It’s been 20 years since MySpace was founded—the first of its kind social networking platform that brought us Top 8, MySpace Tom, and profile page music. As we look back on MySpace and the subsequent launch of Facebook, Twitter, Instagram, and TikTok, among many others, we’re reminded of the initial intent behind this technology.

Why SocialFi Matters

SocialFi—the convergence of social media and decentralized finance—is a burgeoning and promising alternative that combines accessibility, monetization, digital ownership, and scalability, all while inherently protecting influencers and creators under a more sustainable revenue model.

TikTok recently tapped into a concept well-known in sociology known as the “third place,” offering a new, accessible social environment for everyday users.

The Rise of Decentralized Platforms

Decentralized social media platforms are disrupting traditional compensation models by incorporating the inherent benefits of web3 into the industry. Payments are made directly to the creator using cryptocurrency or other digital assets (think NFTs) instead of fiat currency—thereby cutting out the middleman, like Facebook or TikTok. Decentralized platforms allow creators to set their terms for compensation. Smart contracts automatically distribute payments, ensuring creators receive their fair share without intermediaries taking a cut.

Benefits of SocialFi for Advertisers

For advertisers, SocialFi offers enhanced data analytics across the entire blockchain ecosystem, allowing for more targeted and efficient advertising strategies. Smart contracts in SocialFi bring transparency and fairness to revenue distribution, addressing the issue of platforms potentially misreporting earnings.

What to Expect from SocialFi

The promise of SocialFi is clear—more control for creators, better compensation models, and stronger digital communities. Despite immense potential, adoption remains slow. To fully tap into the power of decentralized platforms, we need intuitive user experiences that smoothly onboard new users and clear education on the technology and its benefits.

As we enter the next crypto bull run, now is the time for investors and VCs to pay more attention to the social media space. By relentlessly focusing on simplicity and mainstream needs, decentralized platforms can transform not just social media but the entire creator economy.

“The companies that solve ease of use while communicating the core value of decentralization will lead the pack.” – Rick Porter

Rick Porter is the co-founder, CEO, and CTO of DSCVR. He has a deep technical background leading cutting-edge AI/ML, big data, and crypto projects at Google, Boston Consulting Group Digital Ventures, NAX Group, and Accenture. He built early social products at Myspace and has been the CEO and CTO of various startups, including Max Level Labs, FateLabs, and FanBacked. Rick holds a bachelor’s in computer science from the University of Maryland.

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