New SocialFi trends in crypto world 2022

SocialFi

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SocialFi is a blockchain platform that combines social networking with finance. SocialFi may be seen of as a new “variation” of DeFi that emphasizes decentralization, openness, and user empowerment. As a result, SocialFi will be strongly associated with two other concepts: Web 3.0 and DAO.

I. General Overview

1. What is SocialFi and how does it work?

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You may see things like this to make it simpler to comprehend. The system is now being segmented by social networks (social networks) such as Facebook and Twitter, among others. The goal of it, according to Chung, is to provide a free service to users via an intermediate firm. They then collect the user’s data and profit from it, for example, by presenting endless advertisements.
With the introduction of SocialFi, traditional social networks will be upgraded to the Web 3.0 platform. Instead of concentrating power in the hands of an intermediate corporation, power will be placed in the hands of users at this time. They have the power to choose whether or not that model will survive, and they may even be able to profit from their data.

2. What is the purpose of SocialFi?

When DeFi is seen as a fad and people are still searching for the “Hidden Gems” therein, there is one project that outperforms many DeFi ventures in terms of income. Everyone may predict which project gets the first shot for development in the Game using Token x1000 Seed price (price at fundraising round). So, now that GameFi is deemed a trend, why don’t we go out and discover other wide things? It’s due of its strong relationship with DeFi and GameFi.
The Social and DeFi Relationship
At the moment, we see this link most clearly via people with a lot of clout — KOLs, Influencers, and even Super Stars in their respective fields.
Many of us will follow or enable notification mode on Elon Musk’s, SBF’s, and others’ Twitter status lines to check whether they have commented anything regarding the market, therefore judging and making the initial choice. private.
Because each of them has a large fan following on social networking sites, their every move has an influence on the market. Blockbuster transactions, such as Messi’s transfer to PSG, have lately affected the club’s representative Token, leading the price of Tokens especially for fans of this team to rise.

II. SocialFi’s Opportunities and Challenges

1. The Possibility of SocialFi

In the realm of cryptocurrency, Web 3.0 has been and continues to be a new trend. It aids in the creation of greater opportunities, which entails the development of new models. Traditional approaches will progressively be phased out as blockchain penetrates every aspect of life.

2. SocialFi’s Challenges

Despite the fact that we have the possibility to witness it, conventional social networks continue to dominate this market. Blockchain technology has the potential to help SocialFi disrupt these social networks, but it must overcome two major obstacles in order to gain traction. Specifically:
The first challenge is a monopoly of power.
SocialFi is simply a visual representation of personal worth, which is expressed in monetary terms (cryptocurrency, for example). SocialFi will expand its monopoly on content production to pre-existing participants or already powerful superstars. On the other hand, for the latter participants, or just regular people with little or no power, it might be difficult for their material to reach a large number of people. As a result, they’ll need to generate more engaging content to keep people interested. In truth, this pricing is not suitable for everyone.
Monetization Model is the second challenge.
Users of SocialFi may presently produce value in a variety of ways. Creating material and waiting for feedback from followers is typical (a form of donation). Another approach may be Write-to-Earn (which is similar to the Play-to-Earn concept), which allows authors to earn money by writing. This need sophisticated algorithmic techniques as well as user-friendly access.

3. What is included in the SocialFi ecosystem?

Currently, the majority of SocialFi initiatives are focused on releasing tokens and then making these social tokens the project’s core. In general, social tokens may be classified into three groups. Specifically:
Personal token: Assume you possess a fan base, and personal tokens will assist you in interacting with and keeping in contact with your followers. Simply simply, you’ll be able to design your own social token, which you’ll be able to sell and distribute to your followers. Personal tokens, for example, might grant your fans access to exclusive groups or unique material created by you.
Community tokens: Community tokens are tokens issued by a specific community, similar to the type above. For example, let’s say you’re a gamer who wants to join any gaming guild. Members of this guild game community will create their own tokens and distribute them to other members in order to bring the community together.
A sort of token produced by social networks is known as a social platform token. Users will most likely be able to receive tokens of this sort from models like Facebook or Twitter in the future. It may be used for security, locking, and even community governance. Audius, a decentralized music-based streaming network focusing on transactions between musicians and fans, is another example. The AUDIO token is utilized throughout the platform’s activities.

4. What is included in SocialFI’s system?

Currently, the majority of SocialFi initiatives are focused on releasing tokens and then making these social tokens the project’s core. In general, social tokens may be classified into three groups. Specifically:
Personal token: Assume you possess a fan base, and personal tokens will assist you in interacting with and keeping in contact with your followers. Simply simply, you’ll be able to design your own social token, which you’ll be able to sell and distribute to your followers. Personal tokens, for example, might grant your fans access to exclusive groups or unique material created by you.
Token of the community: Community tokens, in the above type, are tokens issued by a specific community. For example, let’s say you’re a gamer who wants to join any gaming guild. Members of this guild game community will create their own tokens and distribute them to other members in order to bring the community together.
A sort of token produced by social networks is known as a social platform token. Users will most likely be able to receive tokens of this sort from models like Facebook or Twitter in the future. It may be used for security, locking, and even community governance. Audius, a decentralized music-based streaming network focusing on transactions between musicians and fans, is another example. The AUDIO token is utilized throughout the platform’s activities.
Epilogue
Many new platforms, notably SocialFi, have emerged as a result of the development of Web 3.0 technologies. It will be a technological advance at a time when the subject of protecting people’s privacy is more important than ever. You may explore further into SocialFi as a venture capitalist.

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