Web3 Social Media: Ice or Fire | 🔥 |
How is Web3 redefining social media for the next generation of users?
GM. 🫶
This is Web3 Espresso ☕—the Web3 Newsletter for creators, marketers, and coffee drinkers looking to understand how Web3 technology is changing the world we live in.
GM’ 😎,
It’s been a while but we’re back, coffee in hand. Grab your Web3 Espresso ☕ and let’s take a look at the relationship between Web3 and social media.
First, let me take you to Wednesday, February 4, 2004.
Why this date?
This was the day that the internet would fundamentally change and transition from Web 1.0 to Web 2.0.
Why?
It was the day Facebook was launched. Few understood at the time the impact Facebook would have on our world and the next three generations of internet users. Today, Meta has more than 3 billion users, which is twice the population of the world’s most populated country (India).
Most of us have used social networks and recognise what social media has enabled us to do and the people we have been able to reach. But there have been complaints as well, including the lack of user control and data privacy.
This week, I wanted to introduce you to a key aspect of the internet of the future—Web3 and social media, and how some players are looking to reshape the way social networking is done online.
Read on.
What’s in store today:
🥡 The Weekly Roundup 5 in 5
| 🔥 | Web3 and social media: Ice or Fire?
The problem with traditional social media
Web3 solutions to social media challenges
Challenges of Web 3 powered social media
The Future of Social Media with Web3
Let’s go! 🥤
🥡 5 in 5 …
The Five Stories You Need to Know This Week
The role of Bitcoin in a Web3 world 👉 see it here
Why tokenization is the core building block of Web3 👉 hear it here
How Blockchain is reshaping the fans to artist relationship 👉 read it here
Innovation in Web3 Marketing tracking and analytics 👉 read it here
Re-thinking environmental projects with Carbon NFT Licenses 👉 read it here
| 🔥 | Web3 and Social Media: Ice or Fire?
Social media has profoundly transformed how we communicate, share information, and even perceive the world around us. It started as a way to connect with friends and family but quickly evolved into a global platform that influences politics, business, culture, and every facet of society. Today, social media platforms like Facebook, Instagram, Twitter, and TikTok boast billions of users worldwide, facilitating real-time communication and content sharing across borders.
Growth and impact of social media on our society:
Connectivity: Social media has made it easier than ever to stay connected with others, regardless of geographical distances.
Information Sharing: It has become a primary source of news and information, though not without issues related to misinformation.
Business and Marketing: Companies leverage social media for marketing, customer service, and sales, making it an essential tool for business growth.
Cultural Influence: These platforms play a pivotal role in shaping cultural trends, public opinion, and even political movements.
Web3 builders are currently looking to change how social media operates. Have you heard of blockchain-powered social networks or of the idea of decentralised content creation and the shift from centralised to user-centric models?
Let’s take a closer look.
“Web3 represents a paradigm shift, moving beyond centralised structures to decentralised, user-centric networks. It heralds a new era of ownership and control.”
The problem with traditional Social Media
The use of social media platforms has quickly become one of the most popular aspects of the internet. Every single day, hundreds of millions of people all over the world navigate to and use social networking websites like Meta and TikTok. It is not unusual to see people spend more time on social media than they do actually interacting with people in the real world. This trend is expected to continue as the virtual world continues to become more pervasive.
The really interesting nature of social media is that all the content created on social media platforms is user-generated and done so for free. The more people publish, the more users consume social media content. It’s a never-ending loop.
Privacy and ownership
While social media offers tremendous benefits, such as being able to keep in contact with friends around the world easily and freely and for businesses to advertise their products and services, it is certainly not immune from criticism, especially regarding privacy and ownership.
User privacy stands out as the biggest concern. Meta has repeatedly faced criticism for its inadequate privacy safeguards. It is important to keep in mind that even with privacy settings turned on, anyone with access to the internet could see the content you post on social media.
Have you ever tried to erase all your messages, chats, or timeline posts? This is no easy task. Do you know what happens to your account when you die? Again, this is not something we ask ourselves when we create social media accounts.
Most people understand that the content they produce and post on social media does not belong to them yet the constant collection and exploitation of user data without transparent consent continues to fuel concerns and erode trust.
