Social networking is one of the most popular and widely used activities on the internet. According to Social Media Global Market Report 2021, it is expected to grow at a compound annual growth rate of 32% from 94.83B USD in 2020 to 308.96B USD by 2025.
But the traditional social media network has a few problems—data breaches, privacy violations, and unclear policies, to name a few. The biggest reason for these problems is the centralised control over these platforms. As social media is evolving, so is the technology backing it. The blockchain technology, which once grew to fame for cryptocurrency, is now recognised as the next revolution for the web including social media networks.
Here’s how blockchain can impact the present social media network, the benefits of using blockchain technology for social media and what difference it creates.
USERS GET COMPLETE CONTROL OVER THEIR DATA
Every activity on centralised social media can be accessed by the company in control. This includes sensitive information that users have to share to use the platform. It is no secret that these data are often collected and sold by companies to third parties for advertising purposes.
Since the entire database of users is handled by a central authority, any fault in their systems can lead to massive data breaches. Blockchain, on the other hand, works on the principle of decentralisation. This can put an end to the problem of privacy violations as there is no longer any presence of a centralised company or third parties accessing user data.
This is achieved through end-to-end encryption and the use of private keys, which are needed to access the data and are available only to the user. As a result, users get full control over their data and can also earn cryptocurrency if they decide to share their data with the platforms.
VERIFIED NEWS AND RELIABLE INFORMATION
The spread of fake news and misinformation on social media platforms has become a major concern and often leads to huge chaos. This is unavoidable in centralised social media platforms as there is no source of verification other than its company and the news source is almost untraceable.
Thanks to blockchain technology, the identities of users and the content that they share on decentralised apps can be easily verified through ledger systems. All of these data are immutable in nature and completely trackable.
With this transparent nature of blockchain, verifying the source of any information becomes much easier, thus safeguarding the authenticity of any news and eliminating misleading information.
SOCIAL COMMERCE AND REWARD SYSTEMS
Every blockchain network has its own native cryptocurrency, which makes it easier to carry out transactions and reward the users and creators using the platform. Further, many apps allow users to earn cryptocurrency in exchange for the data they share with the platform.
This is a great opportunity for users using such platforms and can boost the earnings of creators in the upcoming years as decentralised social media platforms get adopted by the mass.
SELF-GOVERNANCE AND ENHANCED SECURITY
Social media networks built on blockchain technology allow users to access and modify their algorithms and functionalities. These allow them to source specific information and reach their target audience without the need for third parties.
Elimination of third parties also ensures that user data remains secured. The data gets stored in a distributed network of servers and can only be accessed by the owner through strong authentication procedures.
BOOST CROWDFUNDING OPPORTUNITIES
Crowdfunding has grown to be a popular and convenient way to raise funding for startups. But there are certain limitations while conducting platform-depended crowdfunding, which includes platform or ad-related fees and vague company policies.
Blockchain technology boosts crowdfunding through decentralisation as startups no longer have to depend on any specific platform. The presence of cryptocurrency on these networks also makes it easier for users to complete payments with the companies raising funds. The entire process is convenient and being trackable makes it transparent on both ends.