The Application Prospects of Blockchain Technology in Decentralized Social Media

Social media platforms remain widely popular, but users are increasingly dissatisfied with the way large tech companies control their online social lives. This dissatisfaction has led to the emergence of multiple alternative applications. A new research report explores the potential of cryptocurrency and Blockchain to power decentralized social media (DeSoc), an innovative social networking model that embodies the web3 vision of user ownership of the internet. Although still in its early stages, DeSoc has already spawned numerous decentralized applications and attracted millions of users to its on-chain social network concept.

Traditional web2 social media sites have fundamentally changed the way people communicate and connected users from around the globe. Currently, more than half of the world's population uses social media, with the most popular platforms generating billions of dollars in revenue. However, these sites 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 aims to leverage Blockchain technology and other web3 features (such as tokens, anonymous identities, and Decentralization governance) to address these issues. In short, DeSoc's goal is to ensure users "establish direct relationships with the audience and with each other." Users can create accounts without providing personal information, join specific platforms that align with their interests, and still communicate freely with users across multiple different websites using their decentralized accounts. Users can independently decide on content review policies. Users wishing to leave a website can easily migrate their account data (including usernames, posts, and follower lists) to other platforms.

DeSoc applications offer several advantages, including privacy protection, support for creators, and the promotion of innovation, specifically including:

1. Freedom of speech and privacy protection: Many DeSoc networks allow users to post using anonymous identities that cannot be associated with their real identities. Users are less affected by content deletion and platform bans, as there is no central entity exercising this 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.

2. Ownership and Monetization: Many DeSoc applications do not rely on advertising or data tracking, but instead issue native tokens to raise funds. They reward user participation by distributing additional tokens for posting or participating in discussions.

3. Innovation: Most decentralized applications are built using open-source code, which means developers can access, modify, and build upon existing code without restrictions. This encourages collaboration and accelerates innovation.

Recently, a social media giant launched its own Weibo application, attempting to leverage at least some of these advantages. Although the application's appearance and functionality are similar to traditional social media websites, it is said to 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 large number of websites, searching and navigating can be confusing. Sometimes, the 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 have raised concerns about the potential spread of misinformation and propaganda, as well as the accountability of decentralized protocols regarding illegal or harassing speech. They also lack clarity on the application of data protection and consumer disclosure requirements, as well as the regulatory implications of token trading taxation.

Like all decentralized applications built on Blockchain, DeSoc applications have the potential to increase freedom and opportunities globally by empowering creators with greater ownership and control over their content and networks. Blockchain is a breakthrough technology that enables direct peer-to-peer information sharing and has led to various application scenarios benefiting from its efficiency, transparency, and accessibility. In the on-chain world, transparency and trust are inherently built into the Decentralization protocols themselves, and these safeguards will only continue to strengthen with the advancement of technology. Therefore, legislators and regulators focusing on social media should concentrate their efforts on centralized participants that require additional transparency and information disclosure.