This article discuss about impact of blockchain technology to decentralize social media. Social media has successfully transformed communication by providing an extensive
global platform for exchanging ideas and initiating business contracts. However, with
all the good things associated with social media, there are a few limitations, too,
such as misinformation, lack of content moderation, identity fraud, digital piracy,
data breaches, and fake news. The limitations gave birth to implementing blockchain
technology in social media. Blockchains provide confidentiality, transparency,
traceability, security, and information control.
The surge in the Use of Blockchain Technology
Blockchain technology is rampantly being explored by many industries, including
social media. Most business organisations are taking the help of social media
platforms like Instagram, Twitter, Facebook, and LinkedIn for branding and
marketing. As the blockchain gains popularity and use, new platforms are creating a
secondary network similar to the existing interface of popular social media sites.
Social networking platforms like Instagram, Twitter, and Facebook have received
negative marketing due to various BOT issues. This is despite verifying online
identities. Organisations, influencers, or marketing agencies no longer want to run ad
campaigns based on false impressions. They want to ensure the campaigns reach
the right customers with verified identities through blockchain and smart contracts.
Decentralized social media are social media platforms that aren’t governed by any
central authority. They are built on decentralized technologies like blockchain that
enable them to operate in a distributed way.
Decentralized social media is more resistant to censorship than traditional
centralized social media platforms. This is due to the absence of any central
authority controlling the published content. Hence, the users have more control over
data and decide how and when to share it.
How can Blockchain Technology transform Social Media?
Global adoption of blockchain technology has been a long-awaited goal for the
industry. Slowly blockchain technology is progressing towards making a mark across
various sectors, including finance, supply chains, healthcare, etc. As per recent
research, blockchain can also bring social finance opportunities besides providing
uniform algorithms, protection against data scams, and content censorship.
Blockchain will transform how businesses perceive social media and impact their
audiences. Web 3.0 can reward content creators and ensure transparency in social
media platforms. As per industry experts, blockchain can ensure social media
protection against fake information, as it has the potential to provide control over
user-generated content. Blockchain technology can provide a decentralized
approach to data distribution and protect authenticity.
The Journey from Traditional to Blockchain-based Social Media
To make the shift from a traditional social media platform to a decentralized social
media platform, here are a few changes that will be required:
● Developing and deploying new infrastructure based on decentralised
technologies like blockchain will require significant testing and development
efforts.
● The companies will be required to change their business model due to their
inability to collect and monetise user data. Instead of selling services, they will
have to use cryptocurrencies to generate revenue.
● There will be a considerable shift in the user experience. Users will have more
control over data and can choose how it is perceived and shared.
● The company will have to follow data privacy and blockchain technology
regulations.
The shift in Business Models
Traditional social media companies will be required to change their business model
and transition to a decentralised platform. Most social media platforms generate
revenue by monetising user data by selling it to retail platforms for target
advertisements. A decentralised social media platform will give users more control
over their data, and companies will no longer be able to rely on user data for
monetary gains. A decentralize social media platform can help generate revenue in
the following ways:
Advertising
● The companies can generate revenue through advertising without
intruding on users’ privacy. They will be required to be transparent. Users
can choose which ads they want to see, or advertisers can also pay for
access to users and explicitly request them.
Service Sales
● The companies can generate revenue by selling premium features or
providing access to exclusive content.
● The companies can accept payment using cryptocurrencies, like Bitcoin
or Ethereum. This payment can be in the form of a transaction fee or
access to certain content features.
How will the user experience change?
The user experience of a decentralise social media platform may differ from that of
traditional social media platforms. An essential point of difference is that users will
have more control over their data. They can opt in or out of various types of data
collection and sharing and are given more control over their privacy settings.
The decentralized social media platforms must ensure an easy-to-use interface and
attractive features. There are different kinds of users; hence, designing an easy-to-
navigate and intuitive platform must be a part of this process.
The decentralized platforms must provide tools to create and share content, with
privacy settings and security features that do not exist on traditional platforms.
Conclusion
Platforms for decentralized social media offer a substantial paradigm change in how people interact with one another.
perceive, interact with, and exchange information through the use of the internet. Decentralized platforms are gaining popularity because they give more control than traditional, centralized platforms. This is one reason behind this trend.
and are less likely to have the data censored in any way.
It is quite likely that the proliferation of decentralized social media platforms will lead to the success of further up-and-coming platforms. The growth of decentralized social media eventually implies more user autonomy and privacy, signifying a bright new future for the generations who will follow after us.