The Future Potential of Blockchain-Driven Decentralization in Social Media

In recent years, although social media platforms remain popular, users are increasingly dissatisfied with the way large tech companies control their online social lives, whether through strict content control or personal data collection. This dissatisfaction has led to the emergence of many alternative applications. A new research report explores the potential of cryptocurrency and Blockchain technology to empower decentralized social media, an innovative social network model aimed at realizing a user-driven internet web3 vision. Although still in its early stages, "DeSoc" has already nurtured many decentralized applications, attracting millions of users to its on-chain social network concept.

Traditional web2 social media sites have revolutionized the way people communicate by connecting users globally. Over half of the world's population uses social media, and the most popular platforms generate billions of dollars in revenue. However, these sites also bring typical "web2" issues: large tech companies ultimately own user-generated content, content moderation teams can remove users from the platform, delete years of accumulated content, and immediately sever the connection between creators and their fans. These companies also profit by tracking and selling user data, while closed systems hinder innovation from third-party developers.

The DeSoc network has the potential to leverage Blockchain technology and other web3 features (such as tokens, pseudonyms, and Decentralization governance) to address these issues. In short, the goal of DeSoc is to ensure that users "establish direct relationships with the audience and with each other". Users can create accounts without providing personal information such as names or email addresses. They can join specific platforms that align with their interests while maintaining the ability to freely interact with users across multiple different websites using their decentralized accounts. Users can autonomously decide on content moderation policies. Users who wish to leave a website can easily migrate their account data (including usernames, posts, and follower lists) to other platforms.

Specifically, the DeSoc application offers several advantages that benefit privacy protection, support creators, and stimulate innovation, including:

• Freedom of Speech and Privacy Protection. Many DeSoc networks allow users to post using pseudonymous identities that cannot be linked to their real identities. With no central entity exercising control, users are significantly less likely to be affected by content removal and de-platforming. The immutable records on the Blockchain provide built-in tools for users who wish to verify their real identities across multiple platforms.

• Ownership and liquidity. Many DeSoc applications do not rely on advertising or data tracking, but instead raise funds by issuing native tokens. They reward users' participation by distributing additional tokens for posting or engaging in discussions.

• Innovation Incentives. Most decentralized applications are built on open-source code, which means that developers have free access to modify and build upon existing code. This model encourages collaboration and accelerates innovation.

A well-known social media company recently launched its own microblogging application, attempting to leverage at least some of the aforementioned advantages. Although the app's appearance and functionality are similar to those of traditional social media websites, the company stated that it will be compatible with ActivityPub, a decentralized social networking protocol that allows accounts to be hosted on independent servers. This decentralized structure enables users to have better control over their data and allows them to easily interact with other networks on the same protocol.

However, the DeSoc network also faces some specific challenges, mainly related to usability and content moderation. For example, its decentralized nature may make it difficult for users to find specific friends and content. Due to the numerous websites, searching and navigating can be confusing. Sometimes, a site-by-site moderation approach may lead to de facto content moderation across the entire network. In light of these reasons, it is crucial for policymakers to understand the DeSoc network and the regulatory areas involved.

Like all decentralized applications built on Blockchain, the DeSoc application has the potential to increase freedom and opportunities globally by empowering creators with greater ownership and control over their content and networks. Blockchain, as a groundbreaking technology, enables direct peer-to-peer information sharing and allows for various applications that benefit from Blockchain's efficiency, transparency, and accessibility. In the on-chain world, transparency and trust are built into the Decentralization protocols themselves, and as technology evolves, these safeguards will only continue to strengthen. Therefore, legislators and regulators focused on social media should concentrate their efforts on centralized participants who require additional transparency and information disclosure.