NFT is revolutionizing the world thanks to its advanced technology, and many fields have been undergoing rapid changes. As a decentralized and user-controlled open ecosystem, SocialFi protects the privacy and safety of users and the ownership of users’ assets.
As social projects gain more attention, social media giants like Meta, Twitter, and Reddit expand space exploration by integrating NFT into their platforms.
In this article, you will learn what SocialFi is and why major social networking platforms are adopting SocialFi by joining the NFT world.
DeFi, NFT, and crypto have been trending on social media since 2020. But what do you get when you merge social, DeFi, and NFT? A robust ecosystem called SocialFi. Join Omatech Web3
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As is known, the current model of the social networking landscape is inherently exploitative. Most powerful platforms collect user data and sell that data to cater to the growing advertising costs. However, with the rise of Web 3.0 and the Metaverse, we have seen the explosive growth of DeFi and NFT making headlines worldwide. We’ve also seen established and successful cryptocurrencies like Bitcoin and Ethereum, with a select few altcoins even hitting new record highs. So, what does the future of DeFi hold? This is where SocialFi comes in. Read on to learn more about SocialFi, why the social media giants are interested in this ecosystem, and how this relates to NFT.
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I. What is SocialFi?
SocialFi, which stands for social finance, refers to the combination of social networking and blockchain finance. The SocialFi space allows users to earn income from content creation, take part in DAO governance and NFT mining, communicate with other users, entertain, and play games. Unlike the Web 2.0 social networks we are used to, SocialFi projects have a higher level of privacy and security for users’ data, distribute advertising revenue equitably and bring a more valuable user experience.
Social media companies enter the SocialFi space using NFT
As SocialFi gains momentum, more and more social media giants are expanding their exploration of integrating NFT into their platforms. Below, we have listed companies actively integrating or exploring the NFT space.
With an estimated user base of more than 2.89 billion by 2021, it’s no surprise that Facebook dominates communication in Web 2.0. Facebook, now renamed Meta, is progressing towards its gradual transition to Web 3.0. Meta is aiming to build the world’s largest social network metaverse.
While the photo-sharing platform has yet to join NFT, the company’s CEO late last year revealed they were exploring the NFT space to make NFT more accessible to their user base.
With plans to integrate crypto into the platform, Twitter has rolled out a new feature that allows Twitter Blue account users to show off their NFTs as profile pictures.
Not missing the opportunity to appear in the SocialFi space, Reddit followed shortly after Twitter in including NFT in the profile picture. Besides its plans to create an NFT marketplace soon, the social media giant also plans to convert people’s Karma (Karma) points into cryptocurrency tokens.
To expand its ecosystem, YouTube has considered NFTs as another revenue source for its content creators. When it started, YouTube distributed personalized NFTs to influencers on the platform and announced that creators could monetize their created videos and then sell them as NFTs.
Why are social media giants so devoted to NFT?
NFTs are not created or sold on any current social media platforms. However, the success of an NFT project depends on how well the content creators promote their products on social media. And as passive social media platforms shape the future of NFT, tech corporations like Instagram, Twitter, and Reddit see this as an opportunity to enter the space directly.
Most NFT holders believe that displaying their NFT purchases on social networks will increase the value of their assets. They offer NFT-driven new customer acquisition and outreach opportunities for crypto-aligned social media companies. Additionally, the most influential social media companies in the NFT space could influence the development of Web 3.0, as this iteration of the web revolves around the concept of storing user data on blockchains.
II. SocialFi NFT trends on social networks
1. NFT avatar image
Profile pictures have long been used in social networking to represent online users’ identities. In the SocialFi space, an NFT profile picture can depict an owner’s identity in both the crypto world and the future Metaverse. For example, Twitter Blue allows users to verify and use NFT as their profile picture, and many other social networking platforms are doing the same.
2. Buy and sell directly on social networking platforms
Decentralized finance applications are slowly being introduced into platforms like Facebook and Twitter to give users the next generation of personal finance experience. Users can make payments, trade tokens, participate in public offerings, and more on one social networking platform.
3. NFT is easier to access
Many founders of open-source applications in Web 3.0, such as the Mask Network, are creating decentralized application ecosystems that bridge the gap between existing Web 2.0 and Web 3.0. They hope to bring more Web 3.0 applications to traditional social networking platforms like Twitter and Facebook.
Besides further diversifying NFT-related content options by making it easier for people to discover talented content creators, DApps like the Mask extension can save money. for NFT creators and NFT enthusiasts, a lot of lengthy steps. Example: Instead of needing two different accounts, one for the social platform and the other for the NFT marketplace, content creators and NFT collectors can seamlessly transition between platforms, browse information and shop NFT with just one account.
III.SocialFi becoming a trend or not?
Looking at SocialFi’s current growth trajectory, many consider it a huge step forward in the technology industry and a great way to secure users’ personal interests in cyberspace. While still in its infancy, SocialFi could significantly impact the crypto, blockchain, and NFT space and how we engage with social media worldwide. SocialFi can become an integral part of the Metaverse ecosystem soon.
The SocialFi ecosystem can solve copyright issues, allow content creators and users to monetize their social interactions, and protect their interests in cyberspace. Also, with the impressive growth in the Web 3.0 era, it’s no surprise that SocialFi will take off soon.