WE HAVE entered the information age and all spheres of our life gradually shift into the digital space. Social networks have long become a familiar environment for organising professional activities, scaling a business, and productive communication with access to billions of users. Therefore, people constantly strengthen their online positioning and invest not only effort, time, and energy, but also large capital: starting from the need to buy followers on Twitter, Instagram, Facebook, etc. to set up complex sales funnels and large-scale advertising campaigns. Now we increasingly see cases of Blockchain integration into social networks, which signals a new turn of marketing and building business processes.
How does a decentralised system work? Blockchain is a decentralised database that is stored simultaneously on multiple computers connected to the Internet. Blockchain is popular in the payments and cybersecurity industries because of its smart contracts and fast transactions. It incorporates a multi-layered verification system that is virtually impossible to hack because each element in the Blockchain contains cryptographic data for another element, and such information is immutable. The entire chain of transactions is stored on computers by many independent users. Even if one or more computers fail, the information is not lost.
Blockchain can be used not only for transferring cryptocurrencies but in the banking industry, cybersecurity, identity verification, etc. It is a technology for organizing all kinds of data.
What problems can Blockchain solve? First of all, Blockchain can solve the biggest problem of modern social networks: privacy. Our information is often sold to other companies or when a centralized social platform is attacked, our confidentiality is vulnerable. Blockchain is a technology that helps store data on a network of thousands of computers instead of using a single server. Therefore, data can be distributed but cannot be copied.
Second, the technology can reward authors for creating content. Today, original posts drown in an ocean of copied and shared content. This includes photos, videos, and written content. Therefore, many content creators do not receive remuneration for active participation in social networks, but invest heavily in its promotion: they buy Twitter followers, targeted ads, advertising inserts from bloggers, etc. A striking example of a decentralized platform with this feature is Steemit. System participants decide which content is of high quality, and the author, instead of likes and re-posts, gets paid for his work in Steem tokens and can exchange them for other cryptocurrencies or fiat on one of the exchanges.
Third, users no longer want social media to completely control their content or impose its services. With Blockchain, business owners get more accurate information about their audiences, and consumers can choose which ads they want to see, making targeting much more effective. In this way, businesses can dramatically increase the ROI of their marketing investments.
Fourth, this technology is the basis for secure online transactions. You can make secure consumer transactions directly on the social media platform without having to use any third-party payment system.
As a result, Blockchain has the potential to change existing social media, solve pain points, and greatly expand opportunities.
