The Intersection of Social Media
and the Blockchain
Every major social media platform has offered users
a way to communicate with others and earn social currency, such as followers, traffic to their content, likes and retweets. Now, a new breed of social media networks has emerged – one that uses blockchain technology to build platforms enabling users to control their data and escape the censorship imposed by the likes of Facebook and Twitter. In addition, these new social networks reward users with cryptocurrency.
One such new social media platform is Steemit , which runs on top of a decentralized network known as Steem. Steemit rewards users with its own cryptocurrency in addition to social currency. Much like Reddit and Facebook, Steemit uses its incentives to encourage users to post, share and react to content. When someone likes or upvotes a post, it becomes more visible on the site. Steemit rewards the original poster with Steem digital currency that can be exchanged for real cash via Bitcoin or reinvested into "Steam Power," a token that represents how much influence a person has on the Steemit platform.
So, the more Steem Power people have, the more their upvotes will count. Steem Power also allows users to earn additional Steem Power and Steem Dollars from the platform. Put simply, "Steem is a blockchain database that supports community building and social interaction with cryptocurrency rewards," according to the company. Last year, Steem issued a $1.3 million payout to Steemit users. Half was distributed in Steem Dollars, each worth about $1, and a half in Steem Power.
"Because it's based entirely on a blockchain, Steemit shows what social media can look like without censorship," said Steemit CEO Ned Scott at the time. "Everything we see on Steemit.com comes from the open source Steem blockchain, so the entire network is replicable on any front-end application." Another example of a decentralized social network based on the blockchain protocol is AKASHA, which uses the Ethereum blockchain to store user-created content.
AKASHA lets users publish, share and vote for entries, much like Medium and other modern publishing platforms. The difference, though, is that user content is published over Ethereum's decentralized network rather than on the company's servers. The votes are bundled with Ethereum microtransactions, so users can earn some Ethereum if their content is good and other users vote for it. It is "in a way, mining with your mind ." In the second and third quarters of this year, the company expects to open source the code powering AKASHA and run a community breakathon to find and fix the bugs that might have slipped by during development. The AKASHA team is aiming to launch the Ethereum main network in the fourth quarter of this year.
Blockchain startup Synereo is also creating a decentralized, next-generation social networking and content delivery platform. Recently, Synereo released Qrator, a tool that lets users monetize original content, get rewarded for sharing quality content with others and also discover the best content on the internet. Qrator is the first step toward Synereo's vision of a freer and fairer internet. The app will give users a look into the "Attention Economy" that puts creators and curators on top of the internet's "monetary food chain."
With Qrator, the company is looking to develop a cross-platform social graph, laying the groundwork for a fully-decentralized social content app based on blockchain and distributed storage technologies that will be built on the Qrator foundation later this year. Even as the world of social media is constantly evolving, blockchain technology is changing the world around us. Not just when it comes to financial transactions, but also by introducing decentralization that encourages free speech while doing away with the restrictions imposed by the social media giants.