Web3 Is Already Reshaping Dynamics On Social Networks

Channels like Facebook, Instagram, and Twitter have become go-to destinations for all manner of social interactions since they arrived on the social media scene. We share our thoughts, opinions, and feelings on these platforms to stay connected with friends and family.

According to the 2021 Digital Report, more than half of the global population uses one or more social networking sites. While there is no denying that Web2-based social media platforms have managed to position themselves as an indispensable part of our daily lives, there are some major challenges that Web2 social media platforms haven’t been able to overcome.

For starters, the existing social media platforms are heavily centralized. There are growing concerns about data privacy and data ownership. A handful of people control the content published on these platforms and the associated monetization opportunities, chipping away at the benefits that users should ideally receive.

Blockchain technology has emerged as the natural solution for these challenges, primarily because of its decentralized nature and trustless framework. As the technology continues to evolve, incorporating novel features like NFTs, gamification, tokenization, and more, blockchain’s influence on existing social media networks is growing faster than expected.

How it all started

In 2021, NFT PFPs (non-fungible token profile pictures) became a huge trend. It spread like wildfire, and almost everyone started using tokenized artwork and avatars as their profile pictures.

Realizing this, Twitter rolled out a feature that allowed users to connect their digital wallets to verify NFTs. It enabled NFT owners to flaunt their identity on the platform using hexagon-shaped profile pictures and connect their wallets. Anyone could tap on the profile picture and see the details of the NFT PFP and its ownership. Although a promising initiative, it didn’t take off as expected, mostly because it was only available to users who had the Twitter Blue verification service.

Twitter had earlier rolled out its Tips feature, enabling users to accept payments in fiat and crypto. It initially supported BTC by allowing users to add links to bitcoin wallets and third-party payment services like Lightning Network on their profiles. It was initially introduced in May 2021 as an exclusive feature for selected users before eventually being offered to all users in September. In February 2022, Twitter also expanded this feature to support Ethereum wallets.

According to Twitter, these new features are aimed at promoting content creation and engagement while at the same time enabling content creators to monetize their content. By leveraging bits and pieces of blockchain technology, Twitter took the first steps toward building a creator-centric ecosystem.

What’s happening now?

These days, Web3-native social media startups and projects are popping up left and right. Even existing Web2 platforms are either fully transitioning into the Web3 model or integrating one or more blockchain-powered features.

Taking a cue from Twitter, Meta CEO Mark Zuckerberg launched “Digital Collectibles” on Instagram. This feature enables creators to connect their digital wallets and choose which NFTs they want to share on Instagram. Initially, Meta has rolled out support for Ethereum and Polygon blockchains, with Solana and Flow in the pipeline. Users can currently connect their MetaMask, Trust, and Rainbow wallets, with Meta adding support for Dapper, Phantom, and Coinbase wallets in the coming months.

Likewise, viral short-video creation app TikTok, too, has rolled out Web3 functionalities by entering into a strategic partnership with Immutable X. By tapping into the features of Immutable X’s layer-2 (L2) scaling solution for Ethereum, TikTok has dropped its first-ever NFT collection called “TikTok Top Moments.”

This initiative is designed to connect TikTok’s most influential creators like Lil Nas X, Bella Poarch, Brittany Broski, Gary Vaynerchuk, and dozens more to the leading NFT artists. In the future, TikTok will unlock this feature for other prominent creators, allowing them to mint their own NFTs and list them on secondary marketplaces, thereby opening an additional revenue channel.

The best part is that it’s not just the big platforms that increasingly embrace Web3 technology. Beyond the western world, Web3 social platforms like Taki are redefining how we view and use social media. Taki, built on the Solana blockchain, is enabling content creators, especially in the Asian market, to tap into novel monetization opportunities.

Taki has positioned itself as a token-powered, engage-to-earn social network where anyone can earn by posting content and chatting with others. As the platform expands, it will unlock monetization opportunities for all aspects of social networking, such as content curation and community management, among others.

On top of the token-based rewards, platform users also receive a stake in the platform itself. By leveraging blockchain technology and Web3 features, Taki rewards user contributions while at the same time nurturing creator-audience relationships and unlocking new engagement vectors.

Crypto industry heavyweights, like the popular DeFi lending platform Aave, are also expanding into the Web3 social media ecosystem. Aave’s founder Stani Kulechov recently announced the launch of Lens Protocol on the Polygon blockchain.

As a Web3-native platform and ecosystem powered by NFTs, Lens Protocol aims to overcome the challenges of existing platforms like Twitter and Facebook. The goal is to help creators control how their content is distributed and monetized by moving away from the Web2 concept of "users being the products."

The future will tell

Blockchain technology and Web3 are still evolving, but the promising developments already being incorporated give credence to the extensive possibilities the future holds. Accordingly, it is just a matter of time until these disruptive technologies will collide with Web2 primitives, granting users more control over their content, data, and revenue. Driven by novel concepts like engage-to-earn, play-to-earn, and the metaverse, social networking could be due for a serious facelift that rebalances the value proposition to increasingly favor user-centric activities.

(Reuben Jackson is a blockchain security consultant.)