There are social media platforms on blockchain that offers crypto for interaction

Cover page for decentralized social media via CoinGecko

Blockchain technology has a lot more applications than just cryptocurrencies and smart contracts. One such application is a next-gen social network operating on blockchain technology, where users earn crypto through their posts, comments, and interactions. Such social media platforms are usually referred to as Web3. They are decentralized, owned by the users, and often tokenized.

Let us see below the reasons these platforms are becoming popular, along with some of the leading platforms.

What makes blockchain-based social media stand out

Minds logo via Altorise

• User Ownership and Control

In the case of traditional social media networks, data and content of the users are stored on centralized servers, which are controlled by the companies owning the networks. Decentralized social media platforms that belong to the Web3 category are not like that at all. The entire network is operating through different nodes instead of only one corporate server. As a result, users have more power concerning their data, digital identity, and online presence.

• Rewards and User Participation Incentives

One of the strongest draws is that your digital actions of posting, commenting, and curating content, among others, can fetch you tokens. The platforms often recognize and reward quality contributions with cryptocurrency, thus attaching real value to engagement instead of just “likes”.

• Open-ness, Privacy & Interoperability

As the platforms are built on blockchain technology, one can easily trace and verify all the transactions, votes, and history since they are mostly done openly and transparently. There is nothing like algorithms in the background that are controlling what you see. Proponents of many Web3 social applications also push for enhanced privacy and the hassle-free use of other decentralized services.

Noteworthy examples of blockchain-driven social networks

Audius Logo via CoinMarketCap

Let us highlight some of the most famous Web3 social networks in the market today:

• Diamond App—A social network that is based on the DeSo blockchain, and it allows users to earn by way of “creator coins.” Likes, tips, and engagements are convertible to actual crypto, giving creators a direct monetary incentive through that.

• Audius—An online music streaming service, Audius is a blockchain-based artist-fan-driven interaction platform too.

• Minds—This is an open-source platform that operates on blockchain and allows users to receive tokens for posting, helping, or curating content.

• Mastodon—This instance is not always tokenized, but still, it is very often mentioned as part of a more significant trend towards decentralized social networking. The platform empowers its users by granting them control over servers (instances), thus not relying on a central authority.

Another one that deserves attention is Steemit—the first one among blockchain-based social networks, where users are rewarded with STEEM tokens for their posts, comments, and upvotes. Steemit has initiated the "crypto-for-engagement" model that has been adopted by the new ones to come.

Tradeoffs & what to watch out for

Blockchain-based social media has its pros and cons. Here are some of the downsides:

• Quality vs. quantity risk: If not properly moderated, token incentives can lead to the creation of low-quality or spammy posts. This problem has been discussed in academic circles when talking about the platform Steemit.

• Smaller communities: Often, the number of people who use Web3 social platforms is still much smaller compared to the giants like Twitter or Instagram, which may result in less reach and possibly less engaging discussions.

• Learning curve: Managing wallets, tokens, and private keys adds complexity that might be off-putting to casual social media users.

What this means for the future of social + crypto

The emergence of blockchain-based social media is a clear sign that we are changing our perspective on content, ownership, and rewards. The following holds true for these platforms:

• Large tech companies do not own all the rights to your content anymore—it is up to you whether you want to “rent” it or not.

• Your time, effort, and creativity can be converted into money.

• Social interactions become part of a larger decentralized economy, connecting the interests of creators, curators, and audiences.

• For the crypto-savvy communities and creators who want to ignore the traditional gatekeepers, the new platforms offer an attractive vision of a more decentralized future.

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