Scams like the recent $SQUID rug pull highlighted a clear knowledge gap in the industry, with scammers preying on new investors. Despite this setback, many investors and crypto enthusiasts remain bullish on the sector and DeFi's future. But what exactly will Defi's future hold? For many, SocialFi may be the necessary change.
SocialFi is a new Defi perspective that focuses on both social and financial advancements. Through the financialization and tokenization of social influence, SocialFi aims to provide users with benefits and rewards. Furthermore, this would address one of the most serious issues we currently face in our social systems which is: monopolies.
Instagram and WhatsApp are two examples of how Facebook dominates the industry. YouTube dominates the market, allowing established content creators to monopolize those just starting out. SocialFi aims to change this by empowering creators and enabling more people to participate in the creator economy.
Another advantage of SocialFi is that it will lower the barrier to entry for new users looking to get involved in the cryptocurrency space. At the moment, new investors are vulnerable to fraud. It's difficult to know where to look with every project claiming to deliver the best results. SocialFi would provide a risk-free environment for new investors to learn.
Although it is still in its early stages, SocialFi has the potential to have a significant impact on cryptocurrency and blockchain, as well as how we interact socially around the world. Several new projects are now aiming for this goal. Torum is an exciting new project that is at the forefront of this development and is creating the SocialFi Metaverse of the cryptocurrency space.
Read Must: TradeFi and Crypto
What is Socialfi in Crypto?
The blockchain and cryptocurrency industry has long strived for mass adoption. Almost every company in this space strives for mass adoption in some way. However, with slightly more than 300 million crypto users and 70 million blockchain wallet users, there is clearly a long way to go. Deterrents to mass adoption have been attributed to factors such as a lack of government recognition, a lack of understanding of the technology, and high-risk factors. The main deterrent in this long list is the lack of a strong enough use case.
The internet was in a similar situation in the early 2000s. There is a lot of potential but little value. However, the introduction of social media, particularly Facebook, in 2004 altered the entire dynamic. The internet saw an influx of new users from all over the world that saw it as one of humanity's greatest innovations.
Even after two decades, it is social media that has the potential to propel the blockchain-space to mass adoption.
Facebook is estimated to possess over 2.89 billion users as of 2021. And after deciding to communicate on Web 2, Facebook recently made the move to Web 3. The corporate now calls itself Meta and is within the works to create the world’s biggest social media metaverse. When this unfolds alongside Facebook’s cryptocurrency Diem, nearly 3 billion people worldwide could also be introduced to cryptocurrencies and blockchain.
Blockchain is prime to operation within the metaverse. Digital assets such as NFTs will define the ownership of Metaverse, while cryptocurrencies will power the new digital economy. Thus, Facebook's move to the meta is an indirect boon for the blockchain industry.
Moreover, even Twitter is now getting to integrate cryptocurrencies into the platform with things like Bitcoin tipping for creators. Given Twitter's huge user base of 192 million active users per day, Bitcoin chips sound like mass adoption. Reddit also supposedly has plans to make an NFT marketplace within the near future and there are rumors about the platform converting people’s Karma points into crypto tokens. With the world’s major social networks taking strides to include blockchain technology at their core, a big portion of the world’s population could hop on the crypto bandwagon.
While Facebook, Instagram, Twitter, and YouTube are now synonymous with the word social media, this is often probably close to change soon. Blockchain technology is parturition to a replacement wave of social networks that would be bigger and even better. These new networks take the prevailing social models and provide them superpowers. Data fraud, non-informed algorithm changes, and censorship of unwanted content can be a thing of the past. This is often because these new social networks are owned and travel by the community.
Along with this, they also bring the likelihood of social finance (SocialFi). Social influence is encoded in these networks and users can directly benefit financially from influence on these platforms.
The rise of those new social networks and their SocialFi integration is perhaps one among the simplest uses of blockchain technology and will be at the helm of mass adoption.
Introduction to Torum plateform
Torum platform- A comprehensive and scalable Crypto Social Media Platform serving because the powerhouse of the whole SocialFi ecosystem attaches worldwide crypto projects and users.
Immerse Yourself during a Cryptocentric Universe. Dive into a totally crypto-focused, socially gamified atmosphere and unite with our lovely community from all round the world. Regardless of if you are a crypto newbie or a blockchain veteran, Torum is full of various features and functionalities to fit your needs within the world's first ever crypto social metaverse.
With a hybrid-decentralized crypto social media serving because the backbone of the whole ecosystem, the integrations of Torum NFT Marketplace and Torum Finance succeed as complementary additions to attach crypto projects and users of various interests from all round the world; pioneering and realizing the world's leading SocialFi metaverse.
Torum is looking to tackle one among the most important problems within the cryptocurrency industry that is scams. Much of the industry has justified it, but scammers are still successful. Although investors can research projects in apps like Telegraph and Reddit, scams still impact the industry. How can we project new investors?
Torum’s solution may be a SocialFi ecosystem that new and experienced crypto investors can trust. Within this ecosystem, various needs within the community can all be met during a single place. For instance; an indoor NFT marketplace will empower crypto artists to sell to a community that's actively trying to find their pieces.
The NFTs hook up with Avatar NFTs, which can unlock a replacement identity within the Metaverse. Additionally, to those benefits, Torum Finance will allow investors to participate in liquidity farming and interactive gamification. With crypto enthusiasts beat one place, blockchain projects can find their ideal target market, which can allow both them and their users to profit.
The SocialFi industry is still in its infancy and has thousands of potential applications. Within the future, SocialFi could also be an important a part of society, with small communities providing the chance for content creators to thrive.
