The meteoric rise of social media cannot be understated. Today, nearly 5 billion (4.9 billion to be exact) people worldwide use social media platforms, meaning 1 out of every 3 people are connected to a social platform. According to Demand Sage research firm, this number is projected to reach 5.85 billion in the next four years as the penetration of smartphones grows larger. Platforms such as TikTok, Instagram, Facebook, and X (formerly Twitter) boast billions of active users, showing the power social media has on the human race.
Each of these mega social platforms pays content creators for content that engages their users, a monetization project recently amplified by X’s monthly payouts. Nonetheless, a growing number of users remain disgruntled that these big social media companies host their posts but take the lion’s share of the revenue generated.
Additionally, these big data firms maintain complete ‘ownership and control’ over the users’ data – creating a privacy problem as these companies started selling customers’ data. In the earlier parts of the last decade, personal data belonging to 87 million Facebook users was collected without their consent by British consulting firm Cambridge Analytica, who then used the data predominantly for political advertising. This scandal ravaged the UK Parliament and U.S. Congress, which led to Meta agreeing to pay $725m (£600m) to settle legal action over the data breaches.
Since the scandal, social media users and developers have become more weary of big data firms, as many still believe big data firms place profits over the actual needs of users. As Ashkan Soltani, a former chief technologist for the Federal Trade Commission, explained to The Guardian in 2019:
“While it appears that Facebook is suddenly ‘woke’ to privacy issues, it’s safe to assume it’s business as usual there.”
In the search for better social media platforms, one technology is heavily signalled as the solution to the current social media age – blockchain technology. Social media platforms built on the blockchain are rapidly revolutionizing the way people share, interact, communicate, and monetize content online. This technology introduces novel features, including transparency, data ownership, non-censorship, and decentralized incentives to social media platforms – enhancing the usability of the platform and the privacy of its users.
How blockchain is revolutionizing the social media industry
With billions of people still residing on TikTok, Snapchat, Facebook, X, Instagram, and other Web 2 social media platforms, blockchain-based social platforms still have a long way to go. But with the qualities offered on these platforms, it is only a matter of time before users rush to decentralized social media platforms.
For instance, Phaver, a social media platform powered by social graph protocols Lens Protocol and CyberConnect, aims to bring this revolution to the global masses. The Twitter-like platform is built to enhance user-experience and provide a valuable, easy-to-use service – aiming to bring the next billion people to Web 3-based social platforms.
However, it is the social-finance (SocialFi) aspect that drives most people towards Web 3 based social media platforms. Phaver’s SocialFi innovations allow user profile ownership, monetization of personal data, and privacy enhancement, as no third-party can access your data without your consent. Notwithstanding, the platform includes interoperability features allowing users to move between platforms (e.g. transfer your data from Twitter to Facebook) without needing to build a new audience from scratch.
Unlike traditional big data companies, Phaver’s advertising on social media allows users to opt out of the intrusive tracking across the web (circa TikTok scandal). The platform offers users an option of a completely ad-free experience for a small fee, or a free experience with some ads. The difference with traditional social media platforms is that the ads will not be targeted as the platform does not collect any users’ data or personal information. Finally, users can also opt in the revenue sharing model, whereby if you click an ad and purchase a product, the platform rewards you with points that can be used within the Phaver ecosystem.
Another Web 3 social network is Peer Inc., which integrates blockchain into AR social media platforms. The platform introduces novel features to social media, providing an immersive experience for users via its AR-focused social platform, Peer SuperApp.
Additionally, Peer Inc. also provides a decentralized federated identity (DFI) to every social media user, allowing them to own their entire digital footprint from social and media content they’ve collected throughout their lives. Notwithstanding, users can create public utilities (access tokens) to their data so they won’t need to share their DFI with each service they sign up with, enhancing their privacy and anonymity on the internet.
Can Web 3 social platforms replace big data platforms?
The potential for Web 3 social platforms to replace Web 2 social media platforms is a topic of ongoing debate and speculation. Web 3 social media platforms offer user privacy, control over their own data and decentralized incentives alongside solutions to big data selling data to third parties. While this could be an attractive feature for individuals concerned about data privacy, the blockchain revolution in social media is still decades off the successes of traditional social platforms.
Web 2 social media platforms have a massive user base and strong network effects. Many people use these platforms daily for communication, content sharing, and social interaction. Replacing such well-established platforms with Web 3 alternatives would require significant user migration. In addition, the scalability, user experience, design, and features that Facebook, Twitter, and TikTok offer drive people to Web 2 platforms.
In conclusion, while Web 3 social platforms offer a promising vision of decentralization and user empowerment, replacing Web 2 social media platforms is a complex and challenging task. The extent to which Web 3 platforms can replace Web 2 platforms will depend on factors like user adoption, technological advancements, regulatory developments, and evolving user preferences.