With the emergence and development of Web3.0, a new social application SocialFi appears. SocialFi is changing the social network, which is the integration of DeFi, NFT technology and social network, allowing creators to completely control their own content and property without being controlled by intermediaries. So, what exactly is SocialFi? Why do we need SocialFi? Next, let's have a look.

What is SocialFi?

SocialFi is the distribution concept of reward sociality. Simply put, SocialFi allows customers to monetize and receive rewards for leisure activities. Decentralized factors minimize the regulatory role of the platform, and likes, shares and comments become real digital currencies for users to make full use of.

Therefore, SocialFi has replaced the outdated social platform and become the leading social concept in the repeated calculation of Internet Web3.0. The problems such as super centralization of social platform, market monopoly and content diversification are eliminated.

SocialFi has become the logical progress of GameFi concept. If the latter is limited to the monetization of customers' game behavior, that is, it is simply expressed through the P2E model, SocialFi will organically supplement it by adding a new model called Communication to Earn, which can be used as a part of the overall ecosystem or used alone.

Elements of SocialFi

At present, SocialFi is still a new concept, and there is no clear definition of the elements of SocialFi. However, generally speaking, the elements of SocialFi can be divided into Social (community), Content (content), DeFi (decentralized finance), DAO (decentralized autonomous organization).

Social (community): The success of Facebook, Instagram and other platforms is due to the connection between communities. SocialFi also follows the characteristics of this community and removes the centralized control of the platform, which has reached the goal of Web3.0.

Content: SocialFi is mostly produced in the creation channel. The content can be the creation and communication of text, art painting, music, etc.

DeFi (decentralized finance): SocialFi channels will sell SocialCoin and NFT to create value within the community.

DAO (decentralized autonomous organization): SocialFi does not have a central platform to manage the community, but everyone develops the platform steadily, so DAO (decentralized autonomous organization) has become a key factor.

Why do you need SocialFi?

Although we have been used to traditional community platforms for a long time, the concept of SocialFi came into being as they gradually expanded and problems continued to arise.

1、 Defects of traditional social network platform

1. The approval authority is too large and the standards are different

The platform manager can delete the creator's content at will, or even ban the user's permission; Moreover, the standards of platform approval are different. Some systems will delete some content that is no problem at all, but save the speech that advocates discrimination and hatred.

2. Exclusive algorithm

Another problem that seriously affects customer experience is the algorithm of the platform. Perhaps to obtain higher traffic or advertising revenue, the platform gives priority to pushing advertising content through algorithms, and removes sensitive content from their eyes, becoming a kind of change direction monopoly. In addition, the customer's personal information also often conveys concerns about being tracked or disclosed.

3. Unbalanced distribution of benefits

Although the global advertising market is expanding, it is difficult for creators to get advertising revenue through the platform. Therefore, there are often creators who write high-quality content and add traffic to the platform, but they may not be able to obtain corresponding benefits from it (for example, although there are numerous likes on Facebook and Twitter, the official will not award you, and you must attach a business adapter).

2、 SocialFi solves the problems encountered by traditional social media platforms

SocialFi can return the ownership and governance right of the platform to the customer through the decentralized system, and the entire community can formulate the review mechanism. At the same time, it can also bypass the annoying algorithm, so that the customer can only see the person he is tracking, without being harassed by advertisements.

At the same time, creators can also financialize their social popularity on the platform, and make profits through such mechanisms as sponsorship by likes and content mining, and the platform will not deduct huge service fees.

In addition, due to the high invasion cost of blockchain and the anonymity of customers, it can also adapt to the problem of personal information disclosure. Although this does not mean that they will never be invaded, at least the threshold will rise and customers will suffer less damage.

Speaking of this, I believe you have a certain understanding of what SocialFi is and why it is needed. In general, the emergence of SocialFi is just to deal with the problem of poor value transmission caused by "social network centralization" on the basis of blockchain technology. On the SocialFi platform, not only the platform and creative content are all owned and managed by customers, but also the communication economy has completed the decentralization of value transmission. After creating high-quality content, customers can directly get a token from other users to reward them without paying service fees to the platform, or get monetary incentives from the system according to popularity indicators such as likes and evaluations.