SocialFi NTFs New trending on Social media
NFTs are revolutionizing the planet with their innovative technology, and lots of industries have experienced rapid changes. A decentralized, open and user-controlled ecosystem, SocialFi protects the privacy and safety of users and therefore the ownership of users' personal assets. As the SocialFi project gets more attention, social media giants such as Meta, Twitter, and Reddit are expanding their space exploration through NFT integration into the platform. In this article, you’ll learn what SocialFi is and why major social media platforms are adopting SocialFi by venturing into the planet of NFTs. DeFi, NFT and crypto are trending on social media since 2020. But what does one get once you merge social media, DeFi and NFTs all into one? A strong ecosystem called SocialFi.
The current model of social media landscape as we all know is inherently extractive. Most major platforms capture and sell user data, providing increasingly annoying ads. However, with the building of Web 3.0 and therefore the metaverse, we collectively witnessed the explosive growth of DeFi and NFTs making headlines internationally. We also saw well-established cryptocurrencies like Bitcoin and Ethereum, and even a get few altcoins rise to new highs. Thereupon said, what more will the longer term of DeFi hold? This is often where SocialFi comes in.
Social in Web3.0
The world is undergoing several digital adjustments, and if you're not careful, you'll be overlooked. Within the early 2000s, it seemed as if this adjustment was slowing down until 2015, when the covid-19 pandemic catalysed the adjustment. Although, the pandemic acted as a catalyst for digital adjustment, there have been already laid out plans able to be executed.
One of the already laid out plans concerned internet usage: an idea that might advance the web to Web 3.0. Web 3.0 was to cause changes in social media operations and cryptocurrency trading.
Web 3.0 is made on a decentralized blockchain technology system and can offer everything a decentralized system offers. These features of decentralized blockchain technology have contributed significantly to the features of web 3.0 that have influenced the operation of social media in the era of web 3.0.
Data privacy therein won’t involve a 3rd party in your affairs. You’ll decide as you would like, keep your information from the general public, and share the knowledge you would like to share. Also, this feature helps to unravel the free speech hindered by web 2.0, where contents were regulated. On web 3.0, you'll share contents you would like to share and who you would like to share without worrying of being sanctioned.
Web 3.0 will provide you with protection from hacking because it is with other decentralized systems. It's difficult to hack the system and therefore the accounts on the system since the system don’t involve a 3rd party.
At an equivalent time, Web 3.0 is going to be offering the peer-to-peer feature allowing you to attach and network with people without an interception.
In addition, Web 3.0 provides complete anonymity for users. Users can also create alternative value systems for attaching and interacting.
Another critical effect of web 3.0 on social media is that the mining technique that features. Web 3.0 can analyse posts, comments, and likes from users. By this, it’ll be easy to suggest content to users and ensure an excellent user experience for users.
Web 3.0 also has a big impact on how information is stored in the data hub. Web 2.0 stores information in centralized storage such as Google, Microsoft, and Amazon, but Web 3.0 allows users to store information in distributed data hubs. However, the challenge of storing data on decentralized storage hubs is creating an influence storage system.
In addition, Web 3.0 provides users with complete anonymity, allowing them to have a single identity and be the only user with access to data and assets. By this, they don’t even need the permission of external bodies to realize access, as they own their assets completely and may access them anytime. Experts say you'll be ready to access your assets and services from anywhere for free of charge, and that they will solely be yours.
Finally, on Web 3.0, you'll be ready to access 3D information and perform virtual events. Some virtual events you'll carry are playing games, attending spaces, commenting, and reactions to comments.
Why SocialFi going to be the next big thing?
Social networks are one among the distinguished pillars of the fashionable web.
Many influential personalities’ use social media to revenue by sponsorships, that are gained based on their engagement charges.
Because of the looks of blockchain and therefore the digital asset area, many industries are discovering new methods to function, and social media isn’t any completely different.
A fresh idea that’s rising from the crypto area is SocialFi. SocialFi may be a fusion of social, web3.0 and finance that provide rewards and advantages to customers by tokenizing social affect.
One firm which will be a chief within the SocialFi area is Torum. Torum is that the primary SocialFi ecosystem created for crypto customers. Their ecosystem features crypto-friendly social media platforms, NFT markets, harvest farming platforms, and Avatar NFTs.
SocialFi is a clever new technique to monetize social interplay and permits pals to connect and study extra concerning the crypto area. Clients can unleash a paradigm new approach to group interaction and new blockchain initiatives by exploring the metaverse created through the combination of social media and funding. SocialFi makes it simpler for newcomers to enter in the other case intimidating area by a socially charged group that advocates blockchain and blockchain-related initiatives.
Conclusion
The SocialFi platform is still in its infancy, but some initiatives have already shown great potential. Certain projects like DeSo are ready to secure over $200 million in funding, while others have already penetrated the market and have a working product available.
Torum may be a prime example of a successful SocialFi project, standing out amongst its competitors with over 200,000 users. Specifically designed for the crypto community, Torum may be a protocol that mixes social media with a yield farming hub, an NFT marketplace, and an avatar NFT for metaverse enthusiasts.
SocialFi can undoubtedly have a positive impact on the planet, ensuring users are rewarded for putting up with ads, content creators receive a good share of revenue, and knowledge flows freely despite the needs of massive tech.
Similar to how we witnessed a boom during the DeFi summer of 2020, we can also witness an identical event for SocialFi and blockchain-based social media during 2022. A replacement wave of highly innovative networks might be liable for accelerating the adoption process. If successful, many disillusioned users will welcome the chance to depart Facebook and Twitter with glee.
