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It has been two decades since the inception of MySpace, the pioneering social networking platform that introduced us to features like Top 8, MySpace Tom, and profile page music. Reflecting on the evolution of social media from MySpace to Facebook, Twitter, Instagram, TikTok, and more, we are reminded of the original purpose behind this technology.
Social media has empowered content creators to achieve viral status and has granted everyday users instant access to viral content at the click of a button. However, we must consider the sustainability of these platforms in continuing to provide and facilitate access to such content. Are we witnessing the start of a prolonged conflict between content creators and advertisers, as exemplified by the Elon Musk versus Bob Iger feud? If so, social media platforms must chart a new course that caters to the needs of both creators and users seamlessly.
The emergence of SocialFi, the fusion of social media and decentralized finance, offers a promising alternative that combines accessibility, monetization, digital ownership, and scalability while ensuring the protection of influencers and creators under a more viable revenue model.
TikTok recently embraced the concept of the “third place,” a term coined by sociologist Ray Oldenburg to describe social environments distinct from home and work. With rising living costs and the impact of COVID-19, traditional third places have become financially inaccessible for many, making platforms like TikTok and Instagram the new, inclusive “third place” for the average individual.
The success stories and setbacks experienced by content creators on various social media platforms highlight the volatility and unpredictability of this industry. While platforms like Vine catapulted individuals to stardom, the demise of such platforms has left many creators without a platform. The shift towards reliance on advertisers has disrupted the original content creator model, leading to concerns over fair compensation.
Decentralized social media platforms are disrupting the traditional compensation models by integrating the benefits of web3 technology. By utilizing cryptocurrency and smart contracts, creators can now directly receive payments without intermediaries taking a cut, ensuring fair compensation and transparent revenue tracking.
SocialFi offers enhanced data analytics, transparency, and fairness in revenue distribution, addressing issues of misreported earnings on traditional platforms. By empowering creators with ownership over their financial success and providing advertisers with targeted advertising strategies, SocialFi promises a more equitable and engaging digital ecosystem for all stakeholders.
As we navigate the potential of decentralized social media, it is crucial to prioritize user experience, education, and simplicity to drive adoption and unlock the full potential of these platforms. By focusing on mainstream needs and promoting the core value of decentralization, decentralized platforms have the opportunity to revolutionize the creator economy and reshape the social media landscape.
In the midst of the upcoming crypto bull run, investors and VCs should pay closer attention to the social media sector. Companies that prioritize ease of use and communicate the benefits of decentralization effectively are poised to lead the industry. The possibilities are vast, and by embracing simplicity and addressing mainstream needs, decentralized platforms can transform the creator economy and social media landscape.
Author Bio:
Rick Porter is the co-founder, CEO, and CTO of DSCVR. With a strong technical background in AI/ML, big data, and crypto projects, Rick has led innovative ventures at Google, Boston Consulting Group Digital Ventures, NAX Group, and Accenture. He has been involved in building social products at MySpace and has held leadership roles in various startups. Rick holds a bachelor’s degree in computer science from the University of Maryland.