 3.0 is a much-needed technological revolution in the world today. It will play a big role in breaking the monopoly of companies like Google, Facebook and Amazon, who are collecting user data in their gigantic databases.
Over the past few years, there have been several rising concerns over the misuse of private information of a consumer without their consent. Furthermore, it returns the ownership of data to it’s rightful owner, that is the original content creator.
It ensures that only the original creator can own, control and monetize their content. It, thus, creates a whole new economy, commonly known as the “creators economy.” It is a just system which ensures credit where it is due.
The web 3.0 is a promising solution to all the rising concerns in the world today. Whether it is about who will profit from a given information and who will control what content is appropriate to be shared over the web. It democratizes the digital world in ways, we did not think possible. It is a necessary first step towards the establishment of a just, equitable and all-inclusive online world.
“There is nothing permanent except change”
Ever since its advent in 2008, Blockchain has taken the world by storm. A peer-to-peer network which was introduced to us as a virtual currency system, it has been fundamental in the economy’s digital transformation. It has given birth to the concept of Tokenomics.
Tokenomics began from Decentralized finance and soon creeped into creativity, gaming, fitness and practically every other dimension of the human life. After DeFi, NFT, GameFi and Move-to-Earn, SocialFi is the next hot thing in the world of blockchain projects.
What exactly is SocialFi?
It is no rocket science to figure out that it is a combination of social media and finance but how exactly does it work? And how is it better than other blockchain financial projects such as move-to- earn?
SocialFi is soon transitioning to social networking plus decentralized finance which aims at creating decentralized social applications. These applications create a degree of social influence on platforms that can be tokenized. It allows social influencers to directly monetize their networks on SocialFi platforms. In simple terms, it helps users make an income through content creation.
Unlike the traditional social media networks, SocialFi offers to its users high degree of privacy and security as it operates on distributed blockchain ledgers. As SocialFi continues to gain momentum, more and more companies keep entering its sphere.
Tech giants such as Facebook, Twitter, Reddit, YouTube, etc, are all expanding their integration with NFT. If we look at Facebook, it is making continuous strides towards Web 3.0 and SocialFi, announcing that it is constructing world’s biggest metaverse. Recently, Twitter introduced a new feature that allows users to flaunt their NFT as their profile picture.
Scope Of Socialfi In Future
But why do tech giants have such an intriguing interest in this evolving technology? One of the reasons behind this is that in the digital world, the traditional norms to regulate and administer finances will not work. The Digital economy calls for a new system to monitor and exercise administrative control.
Therefore, major players in the digital sphere have been on a hunt for a new financial ecosystem that can address the longstanding copyright issue on social media and help direct profits to the rightful owner of the content. SocialFi seems to be the perfect result for this search.
It can secure a users’ personal interests in the digital landscape. It can address the Copyrights issue by means of establishing digital identities and make allowance for users to track their digital footprints. It also allows content creators to earn money by means of social interactions.
Here are top three ways in which SocialFi can turn the financial world upside down:
Data Rights Attribution
SocialFi Networks leverage blockchain technology to organise data insights of users in the form of highly secure blocks. These blocks are protected by cryptographic hashes which makes them unalterable. Therefore, the collection of user data in SocialFi is highly transparent, safe and untamperable.
Since there are no intermediaries involved in the SocialFi landscapes, there is no one to benefit from a users’ data. The user receives full ownership of their data. This means that a user has the right to own, control and monetize his/her assets at his/her own discretion.
Privacy and Security
The SocialFi blocks are highly anonymous in nature, thereby, protecting a users’ identity and other information. It, thus, helps in promoting privacy and security. In addition, the presence of cryptographic keys saves data from the risk of hacking and any sort of data leaks.
We will not be wrong to say that decentralization, openness and user control lie at the heart of SocialFi. It does not allow any major operators to control user data but redirects the centre of control to the original creator. It ensures that ownerships rights remain with the rightful owner of any piece of information.
Unlike the move-to-earn or play-to-earn applications, the SocialFi applications do no need a user to fork out any amount of money to start earning. The move-to-earn games require a user to make an initial purchase of NFT assets. For instance, in case of STEPN, a user has to purchase NFT Sneakers before they can start earning.
Although a move-to-earn is a good way to motivate users to stay active, but a user is technically exchanging their personal information to earn tokens. As opposed to this, SocialFi tokens are supported by a users’ personal reputation or brand.
Besides the heavy initial investment, the move-to-earn applications have a potential risk of losing money as these applications require hours of activity before they make any significant returns. It sometimes can even take months to recover just the initial capital investment.
Furthermore, unlike SocialFi projects, the move-to-earn applications are owned and controlled by developers or publishers who can put a cap on how much a user can earn during a certain period of time.
In addition, there are also a number of rules attached that you must understand before you can start earning. The biggest drawback of move-to-earn, however, is that it takes the fun out of physical activity. The mechanics are built around earning and not enjoyment.
Therefore, the application is merely focused on the earning part of the activity rather than making it enjoyable. Thus, it soon becomes exhausting for the user. It defeats the entire purpose of the game.
Opposed to move-to-earn, SocialFi applications help in strengthening the purpose of social networks as they provide a fair mechanism to creators to earn a rightful and profitable income. They provide a middle ground to both businesses as well as communities to work together in sync with each other and help each other to earn profits.
