What exactly is SocialFi? Is this a new Cryptocurrency trend?
SocialFi: A Quick Overview
What is SocialFi and how does it work?
SocialFi is a blockchain platform that combines social networking with finance. SocialFi may be seen as a new “variation” of DeFi that emphasises decentralisation, openness, and user empowerment. However, two other ideas, Web 3.0 and DAO, will be strongly tied to SocialFi.
You may see things like this to make it simpler to comprehend. This market is now dominated by social media platforms such as Facebook and Twitter. What they all have in common is that they all provide a free service to users through a middleman. They then gather the user’s data and profit from it, for example, by delivering 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 determine whether or not that model will survive, and they may even be able to monetize their data.
What is the issue that SocialFi solves in this case?
Returning to the Facebook or Twitter examples above, the user’s data has now been centralised and placed in the hands of a third-party middleman. And this is one of the first major issues that SocialFi must address. It also has to do with spreading rewards to consumers as well as ensuring security and privacy. In particular, as follows:
Data Decentralisation: Traditional social media networks capture and keep as much user data as possible. To utilise any platform, you must first disclose your personal information and then track your behaviour while using it. As previously stated, this may be used to deliver advertising or to use data for a specific purpose. SocialFi has to make the collecting of user data more transparent and non-spoofable in order to replace these existing approaches. And blockchain technology can assist in resolving this issue.
Benefit Distribution: Social media networks generate money by selling advertisements based on their user traffic. Traffic and user interaction boost these platforms. In exchange, customers only gain access to the platform’s advantages. More models for people to directly monetize their social media impact should be developed by SocialFi. Those models, of course, must be linked to the blockchain industry.
Privacy and security: In a standard social network, every account registration demands the user’s information, such as their cell phone number, email address, and so on. This information is saved in a file. These platform’s server systems are centralised. Of course, because it is centralised, it is always vulnerable to assault. SocialFi must assist in securing the privacy and security of user’s information by utilising blockchain technology. It implies that everyone will have access to the information, but none of us will know exactly what that information is.
SocialFi’s Opportunities and Challenges
SocialFi’s Opportunity
In the realm of cryptocurrency, Web 3.0 has been and continues to be a new trend. It contributes to the creation of more opportunities, which means new business models. Blockchain is progressively permeating every aspect of society, and old approaches will be phased out.
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:
1. Influence monopoly
SocialFi is simply a visual representation of personal worth, and this worth is expressed in cash (Cryptocurrency). 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.
2. Model of Monetization
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 (Similar to the Play-to-Earn concept), which allows authors to earn money by writing. This needs sophisticated algorithmic techniques as well as user-friendly access.
What does the SocialFi ecosystem include?
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:
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, 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 token: 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. To bring this community game guild together, participants will create their own tokens and distribute them to other members.
Social platform token: A type 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.
In addition, Starverse is also a SocialFi game that has issued two tokens: Startverse Coin (SVC) and Startverse Token (SVE). The variety and uniqueness of this game is waiting to be discovered by you.
Startverse SocialFi
Startverse is a Metaverse game, SocialFi game for everyone, who wants to build their own startups. Here you can be a boss, a famous artist, a handsome pizza delivery guy, you can even be the owner of a casino or build a guild specialising in land contractors and do whatever you want with your empire!
To succeed in-game, you must succeed in both of your career and relationships. Players must fulfil their needs to balance between sleeping, eating, working, gyming just like real human beings. They will also need to find a job or build their own company to make money. The real goal of the game is to help your character achieve success with his dream career.
The latest Virtual Reality technology is implemented into Startverse to bring an unique 3D experience in the virtual world. Our game will support running on:
● Mobile: Android, IOS.
● WebGL and PC.
GAME GENRE: Simulation, Management, VR.
AGE: 9+
Hope this article has provided you with useful information. If you have any questions or would like to discuss this post with Startverse, please leave a comment below!
