What is SocialFi?

DeTech.World
2 min readAug 17, 2022

SocialFi is actively developing in the era of Web 3.0 and in the near future this concept will become an important part of the decentralized ecosystem of the metaverse. You will be able to earn money for publishing your content and through social interactions with it.

What is SocialFi?

A new concept has appeared in the crypto industry — SocialFi (Social Finance). It creates additional value for social networks, as it is their combination with decentralized finance (DeFi) on the blockchain.

SocialFi enables users to earn income from content creation, NFT creation, communication with other users, entertainment and games. That means that subscribers can donate platform tokens for the content they like, NFT, etc.

SocialFi Goals:

  • turn users into direct beneficiaries;
  • provide creators of social platforms with tools to monetize user contributions;
  • provide users who spend a lot of time and effort on social presence on the Internet with the opportunity to receive a fair reward in the form of tokens.

The main advantages of SocialFi projects in comparison with traditional social networks:

  • Storing all data on the blockchain, not on centralized servers;
  • Users and content creators can receive financial rewards in the form of tokens for publishing and sharing content;
  • Tokenized social influence. Users are rewarded for attracting attention, viewing and interacting with their content.

Problems that can be solved with SocialFi.

The operating principle of SocialFi is based on decentralization and collective management. This approach allows you to solve several problems of social platforms of the Web 2.0 generation at once, which are:

  • violation of privacy and security;
  • censorship and data control;
  • unfair distribution of benefits.

In the Web 3.0 scenario, the social network will belong to the community, not to a centralized institution. The management of the platform, the set of rules and the overall operation of the platform will be regulated by users, and most of the potential profits will be received by users.

In general, SocialFi has great potential and is actively developing in the era of Web 3.0. Supporters of the concept believe that SocialFi is a big step in the development of technologies, as well as a good way to ensure the personal interests of users in the virtual space. It is very likely that in the near future SocialFi will become an important part of the decentralized ecosystem of the Metaverse.

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