SocialFi is short for Social Finance. In a nutshell, it is the combination of social and finance. SocialFi is made to turn the social economy to decentralization, where issuers give tokens to participants as a form of reward. The idea is to give the general public the opportunity to get more benefits through decentralized finance and tokenization of how social media operates.
The cryptocurrency industry has always aimed to leverage blockchain technology and introduce token incentives in order to establish decentralized social platforms. Blockchain developers began tokenizing social media + finance in 2017. As it became more popular, more earning opportunities are explored. As cryptocurrency users have better understanding of Web 3.0 and decentralization, people now have a clearer perspective as to where SocialFi is heading.
Web 3.0 is expected to change the game plans of the established internet giants and influence in the creation of a new freer world. As Radian Community points out, it is the start of the internet’s evolution towards the fulfillment of the varying needs and requirements of its users.
Back in the Web 2.0 era, creators are given the chance to establish reputations and businesses and pull the world closer. Users do not simply read content but also engage in different forms of interactions. Social media giant Facebook, for instance, gained so much popularity when Web 2.0 started. The social media’s massive outage that lasted for more than five hours affected millions of services and operations from across different industries. This is one of the proofs that the internet plays a huge role in the modern business world.
As Facebook declines in popularity, people’s attention shift to cryptocurrencies. This trend became even bigger during the Covid-19 pandemic when people started generating farm tokens and learned about NFTs in various platforms.
A lot of internet users are into various social networks. As DeFi (decentralized finance) directly appears on locally and internationally popular social platforms such as Facebook, Twitter, and Reddit, more users embraced DeFi and Web 3.0.
What SocialFi offers
SocialFi offers solutions to two issues. One is the domination of traditional giant social networks over content creators who only enjoy limited economic revenue. Another one is the domination of large social influencers over ordinary content creators.
SocialFi recognizes the idea that an open and transparent economic activity allows for diversity in gameplay and models. On the other hand, popular social platforms monetize their users’ contributions while users who devote so much time and effort do not gain direct incentives. SocialFi seeks to turn users into direct beneficiaries who can gain the right rewards for their time and effort.
In a greater sense, SocialFi wants to emphasize the need to recognize individual value. When users are given the chance to create individual creative content and social influence, they can benefit from the creator economy. As a result, the SocialFi’s value ecosystem grows and expands.
Currently, SocialFi remains in its early stages of development. Many users are spreading concepts and developing existing technologies based on social tokens. Some platforms are classified by SocialFi concept. Also, some project concepts tend to overlap with other concepts like GameFi and NFT.
For more information,visit: https://www.radian.community/