The Potential of Blockchain-Driven Decentralized Social Media in the Future

Despite the continued popularity of social media platforms, user dissatisfaction with large tech companies controlling their online social lives is growing, whether it be through strict content moderation or personal data collection. The many alternative applications recently launched reflect this dissatisfaction. A new research report explores the potential of cryptocurrency and Blockchain to power decentralized social media, an innovative social networking model that embodies the web3 vision of user autonomy. Although still in its early stages, "DeSoc" has already spawned multiple decentralized applications and attracted millions of users to its on-chain social networking concept.

Traditional web2 social media websites have changed the way people communicate by connecting users globally. Over half of the global population uses social media, and the most popular sites generate huge revenues. However, these platforms also bring typical "web2" problems: large tech companies ultimately own user-created content, content moderation teams can remove users from the platform, delete years of accumulated content, and immediately sever the connection between creators and 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, anonymity, and Decentralization governance) to address these issues. In short, DeSoc's goal is to ensure that users "establish direct relationships with their audience and with each other." Users can create accounts without providing personal information such as real names or email addresses. They can join specific platforms that match their interests while still using their decentralized accounts to freely communicate with users from various different websites. Users can decide their own content moderation policies. Users who wish to leave a certain website can easily migrate their account data (including usernames, posts, and follower lists) to other platforms.

Specifically, DeSoc applications offer several advantages for protecting privacy, supporting creators, and stimulating innovation, including:

• Freedom of Speech and Privacy Protection. Many DeSoc networks allow users to post using anonymous identities that cannot be associated with their real identity. Users are also less susceptible to content deletion and de-platforming, as there is no central entity exercising such control. Due to the immutable records on the Blockchain, DeSoc networks provide built-in tools for users who wish to verify their real identities across multiple platforms.

• Ownership and Monetization. Many DeSoc applications do not rely on advertising or data tracking, but rather issue native tokens to raise funds. They then reward user participation by distributing additional tokens for posting or engaging in conversations.

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

Some large technology companies have recently launched their own Weibo applications, attempting to leverage at least some of these advantages. Although the appearance and feel of these new applications are similar to traditional social media websites, they are reportedly compatible with decentralized social network protocols, allowing accounts to be hosted on independent servers. This decentralized structure enables users to better control their data and allows them to easily interact with other networks on the same protocol.

The DeSoc network faces specific challenges related to usability and content moderation. For example, their distributed nature may make it difficult for users to find specific friends and content. The sheer number of website names can make searching and navigation confusing. Sometimes, a site-by-site moderation approach can lead to de facto content moderation across the entire network. For these reasons, it is crucial for policymakers to understand the DeSoc network and the regulatory areas involved. Specifically, DeSoc applications raise concerns about the potential spread of misinformation and propaganda, as well as the responsibilities (if any) of decentralized protocols for illegal or harassing speech. They also lack regulatory clarity regarding data protection, consumer disclosure requirements, and the tax implications of token transactions.

Like all decentralized applications built on blockchain, the DeSoc application has the potential to increase freedom and opportunities globally by giving creators more ownership and control over their content and networks. Blockchain is a groundbreaking technology that enables people to share information directly in a peer-to-peer manner and has led to various applications benefiting from blockchain's efficiency, transparency, and accessibility. In the on-chain world, transparency and trust are built into the decentralized protocols themselves, and as technology advances, these protections will only continue to strengthen. Therefore, legislators and regulators focusing on social media should direct their attention to centralized participants that require additional transparency and information disclosure.