{"id":5012,"date":"2023-12-29T07:00:00","date_gmt":"2023-12-29T05:00:00","guid":{"rendered":"https:\/\/kriptomat.cash\/decentralized-social-networks\/"},"modified":"2025-12-18T15:23:11","modified_gmt":"2025-12-18T13:23:11","slug":"decentralized-social-networks","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/decentralized-social-networks\/","title":{"rendered":"Decentralized social networks"},"content":{"rendered":"\t\t
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What is SocialFI (decentralized social networks)? <\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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SocialFi combines social networks and decentralized finance (DeFi). These decentralized social networks offer a Web3 (decentralized) approach to creating, managing and owning social network content. At the center of SocialFi are content creators, people who want better control over their data, freedom of speech and the possibility of monetizing their work and engagement on social networks, all in a decentralized way, without any intermediaries as is usual in the Web2 world. Monetization is usually done in cryptocurrencies, while identity management and digital ownership is done using NFTs<\/a> . The platforms themselves are structured as Decentralized Autonomous Organizations (DAOs) which are better suited to prevent centralized censorship decisions. As blockchain technology has been on the rise for the past few years, the SocialFi infrastructure was just another logical step forward that will improve the experience of users and content creators themselves.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Problems of Web2 social networks<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In today’s digital age, Web2 social networks dominate our online interactions, but not without significant problems. First, the vast amount of data and engagement generated by users on these platforms is largely used by a few centralized entities. These giants monetize our attention and interactions, often without transparency or fair distribution of value among users. Second, centralized decision-making leads to arbitrary and sometimes controversial bans on content, which can stifle free speech and creativity. Although the intentions are often well-intentioned, aimed at protecting users from harmful posts, such an approach may be at odds with the decentralized spirit of Web3<\/a> , which advocates transparency and collective governance. Finally, the lack of digital ownership mechanisms on Web2 platforms creates challenges for digital creators, making them vulnerable to digital piracy and loss of control over their own work. These problems highlight the need for a new model of social networks that will respect the rights and contributions of each individual, and Web3, i.e. decentralized social networks, claim to have solved this very problem.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Monetization <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In the world of decentralized social networks, monetization becomes a key component that allows creators to directly profit from their work. By using social tokens, SocialFi applications introduce a new layer of economics where each user can manage their own digital property and economy. These tokens allow creators to set up their own economic models, such as subscriptions for premium content or direct communication with followers who own a certain number of tokens. A significant innovation is that content engagement, such as liking or sharing, now has a price, which reduces spam and encourages authentic interaction. In addition, the economic models being tested in the SocialFi space are focused on monetizing engagement, allowing creators and influencers to capitalize on their work. For example, influencers can set thresholds for engagement, where only those with a higher number of social tokens can get in touch or even have their messages featured. This model not only encourages the creation of value for all participants, but also supports the creation of sustainable and fair digital economies.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Censorship and freedom of speech <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In the context of decentralized social networks, the issue of censorship and freedom of speech becomes increasingly complex. Web2 platforms often struggle to find a balance between preventing centralized censorship and limiting the spread of harmful content. Decentralized SocialFi platforms offer an alternative approach, relying on decentralization. All publicly available posts are recorded on the blockchain<\/a> , allowing users to quickly tag posts by topic and words used. This method empowers individual users to choose which tags to block and which to encounter. This model not only promotes freedom of speech, but also encourages users to take responsibility for the content they engage with, offering a new perspective on content in the digital age.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Digital ownership and identity<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The rise of NFTs as proof-of-image (PFP) has revolutionized the concept of digital identity, creating an $18 billion market where users’ identities merge with their digital avatars. These PFP NFTs not only serve as social media profile pictures, but also provide exclusive access to certain communities within the SocialFi ecosystem. The communities that form around these NFTs offer thought leadership, experiences and events, further enhancing the value and significance of owning an NFT. Furthermore, SocialFi platforms allow creators to distribute their works through NFTs, sharing sales revenue with their social token holders. This not only encourages followers to promote the creator’s work, but also for the creator to create new content himself.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Infrastructure and scaling <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The challenge facing decentralized social networks is processing and managing the vast amounts of user-generated data. For example, Facebook generates 4 petabytes of data per day, with millions of comments, statuses and likes posted every minute. Blockchain technology, which is the basis for SocialFi applications, must be able to handle such a volume of data. DeSo, a blockchain<\/a> developed specifically for SocialFi, claims to be able to scale better than existing chains thanks to custom solutions for SocialFi use cases. Techniques such as indexing, block size management, warp synchronization, and sharding are key to addressing scalability issues. Warp synchronization enables faster transaction confirmations without the need for all nodes to validate the entire transaction history, while sharding enables parallel processing, increasing throughput by several orders of magnitude. Using these techniques, DeSo plans to scale the platform to one billion users, indicating the potential of blockchain to support the future of SocialFi and decentralized social networks.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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A sustainable economic model <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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One of the biggest challenges facing DeFi and its derivative business models is creating economic models that are resilient to stressful situations and extraordinary scenarios. Whether it is GameFi or SocialFi, many platforms promise extremely high incentives and earnings for their participants. However, these incentives have so far mostly been short-term growth gimmicks. All of the aspects of SocialFi’s incentives that we’ve discussed are still in the experimentation phase. Before becoming widely accepted, these models must undergo stress testing through various market cycles and unexpected events such as crises. For example, by investing in the social token of an influential individual so that you can engage with their posts, you expose yourself to the risk of that individual posting something harmful. One such announcement can quickly lead to the devaluation of the social token and cause a chain reaction of losses for system participants. Therefore, it is crucial to develop sustainable economic models that can withstand such challenges and ensure long-term stability and growth.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Source: cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What's next? <\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Despite challenges related to infrastructure and economic models, SocialFi platforms show great potential. The world is rapidly moving towards creator economy models, and SocialFi represents a significant step in that direction. The social networks of the future that will apply the principles of DeFi can only be considered robust after surviving several economic downturns and remaining viable through them. We hope you enjoyed reading today’s blog, and that you learned something new. If you have any questions, feel free to contact us on our social networks ( Twitter<\/a> , Instagram<\/a> ).<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

What is SocialFI (decentralized social networks)? SocialFi combines social networks and decentralized finance (DeFi). These decentralized social networks offer a Web3 (decentralized) approach to creating, managing and owning social network content. At the center of SocialFi are content creators, people who want better control over their data, freedom of speech and the possibility of monetizing […]<\/p>\n","protected":false},"author":3,"featured_media":5014,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[36,30],"tags":[],"class_list":["post-5012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opcenito","category-zelim-znati-vise"],"acf":[],"yoast_head":"\nDecentralized social networks - Kriptomat<\/title>\n<meta name=\"description\" content=\"What are all the advantages of decentralized social networks, why are they better than traditional ones, and how will they improve the user experience.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kriptomat.hr\/en\/decentralized-social-networks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Decentralized social networks - 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