Sorry, your account has been blocked
You may have seen a business or influencer appeal to their community for help because their account has been blocked or banned without any reason. Social networks are 100% centralised models, which means that power is concentrated among a few entities. Of all the platforms, X is a great example of the difficult balance between free speech and censorship. Centralised control can result in arbitrary decision-making and content manipulation.
Limitations of Current Social Media:
Privacy Concerns: Users often trade their personal information for free access to these platforms, leading to privacy breaches and unauthorised data usage.
Centralisation: Major platforms control vast amounts of data, giving them significant power over what content is seen and shared.
Monetisation Issues: Content creators frequently get a small share of the revenue their content generates, with the majority going to the platforms.
Misinformation and Censorship: The spread of fake news and the opaque nature of content moderation have raised concerns about misinformation and censorship.
How are Web3 startups recognising these challenges and using Web3 technologies to create a better alignment between users, privacy, and ownership?
Web3 solutions to Social Media challenges
Unlike Web2, Web3 envisions a user-centric, transparent, and secure online experience for social media. Web3's decentralised nature has the potential to redefine how we connect, share, and engage online, disrupting the traditional dynamics of social platforms.
Users create, govern, and manage Web3 social media platforms for their own benefit, and they are able to monetise their content without the help of a middleman. Web3 promises users unprecedented control over their data and interactions. From redefining digital identities to enabling transparent value exchanges, it holds the potential to empower individuals in ways previously unimaginable.
Blockchain-powered social networks
Blockchain-based social networks are at the forefront of Web3's impact on social media. These platforms are changing the way we share, interact and communicate with people online. These systems offer improved transparency, data ownership and decentralised incentives to nudge users into action. Web3 also introduces new approaches to content creation and distribution, removing intermediaries and enabling creators to interact directly with their audience. Decentralised platforms promise fairer compensation models and greater creative freedom.
Decentralisation: Unlike traditional social media, Web3 platforms operate on decentralised networks, reducing the control of a single entity over the platform. This approach can enhance user privacy and data security by giving users ownership and control over their personal data.
Tokenisation and Monetisation: Web3 introduces new ways for content creators to monetise their work through cryptocurrencies and non-fungible tokens (NFTs). Creators can earn a more significant share of revenue directly from their audience, bypassing traditional advertising models and platform fees.
Improved Privacy and Security: Blockchain technology offers improved security features, making user data more resistant to hacks and unauthorised access. Privacy is enhanced by allowing users to control their data and choose what to share.
Censorship Resistance: Decentralised networks make it harder for any single authority to censor content, promoting freedom of expression. However, this also raises challenges in moderating harmful content.
Interoperability: Web3 aims for a more interconnected and interoperable internet, where users can seamlessly move their digital identities and assets across different platforms and applications.
Web3 seeks to create a more open, transparent, and user-centric version of the internet, including social media. It's worth noting that Web3 is still in its early stages, and there are numerous technical, regulatory, and adoption challenges to overcome before its full potential can be realised.
10 examples of blockchain-based social media platforms:
Mastodon is a decentralised, open-source social networking platform that aims to provide a user-friendly and ad-free alternative to mainstream social media platforms.
Steemit is a blogging social network where users are paid for curating and creating content. They earn Steem (STEEM) tokens based on how much they participate.
Minds is a decentralised, open-source social media platform that focuses on user privacy, free expression, and rewarding content creators.
Verasity is a video-based social network with ad blocking and ad fraud prevention and an ecosystem for video sharing, viewing and earning rewards.
Audius is a decentralised music-sharing and streaming platform seeking to transform the music business by allowing artists to engage with fans directly and get immediate feedback on their work.
Sapien is a blockchain-based social news network that emphasises user privacy, high-quality content and data ownership. It allows users to produce, distribute and engage in discourse about a range of topics while still preserving control over their data.
Dtube is a decentralised video sharing platform closely aligned with YouTube's functionality but built on blockchain technology for enhanced privacy, security, and freedom of speech.
Peepeth is a blockchain-based social network similar to X where users can post short messages, called "peeps," but with a significant twist: once posted, peeps are immutable and are preserved forever on the blockchain, making censorship nearly impossible.