It offers great utility to the users and puts the power of control back into the hands of creators. Users can earn and profit directly by means of social interactions. Simple and routine actions such as liking and commenting on various social media channels can generate an income for a user without any risk of privacy breach or profits being taken away by developers.
SocialFi is, therefore, instrumental in deciding the future of social media. It makes sense to ask how blockchain will impact social networking and underlying challenges. It directly challenges the monopoly of influence as currently exercised by giant corporates such as Google, Amazon and Facebook. It brings a greater degree of freedom, thus democratizing the world of social networking.
SocialFi possesses great potential to create multiple applications aimed towards the protection of data and privacy, all centred towards the benefit of users. It allows users to earn an income be engaging in decentralized digital activities such as communication, NFT minting, gaming etc.
It is a fair way to distribute advertising revenues in an equitable manner among all stakeholders. It also presents a fast and environmentally sustainable economic opportunity by presenting a clean way to lend, borrow and trade money.
It will prove to be a revolutionary transformation towards a sustainable way of life and will play a crucial role in curbing the climate change challenge. SocialFi applications provide an intriguing opportunity to users to generate an income and under the right circumstances, can users to actually create more content.
It is an innovative and revolutionary technology for future generations. With immense potential and never-ending benefits, the only plausible conclusion here is that SocialFi is here to stay. It is here to provide us with a better way of networking which has privacy and public trust at its heart.
It might be a virtual concept but SocialFi is sure to shake the marketing and finance worlds alike.
Top 5 socialfi app
Web3.0, social, and financial are combined in SocialFi in a way that rewards and benefits users. By giving inventors ultimate economic autonomy, it aims to benefit them. It accomplishes this by putting in place user-friendly NFTs, currencies, and features. Profitable players in the Defi market are those who can position themselves to ride the wave.
1. Genopets app
The advantages of blockchain technology fuel a free-to-play NFT game called Genopets. The Genovese will be a sizable open environment where you may raise, engage in combat, craft, and travel with your Genet. The first Move-to-Earn NFT game that offers prizes for leading an active lifestyle is Genopets. The ability to make money and have fun frequently conflicts with the desire to keep busy.
Balancing self-care while working long hours at a desk is challenging. You shouldn’t have to give up health for a fortune on Genopets. We could all need a reason to go outside, be active, and have fun in the aftermath of the worldwide epidemic. There has never been a better opportunity to propose a creative strategy for re-engaging with one another and ourselves. We have the chance and the resources to rebuild stronger and lay the groundwork for a promising future.
2. RALLY app
Rebuilding the link between creators and fans is the main goal of Rally, a relatively new and well-liked private token distribution network. Creators can directly mint NFT on RALLY for trade or they can develop and issue their own unique tokens for the creator coin.
The creator coin functions as a qualification certificate that entitles the possessor to benefits like entry to the creator’s exclusive Discord community, the purchase of particular items, etc. The RALLY platform’s native governance token, RLY, may be used to buy Creator Coin and traded for any other Ethereum token. RLY went public in April, reaching its high on April 3 at $1.38. RLY is now accessible for mining liquidity through Balancer and Uniswap.
3. STEPN App
The STEPN web3 app offers a lot of GameFi features that make an effort to differentiate it from other fitness apps currently available. Via exercising outside, players may earn the game’s cash by jogging, walking, and running. These in-game currencies can be spent or exchanged for real money.
The GMT, or “Green Metaverse Token,” is the native token of the STEPN app. Only six billion tokens are currently in use. Before utilizing the STEPN app to earn GMT, users must be level 30 and have at least 3 Energy. You may trade your GST and GMT tokens for other currencies on cryptocurrency exchanges after you achieve level 30.
4. AUDIUS app
A decentralized music streaming service with social networking capabilities is called Audius. It features a partnership with TikTok that enables fans to follow artists and post links to their videos on TikTok’s Sound Kit. It has an AUDIO token and is open-sourced. By carrying out objectives like making three music uploads, encouraging at least five friends to join, and listening to one song every day, you may win free AUDIO tokens (for 7 consecutive days).
Users that possess the AUDIO token can take part in a wide range of activities, including various Cypher competitions. It allows for high-speed streaming at 320 kbps, ensuring that the sound is handled smoothly and clearly before it reaches the fans’ ears.
5. FreeCity app
Members of the social network and revenue-generating platform FreeCity can get tokens or money depending on how actively they interact with other users. The platform’s ultimate purpose is to change all social interactions from being crowd-based to being based on a web-3 token city. It effortlessly integrates blockchain technology with the social interaction ecosystem, enabling the assets and economic system of the city to be safe and decentralized.
Through chat2earn, gamers have the chance to impact their community while making money in FreeCity. You have unlimited creative freedom in FreeCity to create the structures you want. You can participate in our chat2earn mechanism in social audio rooms in this metaverse. You have greater standing in the city if you own more attribute NFTs.
As an investor in any of these apps, one must keep an eye on the founders and ensure they are creating communities that are devoted and organically motivated. When investing in these initiatives, one must use caution because they have not yet been put to the test in the field. If one enters a new field early enough, there is a lot of room for price discovery.