Blockchain-based social media platforms are decentralized platforms that enable smart contract and application development. They provide end-to-end encryptions for each interaction, helping users have more control and privacy over their information. Blockchain social media platforms offer significant benefits, including crowdfunding, in-platform transactions, and gifting users with exclusive offers.
Since blockchain social media platforms are decentralized, they aren't under any centralized authority controlling all the data. Instead, the data is stored in a decentralized, homogeneous form across each network's node servers. These platforms support content sharing, social networking, and blogging. Here’s how social media platforms work on the blockchain.
How decentralized social media works
All blockchain social media platforms fall into decentralized social media. Data is stored in a decentralized social network in a distributed ledger system, meaning no central or proprietary authority can hold any data. This gives users freedom of expression and better control and privacy over their data. Multiple decentralized social networks can create a fediverse, an interconnected server collection meant for online activities like blogging and web publishing, and social networking.
Tokenized economies are a significant driving force for blockchain social media's increased revenue. Tokens hold monetary value, let users pay for services, and create more monetization platforms. Blockchain social networks fueled by cryptocurrency tokens develop a system where users get rewarded for their contributions. This maximizes engagements and boosts the token value.
Open-source social media
Open-source social media is a decentralized social media network extension. It uses blockchain or peer-to-peer technologies and lets users self-host without infringement of privacy or freedom of speech. Open-source social networks enable users to learn how social media algorithms function. Users don't have to log into central websites like Twitter and Facebook. Instead, they can join instances and decide whether to keep them private or public.
A check on user commodification
Thanks to end-to-end encryption and the absence of third parties and peer-to-peer networks, it’s impossible to gather and utilize personal information without consent, giving users more control over their data. The use of public and private keys ensures this. With a private key, a user initiates a transaction whose details are kept in a data block in the blockchain.
Data is stored in these blocks in a cryptographic hash form. They're one-way algorithms, meaning the hash can't be decrypted to access the original data. Every hash is unique, and each unique data generates a different hash. A minor change in the data also creates a different hash. This means the data stored in blockchains is immutable, and the records cannot be altered, ruling out the possibility of identity theft, data breach, and user commodification.
Privacy and freedom of expression
All interactions on centralized social media platforms are accessible to the platform moderators, severely threatening users’ privacy. However, blockchain social media platforms have decentralized mechanisms to ensure privacy while helping realize users’ rights to freely express themselves. The distributed ledger technology allows users to transact privately because only the sender and recipient will know the transaction contents.
Scope for crowdfunding
Blockchain social media not only offers non-monetary benefits it also provides materialistic rewards. Some decentralized social networks gift users for posting on their platforms. Like most blockchain ecosystems, these rewards are usually in the form of the platform's cryptocurrency. Additionally, blockchain social media networks allow users to conduct crowdfunding campaigns following similar processes to token sales effectively. They also use the native cryptocurrency to promote user-to-user financial deals.
Control and security
Open source and blockchain social networks let users access and take charge of the algorithms behind functionality and features. A user can source-specific information by self-hosting any network or modifying the algorithm. Users can also control their feed without third-party meddling. The data is also stored in a decentralized server network, ensuring that no one can access it without authentication.
Users can save their content permanently
Since traditional social media networks are centralized, users’ data is not in their control. Anybody can edit or permanently delete the shared content without the users’ permission. Blockchain launched Minds, a decentralized social media network that lets users save their content permanently and ensures that no one can delete it once published. This platform offers options to users where they can delete all past activity traces if they want to.
Content producers get paid for creating and sharing content
Blockchain-based social media networks enable users to have full control over how and where their content is distributed. This improves their capacity to benefit from passive income production. Decentralized networks also reward users for posting on their platforms.
Decentralized social media platforms prevent power consolidation in a few centralized social networks. They give users the freedom of expression while enhancing control and security.