The blockchain sector has long hoped to achieve global adoption. Blockchain-based changes are also anticipated for social media networks as the technology gains traction in various industries. According to Nasdaq, an American stock exchange, blockchain technology can open up opportunities for social finance (SocialFi), which is the fusion of social networks and finance to create decentralized social applications, in addition to protecting against data scams ill-informed algorithm changes, and unnecessary content censorship. Blockchain wants to revolutionize how companies engage with their audience on social media. Web3.0 ideas can encourage content producers and guarantee transparency on social media sites. According to Sakina Arsiwala, co-founder of Taki, a Web3.0-focused platform, businesses can leverage social media to access the build-operate-transfer (BOT) functionality of self-running software on the Internet using blockchain.

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According to experts in the field, social media can guarantee protection against false information by using blockchain. Without the influence of a centralized server, a blockchain-based approach to social media addresses can offer control over user-generated information. According to data from the technology-focused information site tech jury, the cost of blockchain solutions will be $11.7 billion globally by CY2022. “Blockchain offers a decentralized method for distributing data and safeguards authenticity. By using encryption, blockchain renders data immutable, making data modification impossible. According to Abhay Aggarwal, creator, and CEO of Colexion, a non-fungible token (NFT) marketplace, “Blockchain can provide data security and user accountability.”

Peer-to-peer data and value exchange can be made viable, according to Vikram R Singh, founder and CEO of Antier, a blockchain development, and consultancy company. In addition to protecting user privacy, he continued, “blockchain-oriented social networks can use NFTs to elevate social commerce, manage and authenticate content providers, lessen ad fraud, and support metaverse platforms.” Furthermore, it is projected that blockchain-enabled social media would positively impact a number of industries, including business networks, trade, and news dissemination.

Why should social networks need to use blockchain?

As it stands, social networks are far from perfect, still, they are being used by almost half the world population. To understand how blockchain can influence this sector, let us first discuss the problems with the current social media scene, and what impact do they have on people and the network.

1. Content creators lose out

What social media does is give content creators their 5 minutes of fame, a million likes, followers and what not. What it doesn’t give, is any monetary benefit. All the gains go straight to the people running these social media platforms, and not the content creators themselves. Even with platforms like YouTube and Twitch which do reward creators, the compensation isn’t enough to justify the effort that some people put into their content. This is a big reason as to why more and more content creators look to switch up their lines of work, except the ones who do it for the love of what they do.

2. Prone to data breaches and hacks

Social media platforms usually house data on huge servers that can be hacked by people with malicious intent, if not easily. The thing is, with a single point of operation, it leaves the whole network prone to hacks and breaches, as hackers have to take down only the central node in order to disrupt the whole network. Also, the problem of unauthorized data access is a big one, as proved by the Facebook and Cambridge Analytica scandal.

3. Content authenticity

Fake news has been trending more than ever in recent times. Due to the massive influence of social media, word gets around, even if it is fake. People are always on the lookout for spicy stories or gossip and will share the same, even if there exists no proof to back it up. Addressing this issue on the personal level seems difficult due to the current system in place.