The existing architecture of the social media landscape is essentially extractive. The majority of big platforms sell their customers’ data to deliver them more intrusive advertisements. However, with the development of Web 3.0 and the metaverse, we all observed the tremendous expansion of DeFi and NFTs worldwide. We also saw the surge of major cryptocurrencies like Bitcoin and Ethereum, as well as a few chosen altcoins, to new highs in the cryptocurrency market. What more can we expect from DeFi in the future? SocialFi can help here. The SocialFi ecosystem and how it connects to NFTs are discussed in more detail further down the page.
What exactly is SocialFi?
SocialFi, abbr. Social finance refers to the merger of blockchain money with social networking. Users may make money by creating content, participating in DAO governance, minting NFTs, chatting with other users, viewing entertainment, and playing games on the SocialFi platform. While Web 2.0 social networks like Facebook and Twitter have made it easy for people to share their personal information, SocialFi initiatives protect the privacy and security of its users’ personal information, distribute advertising earnings fairly, and provide a more useful user experience.
Social Media Companies Embracing NFTs To Enter The SocialFi Space
More and more social media firms are increasing their research into NFT integration onto their platform as the SocialFi field gets speed. Companies that are actively integrating or investigating NFT are mentioned below.
Facebook/Meta
It’s no surprise that Facebook dominated Web 2.0 communication with its predicted 2.89 billion users by 2021. Meta, the new name for Facebook, is a step in the right direction towards the transition to Web 3.0. Creating the world’s largest social media metaverse with the help of Meta.
Though it hasn’t yet joined the NFT bandwagon, the photo-sharing platform’s chief executive officer indicated late last year that the firm is looking into making NFTs more accessible to its user base.
NFT profile photos have been added to Twitter Blue accounts as part of the company’s aim to incorporate cryptocurrencies onto its platform.
Not wanting to be left out of the SocialFi party, Reddit adopted the NFT profile photo shortly after Twitter. The social media company also wants to turn users’ Karma points into cryptocurrency tokens in the near future, in addition to launching an NFT marketplace.
YouTube
YouTube is looking at NFTs as an additional source of money for its creators as part of its efforts to grow its ecosystem. NFTs have been given to influencers on the site, and YouTube stated that video content would be monetized and sold as NFTs for the first time.
Why Are Social Media Companies Obsessed With NFTs?
There are no social media platforms where NFTs may be created, purchased, or traded. However, an NFT project’s success depends on the creator’s ability to effectively sell their work on social media platforms like Facebook and Twitter. Additionally, as social media platforms like Instagram, Twitter, and Reddit determine the future of NFTs without actively intervening, internet giants like these perceive a chance to do so.
It’s common for NFT owners to feel that advertising their purchases on social media increases their worth. In this way, social media firms that are compatible with NFTs have the opportunity to attract and keep new clients. Since Web 3.0 centers on storing user data on blockchains, the social media businesses with the biggest influence in the NFT field may also affect its development.
SocialFi NFT Social Media Trends
NFT Avatars
For a long time, social media users have utilized avatars to reflect their online personas. NFT avatars in SocialFi areas may reflect their owners’ cryptographic and metaverse identities. Several social media networks, such as Twitter Blue, allow users to authenticate and use their NFT as their profile image.
Direct purchasing and selling on social media platforms
Users of social media sites like Facebook and Twitter will soon be able to manage their finances with the help of decentralized financial applications. In other words, users would be able to do anything from transmitting money to trading tokens to taking part in crowdsales on a single social network platform.
Increasing the accessibility of NFTs to a broader audience
More open-source Web 3.0 application developers, such as the Mask Network, are building decentralized application ecosystems that already connect Web 2.0 and Web 3.0. Traditional social media platforms like Twitter and Facebook might benefit from additional Web 3.0 apps.
NFT fans and artists alike will appreciate the time and effort DApps like the Mask addon save by making it simpler to locate outstanding content providers. Content providers and NFT collectors don’t have to maintain separate accounts for social media and an NFT marketplace, allowing them to effortlessly move between platforms, search for information and shop NFTs with one account.
Is SocialFi The Next Big Thing To Hit The Tech Industry?
Many people think that SocialFi is a fantastic breakthrough in the technology business and an excellent technique to protect users’ interests in the virtual world. While still in its infancy, SocialFi has enormous potential to change the cryptocurrency, blockchain, and NFT industries and how we live our lives on a global scale. It’s very feasible that SocialFi may soon become a fundamental element of the Metaverse ecology.
Conclusion
Users and content providers may benefit from social contact and their particular interests in the virtual world by using the SocialFi ecosystem to tackle copyright issues. It’s not out of the question that SocialFi may take off soon, given its potential development in the Web 3.0 age.
