Name: Will Decentralized Social Media replace Facebook?
Brand: substack.com
SKU: substack-com-226
Availability: OnlineOnly

critic

Will Decentralized Social Media replace Facebook?

preview

SubscribeSign inShare this postWill Decentralized Social Media replace Facebook?nextrope.substack.comCopy linkTwitterFacebookEmailNov 15, 2020Share this postWill Decentralized Social Media replace Facebook?nextrope.substack.comCopy linkTwitterFacebookEmailHi,Today we’ll discuss:&nbsp; ❗️&nbsp;&nbsp; 🔺&nbsp; 📈&nbsp; ❓&nbsp;&nbsp; If you have any questions, please don’t hesitate to ask as I am happy to answer them. Also, if you are working on any fintech or blockchain projects and would like to be featured in our newsletter, please reach out to me - a.shah@nextrope.comNot financial adviceWe have done our best to ensure that the information provided in the Newsletter and the resources available for download are accurate. However, the information contained in this Newsletter and the resources available for download are not intended as, and shall not be understood or construed as, financial advice.I want to start this week’s newsletter with some facts which illustrate the extent of social media usage in today’s society.-&nbsp;&nbsp;There are over 3.5 billion active social media users, which is half of the world’s population.-&nbsp;&nbsp; 91% of all millennials have at least one social media account and spend an average of three hours a day on those platforms.-&nbsp;&nbsp; Social media platforms generated $125 billion in advertising revenue in 2019-&nbsp;&nbsp;&nbsp;Kylie Jenner was paid $1.2 million for a single post on Instagram in January 2020As shown in the graph above, social media’s success has been quite sudden and shows no indication of slowing down. One exception is that the number of Facebook accounts first decreased in 2018 and the platform lost 15 million US accounts by the end of 2019. The surge in social media came with significant backlash and attention, causing users to be wary of these platforms. The recent Netflix docu-drama ‘The Social Dilemma’ made this conversation mainstream, tackling the problems of censorship, opinion curation, depression, and polarization in relation to social media platforms. Amidst this debate, people have begun to ask for an alternative. The most attractive option currently seems to be that of Decentralized Social Networks (DSNs).I first heard about DSNs when Brittany Kaiser, known widely as the whistleblower of Cambridge Analytic, was invited as a guest speaker to my class. She was working on the board of one such DSN called Voice and described the concept as “paying users to do what they always do anyway.” In addition to Voice, I found some popular ones such as Steemit, SoMee Social, Voice, Hyprr, etc., and researched each platform. These DSN platforms typically run on the blockchain and incentivize both the creator and the curator to engage by offering rewards in cryptocurrency. While the details vary across platforms, most share the post, repost, reply, and react functions. Posts are then ranked according to the weight (more on this later) of the reactions received. These rankings determine the monetary payout to both the author of the post and those who interacted with it by reacting and replying.These rewards are generated by advertisements and are a key element in attracting users and content creators. The rewards also incentivize content creators to create posts that would generate more positive reactions and for the content curators to vote on posts with higher earning potential. I have detailed the general process in the infographic below.Source: Nextrope Insights ResearchAverage social media users –Source: SoMee SocialSocial Media Influencers -DSNs on the other hand, allow content creators to generate money without directly advertising, allowing them to focus on their content and the loyalty of their fan base. This is possible because their monetary return is linked to the number of likes they generate and not on how they sell space on their profile to corporate companies. There are plenty of stories about influencers who have earned thousands of dollars in a few days by posting good quality content. A few people have even posted that they quit their day jobs and took up posting on DSNs full time. I found that the highest income a post has ever generated on DSNs (Steemit) is $47,000.Advertisers -It is believed that DSNs are immune to these challenges since all information is stored on the blockchain, ensuring transparency, and restricting any scammers from owning the data. Furthermore, real-life peer-to-peer interaction can be tracked to avoid bots. This will lead to significant savings for the advertisers and enhance the overall quality of advertisements.DSNs have now been active for at least 4 years and have attracted significant attention. Despite the discussions of their advantages and potential, there has been a fair share of criticism as well.Level of influence – Source: SoMee SocialThere are two ways of generating voting power: (1) organically posting and liking others’ posts, and (2) inorganically buying the coins on a cryptocurrency exchange. Therefore, there is a clear advantage for wealthy and famous users. By this logic, the value of some accounts will increase exponentially while others will face meager gains. I found that it has been estimated that 10% of the Steemit users own as much voting power as the rest and are able to use this influence in various ways on the platform.Censorship -Authenticity –Income volatility – Level of decentralization -DSNs’ potential seems limitless and the growth of this industry is the center of many crypto enthusiasts’ attention. Still, DSNs must navigate through their challenges as an increasing number of users demand change. Even if DSNs fail to go mainstream, they will force existing social media platforms to be more mindful of the way they treat their users.Like this postShare this postWill Decentralized Social Media replace Facebook?nextrope.substack.comCopy linkTwitterFacebookEmail3 CommentsFor your security, we need to re-authenticate you.Click the link we sent to , or .Expand full commentExpand full commentNo posts© 2022 Nextrope ∙ ∙ &nbsp;is the home for great writingThis site requires JavaScript to run correctly. Please or unblock scripts

SubscribeSign inShare this postWill Decentralized Social Media replace Facebook?nextrope.substack.comCopy linkTwitterFacebookEmailNov 15, 2020Share this postWill Decentralized Social Media replace Facebook?nextrope.substack.comCopy linkTwitterFacebookEmailHi,Today we’ll discuss:&nbsp; ❗️&nbsp;&nbsp; 🔺&nbsp; 📈&nbsp; ❓&nbsp;&nbsp; If you have any questions, please don’t hesitate to ask as I am happy to answer them. Also, if you are working on any fintech or blockchain projects and would like to be featured in our newsletter, please reach out to me - a.shah@nextrope.comNot financial adviceWe...

public

Nextrope

A place for independent writing. We make it simple for a writer to start a paid newsletter.

Will Decentralized Social Media replace Facebook?

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS