1.The justification of the emerging decentralized social media
Social media platforms in Web2 era are monopolized by big tech without exception, which naturally leads to monetization of social platforms relying on massive user data. It’s undeniable that social media platforms have a lot of user data in hands. As a result, both the authorities and users are critical of the monopoly. However, using blockchain technology to ensure accountability, openness and ownership of data will help alleviate these problems.
The blockchain technology that decentralized social networking relies on does maintain users’ ownership of social content and data to some extent, but the value of this ownership varies from person to person. For Key Opinion Leaders with a large number of traffic and fans, their authority will not be compromised during the migration from Web2 to Web3.When it comes to the ownership of social data, Web3 can provide more channels for monetization, but the content ownership is not so important for most people. At least in the scope that most people can see, whether it is the launch of fan tokens or the hype of personal brand NFT, the political correctness of the narrative of decentralized social networking has given rationalization and indiscriminate endorsement to the way of monetization.
Therefore, with the current limited population of Web3, it is hard to imagine how many users a decentralized social media platform can reach to if it is only “reinvented” in the Web3 space based on the logic of creating social products in the Web2 space. In the Web3 space, although social networking is needed, at present most using scenarios can be completed with the help of Web2 products. Most times, the so-called “anti censorship” and the ownership of social data can not really drive Web2 users who have been immersed in Internet social platforms for 20 or 30 years to overcome many difficulties and migrate to Web3.
2. Why DAO has social attributes by nature
Web2 has been witnessing the rise of social media, through which the combination of social graph and advertising business model continues to create economic value. However, what came with it is the negative influence brought about by monopoly. Web3, based on blockchain technology and cryptocurrency, has a higher degree of decentralization, transparency and defined ownership. Web3 does have a certain impact on people’s thinking pattern at present, although this impact is more often embodied in a new ideology brought about for users. DAO plays a pioneering role in this, which also means that controversy is inevitable. Here we need to distinguish between social-based DAOs and DAO-based social platforms. The example of the former is FWB, while the latter in most cases is the future form of many decentralized social platforms.
Social-based DAOs are designed to bring like-minded individuals together in communities around specific tokens. FWB and $FWB token are the best examples. Members must apply to join FWB and purchase certain tokens as a prerequisite. Membership includes access to famous crypto KOLs, artists and special activities. Members of DAO build a community around a token. Social-DAO is still in its early stage, and still needs time to tell which models are effective.
DAO is inherently social. When a DAO is formed, social networks formed by a group of people who unite to achieve common goals will naturally appear. A DAO can only operate effectively through communication and governance, but there is no necessary requirement to communicate based on decentralized social platforms in this process. Social-based DAOs exist based on the purpose of decentralization, while DAO-based social platforms pay more attention to the form of decentralization.
DAO naturally aggregates the contributions of all members and forms a shared social network. Today’s social media is centered on User Generated Content and the creator economy. However, platforms receive most of the revenue generated by users’ content. The blockchain technology which Web3 is based may reward members’ contributions by allowing creators to form a DAO, so as to realize two-way realization in this process.
3.Conclusion
From a more realistic perspective, most of the teams behind decentralized social platforms do not have much experience in building social products. Instead, they have all the passion for the grand narrative of Web3, and usually lack an in-depth understanding of what users really need. Moreover, Web3 users are small in population for the time being, but for any social platforms to develop and rise, a large number of users is a must.
In this regard, both Web2 and Web3 social platforms face the same challenge. Therefore, building social products in the Web3 space should avoid trying to be “large and comprehensive”, and it is better to start from specific user scenarios, such as a tool based on DID that could better promote the transaction by providing buyers and sellers a more efficient communication tool.
Musk and Jack Dorsey both openly opposed the current situation of a too centralized social media, and also provides some perspectives from Web2 social media. Therefore, the trend of decentralization of social media is irresistible, but for tech giants, it is unimaginable to govern the operation and development of the platform through DAO. However, this also leaves enough time for Web3’s native decentralized social products to explore possibilities. Decentralized social networking will also inevitably run into DAO. But for both DAO-based decentralized social network and social-based Dao, there is nothing but possibilities.
About BOOM
BOOM is a SocialFi platform connecting Web2.0 and Web3.0. Since it was launched in January, the early users have surpassed 100,000 and Boom has now become the most popular decentralized Crypto Lovers community in 2022.
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