Twetch is a pay-to-earn Web3 social network that combines social media and cryptocurrency economics. Users have the potential to earn BSV from their posts when other users interact with them, thereby incentivizing quality content creation and curation.
Taskon is a decentralised social media platform that allows users to connect with each other and collaborate on tasks. It promotes connecting with people who share your interests to learn new skills, build your network and get things done.
Challenges of Web3 powered social media
Potential hurdles in the adoption of Web3 in Social Media
The transition from traditional to Web3 social media platforms won’t be easy. First, user adoption is a significant hurdle. The world’s familiarity with existing platforms makes it difficult for decentralised alternatives to gain traction. Meta has invested hundreds of millions of dollars in user acquisition over the past 20 years. This will be difficult to overtake. Additionally, technical complexity and the learning curve associated with understanding and using cryptocurrencies, wallets, and decentralised applications (dApps) will deter non-technical users. Interoperability between different blockchains and platforms is another concern, as it can limit the seamless experience users expect from social media. Lastly, scalability issues, including transaction speeds and costs on blockchain networks, will need to be addressed to support the vast amount of data generated by social media usage.
Balancing decentralisation with user experience
Achieving the right balance between decentralisation and a seamless user experience is critical for the success of Web3 social media platforms. Decentralisation offers benefits like increased privacy and control over content. However, it can complicate the user experience due to the absence of centralised services that streamline processes such as content discovery, moderation, and user support. Designing user-friendly interfaces that hide the underlying complexity of blockchain technology while maintaining its advantages will be a key component of success. Also, thought needs to be put into developing efficient content moderation strategies in a decentralised environment, which poses challenges as it requires a balance between censorship resistance and protecting users from harmful content.
Regulatory considerations and evolving standards
Regulatory frameworks around digital assets, data protection, and decentralised technologies are still in their infancy and vary significantly by jurisdiction. This uncertainty poses challenges for Web3 social media platforms, as they must navigate a complex and evolving regulatory landscape. Compliance with data protection regulations such as the GDPR in Europe, while ensuring user data privacy and ownership, is a particular concern. Additionally, the decentralised nature of these platforms raises questions about liability and accountability for content, complicating efforts to combat misinformation and illegal activities. Establishing clear standards and working with regulators to develop appropriate frameworks is crucial for the long-term viability of Web3 social media.
The Future of Social Media with Web3
Predictions for the evolution of Web3 and Social Media
The integration of Web3 technologies is set to redefine social media, emphasising user sovereignty, data privacy, and economic participation. Predictions for the future include the widespread adoption of decentralised identity systems, enabling users to control their digital footprints across platforms. Content monetization will likely see a shift towards direct compensation models, with creators receiving fair compensation through cryptocurrencies and NFTs. We can also imagine the use of AI and machine learning in curating personalised content feeds while respecting privacy becoming more prevalent. Additionally, augmented reality (AR) and virtual reality (VR) technologies could merge with Web3 to create immersive social experiences in the metaverse.
Potential impact on mainstream social platforms
Mainstream social media platforms may undergo significant changes to adapt to the Web3 landscape. They might integrate blockchain technologies to offer decentralised features, such as secure data storage or token-based economies, while maintaining their user base. There could be a push towards more transparent algorithms and user-controlled data, influenced by the principles of Web3. However, these platforms will also face challenges in balancing their centralised control with the decentralised expectations of Web3 enthusiasts.
Conclusion
Web3 opens the door to unprecedented innovation and user empowerment in social media. New models for community governance, where users have a say in platform decisions through token-based voting systems, could emerge. There's also potential for creating more equitable and inclusive digital economies, where users benefit directly from their contributions to the platform. Furthermore, Web3 could enable the creation of niche social platforms catering to specific interests and communities, fostering diversity and allowing for more targeted and meaningful interactions. The convergence of Web3 with emerging technologies promises a social media landscape that is more interactive, immersive, and user-centric than ever before.
Let’s see what the future holds.
That’s all for this week… 🫶
Please note that I do not recommend or endorse the companies and organisations mentioned in this newsletter. This content is purely informative and not a recommendation. Always be mindful of where you connect your wallet. Always do your own research. 💛