The popularity of the NFT sector in the crypto market seems to have diminished, but people have no doubt that there will always be new hotspots in the crypto market. Not long ago, GameFi leveraged the meta-universe concept and the Play to Earn model to shine. Then it will come again. Which racetracks are on their turn to emerge suddenly? At present, SocialFi may have the potential to become one of the next batch of dark horses.
Social is a necessary component of the meta-universe concept and the next generation of Internet Web3.0
During the transition from Web2.0 to Web3.0, Internet users need to build some middleware to gradually migrate from simple to complex. The progress from the real world to the meta-universe cannot be achieved overnight. The realization of the meta-universe concept needs to start from the existing Internet world and use a series of Web3.0 components to deliver Internet users to the meta-universe world in batches and stages. The success of DeFi, NFTfi, and GameFi is also in line with the necessary steps to guide users into the new Internet architecture. After trying DeFi’s decentralized asset transfer, NFTfi’s digital work value discovery, GameFi’s interesting P2E, decentralized Opinion publishing and personal display have become the next step to be explored and developed Web3.0 components, and in the past development history of the Internet, we can also clearly see that social networking can almost be said to be the rigid demand of Internet users.
The Internet social system needs a major innovation
The current Internet social system has surpassed the simple concept of centralization, which can be described as oligopoly. Facebook and Twitter have always dominated overseas social markets, while Weibo and WeChat have fully occupied the domestic Internet social field. The application of mobile internet has greatly expanded the channels for information release and reception. In just a few years, Internet users have shifted from actively searching for information to passively filtering effective information from massive exposures. Attention economy is prevalent, and algorithms and push notifications will help everyone. It is locked in its own information cocoon, while social media can dig out more private information and commercial value through user preferences and habits. Big data killing and privacy violations have almost become an unwritten consensus. Even so, it is still extremely difficult to break the existing social system. Once users use social media in depth, migration and abandonment will have to pay extremely high social and economic costs. Simple improvements may not be enough to shake the social media giants to take root. A huge network of relationships over the years. The new Internet social networking products of Web3.0 may need to provide users with a comprehensive sense of use in terms of privacy, freedom, convenience, and user size, before they may bring about a real upheaval. At present, the emergence of blockchain social products that can compete with the aforementioned giants in the decentralized market seems to be far away, but users have an increasingly strong demand for breaking the inherent social model.
SocialFi’s value discovery
The open and transparent conduct of all economic activities is a prerequisite for the establishment of SocialFi, and more gameplay and modes can be derived. Take the Play-to-Earn mode in GameFi as an example. In the future, SocialFi’s economic model can be widely used similar to Post-to- Earn, Share-to-Earn, Comment-to-Earn, etc., which means that the user’s influence and activity in social networks can all be quantified by the decentralized economic system, that is, the user’s active and passive social activity The degree is linked to income, let’s call it Active-to-Earn for the time being. Traditional social platform companies convert user-contributed content into their own profits, while users who spend a lot of time and energy themselves cannot get the slightest direct reward, while SocialFi turns users into direct beneficiaries, and the energy or time spent can be obtained, etc. Value incentives.
At present concepts related to the center of social networks have creators economy, economy of the owner, a fan of the economy and so on, and since the beginning of DeFi market value of the social field has also been found that the path of innovation, such as Musker and his dog coins . SocialFi, as its name suggests, is an attempt to transform the social economy into DeFi. Issuers directly connect with participants through social tokens and benefit from it.
A value discovery path of the SocialFi platform can be realized through content distribution. Simply put, it is to reward content producers through social platform tokens. This is an innovation to the existing attention economy. Users provide attention to reward others or create wealth. , Rewards are distributed through elements such as likes, reposts, and publications.
Fan economy is another mode of SocialFi value discovery. It attempts to change the problem of low efficiency in the conversion of traditional fan economic value. The traditional fan economy is mainly based on the works and time commodities provided by authors. The power is low, and the centralized multi-layer economic structure is likely to cause cumbersome settlement, inefficient marketing, and the commercial value cannot be fully released. The decentralized SocialFi model has the characteristics of socialization and peer-to-peer model, so that personal social token issuers can get direct attention and investment.
Outlook and vision for the future of SocialFi
The successful centralized Internet social product of Web2.0 is the ultimate presentation of the platform model. The migration cost of users is mostly reflected in the internal relationship network of the platform built by it. The platform economy has a network effect, and social products with high usage rates are easily attracted to others. New users join. If the decentralized social products that emerge in the future can successfully break this rule, it will have an unprecedented impact on the entire Internet and the entire society, because it reshapes the existing communication mode of mankind. To achieve this goal, SocialFi products must do the following:
The first is a long-term stable and resilient economic system. The development and growth of social platforms often require years of user accumulation and deep cultivation of functions and content. This requires the economic model of SocialFi products to be able to cope with repeated changes in the number of users and platform content for a long time without collapse;
The second is a sound incentive mechanism and rights distribution rules. The success of social platforms lies in the number and activity of users, and the uneven benefits caused by rough distribution rules are very likely to cause a large number of users to lose and lead to product shedding. The fundamental solution to this goal is a timely response operation team and long-term Active community governance.
The third point is a good user experience. This is no different from any Internet product, but it is also the most difficult point to achieve. This is the cornerstone of today’s social media giants. However, the current decentralized underlying infrastructure has obvious limitations, which undoubtedly increases the difficulty for SocialFi products to provide high-quality user experience. When new SocialFi products appear, users may be curious, profit-seeking, and hate traditional social platforms. I am willing to try for this reason, but a poor user experience makes it difficult to retain active users, especially in the high frequency of use of social media.
Social products actually began to appear in the decentralized market very early, and teams have been constantly trying and breaking through, hoping to compete with traditional centralized social products, such as the previous Steemit, and today’s WHALE, Rally, Mask Network and so on. But until today, there is no product that can achieve a stable range of applications. I hope that in the future, SocialFi can successfully take advantage of the meta-universe and Web3.0 concepts and develop a product that can truly subvert the traditional social platform.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/will-socialfi-become-the-next-hot-spot/
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