The cryptocurrency world is rapidly evolving, with more people investing and learning to HODL coins. A new product that has emerged from the cryptocurrency ecosystem is SocialFi, also known as social finance. It is built through merging social media with decentralized finance.
Like other crypto products, SocialFi crypto uses blockchain technology. The main goal is to give social media users ownership and direct monetization over their content, which has been a challenge over the years.
How SocialFi Crypto Works
The first thing you must do is join a social media app. Some examples of these are apps like Lens Protocol and Friend.tech. Telegram can be considered as one, but it doesn't have features like on-chain social graphs, user-owned content NFTs, and creator token issuance built into its standard functionality.
Once you have your account up and running, start creating content and building a community. Follow other users, engage, like their content, share, and comment. As a creator, you can earn through followers subscribing to your content. Users can get tokens for engagement or for creating high-quality posts.
Social tokens and creator NFTs can be traded on decentralized exchanges like flpp.io or marketplaces.
What Are the Key Concepts?
If you are a social media user, you know how hard monetizing content and influence can be. Oftentimes, people steal content from other users and pass it off as theirs. Marketing companies that use influencers to promote products also don't pay that well.
Here is what SocialFi crypto entails.
- Content Ownership and Control
If a currently popular social media site were to be shut down someday, users would lose all their content. However, with SocialFi, the content is stored on decentralized networks instead of in a single database owned by a corporation.
- Direct Monetization
Content creators can get their full revenue through tokens, NFTs, subscription programs, or ad revenue shares without agencies acting as middlemen.
Other users can also earn tokens for engaging with content shared on social media. For example, you can earn free tokens for liking or sharing a post with your followers. Creators can purchase tokens and gift them to their most loyal followers.
- Social Tokens and Rewards
Imagine a world where you can turn likes and shares into valuable currency. SocialFi crypto makes this possible through the creation of social tokens. Popular creators can issue their own tokens, and HODLers can get access to exclusives.
Users can mint their photos and videos into NFTs, allowing for sole ownership and trading and making it easier to earn royalties.
Why SocialFi Crypto Is a Game Changer
Typically, only users with large followings and a community earn revenue. However, this is quite unfair, considering the users who engage with the content and view ads barely get a slice of the ad revenue.
However, SocialFi crypto aims to change this, allowing both creators and regular users to earn directly from the engagements and posts.
SocialFi crypto will also reduce the influence of governments and corporations on censorship. This will decrease the chances of user accounts being banned or content being removed without any legitimate cause.
