How Web3 Made Social Media Companies Rethink Their Strategies?

Do you know that consumers spend an average of 2.5 hours on social media daily? Yes, over the past decade, the rise of social media has had a great impact on the way we communicate and interact online.?

In 2015, only 2.07 billion people were using social media. But today, the number has more than doubled, and close to 5 billion consumers are online.?

Through this massive growth, social media companies have generated immense revenue and value. On the sideline, influencers also found a substantial way to generate rewards.?

But in the end, the only person left with zero benefits and no penny from this is the consumers. Besides, the Cambridge Analytica scandal has put a spotlight on how centralized social media platforms handle user data.?

As a result, web3 social networking platforms are making their debut, allowing users to take charge of their data and earn from the time spent on social media. Decentralized social media has always been a concept in people’s minds who wanted to break the chains of centralization. And it took the right shape with the help of web3.?

Web3 social networks solve centralization, censorship, and data handling issues that have become an inseparable part of web2 social media. Consumers also acknowledge it as the best place for free speech.?

Although the unprecedented growth of traditional social media platforms like Facebook and Twitter are cherished widely, they are put under status to rethink their approach. And it is no joke that the existing social media companies have to redevise their strategies to stay relevant to the market.?

From Web2 Social Media to Web3 Social Networks?

While social media and social networking are often used in the same way, they are different at their core. Social networking is the concept of connecting with people through online sites, creating an interactive environment for personal or organizational communication.?

Social media is the tool used for social networking. The most familiar web2 social media are Facebook, Instagram, Discord, LinkedIn, Twitter, Whatsapp, and Telegram.?

Currently, we are moving towards web3 media where consumers get to enjoy greater control over their data and content. They also provide other exclusive features like smart contracts and blockchain-powered protocols, enabling users to create unique experiences.?

What is Web3 Social Networking and How is it Different??

Web3 social networks are interactive platforms, based on blockchain technology. The decentralized nature of these platforms allows users to enjoy complete autonomy and create and share content that could monetize them.?

In a web3 social platform, users can control their data as they do not rely on big tech companies. This releases users from tech monopolies and allows them to decide whether they would like to monetize their data or not.?

These social networks are built to create communities for different industries and sectors. The biggest advantage is that people can freely discuss ideas, interact, learn, and even manage business.?

Like many cryptocurrencies and NFTs, web3 social media platforms make the best of distributed ledger technology. Since they are run by numerous independent servers, it removes control from any individual or organization.?

Benefits of Web3 Social Networks

Web3 social media can completely remove the current social networking issues and establish a decentralized ecosystem. Going beyond leveraging an independent network, it has other advantages as follows.

Eliminates Third-party Data Sharing: Social media platforms like Facebook demands consumer data when people join the platform. However, it shares the data and information with third party advertisers to gain a hefty profit.

Web3 platforms will end the concept of using users as a product. By replacing the centralized features with decentralized nodes, web3 social networks promote safety and privacy.?

More Control Over Content: Traditional social media platforms track down users to the extent that they collect their likes, comments, friends list and even messages at times. This information is then added to the social graph to create a personalized user experience. The overall motive of this is to avoid retention and make people stick to the platform.?

Although these advantages give you entertaining social media time, it is crucial to address the privacy it takes away from you. With web3, you own your content and social graph and only you can grant access to anyone you wish.?

Crypto Payment Systems: Although traditional social media platforms are incorporating simple crypto payments, they are often proving how centralized the functionalities are. For example, Apple has recently rejected the latest version of non-custodial lightning-enabled Bitcoin wallets.?

However, web3 social networks give complete leniency over blockchain-based in-app payment methods. Using these tokens, users have a great say in the platform’s governance. They can even be a part of the decision-making process by voting using governance tokens.?

Complete Control Over Content and Monetization: Social media platforms like Facebook and Instagram lets people profit from the content they create. However, it is necessary to remember that you're not the only authority on the content.?

But in a decentralized space, users hold complete ownership of their content and monetization. You can mint your created content as NFTs and sell or rent it for real money. Users also get instant payments through smart contracts.?

Yet-to-be-Addressed Concerns of Web3 Social Network Issues

Since web3 social networks have their own unique token or crypto, there is a backdrop in standardization. This can be a disadvantage to people since they have to own and use different cryptocurrencies.?

To address these concerns, developers and industry leaders should work together and establish a common protocol to generalize the tokens. This will make the user experience seamless with fewer deviations.?

Where is the Future of Social Media Headed?

The introduction of web3 has put web2 social media platforms under pressure to reconsider their policies on data privacy and ownership. Just like how Meta, Twitter, YouTube, etc have emerged as the winners of the web2 revolution, soon we could expect web3 companies to outperform the traditional platforms.?

Although web2 platforms are reconsidering their strategies to provide more control over data and content ownership, it is less likely that it will work out in the way they want. These companies have been enjoying power for a long time.

Now it is time to cherish the decentralized concept and let the web3 social networking wave take over us.