Skip to content
Home » SocialFi: The new name for mass adoption

SocialFi: The new name for mass adoption

For the crypto and blockchain industries, mass adoption has been a goal since inception. Nearly all businesses in this sector strive for mass adoption in some form or another. However, there is clearly still much to do. There are just over 300,000,000 crypto users and 70,000,000 blockchain wallet users. As deterrents to mass adoption, factors like low government recognition, lack understanding and high-risk factors were cited. This long list shows that the main deterrent remains the absence of a compelling use case.
Today’s blockchain industry is full of incredible innovation. However, these innovations tend to focus on short-term gains and are not strong enough to convince people to switch from centralized systems.

The early 2000s saw the internet in a similar scenario. Many potentialities, but little value. With the introduction of social media in 2004, especially Facebook, the dynamic changed. It saw a huge influx of users from all over the world who saw it as one among mankind’s most important innovations.

It is still social media, even after twenty years, that can propel the blockchain-space to mass adoption.
Facebook to Meta: The beginning for the big picture

Facebook will have more than 2.89 million users by 2021. Facebook, which was once the dominant social media platform in Web 2, has made significant strides towards Web 3. The company now calls themselves Meta and is currently working on building the world’s largest social media metaverse. Nearly 3 billion people around the world could be introduced to blockchain and cryptocurrency if this happens alongside Facebook’s cryptocurrency, Diem.

The operation of the metaverse depends on blockchain. NFTs, digital assets that can be converted to digital currency, will determine who owns the metaverse. Indirectly, Facebook’s shift to the Meta is a blessing for the blockchain industry.

Twitter plans to integrate cryptocurrencies in its platform with features like Bitcoin tipping and creators. Bitcoin tipping seems like mass adoption, given Twitter’s huge user base of 192 millions daily active users. Reddit allegedly plans to establish an NFT market in the near future. There are also rumors that the platform will convert people’s Karma points into cryptocurrency tokens. One reason why a large portion of the global population might embrace crypto technology is because the major social networks around the globe are making strides to include blockchain technology in their core.
SocialFi: The new name in mass adoption

Facebook, Instagram, Twitter and YouTube have become synonymous with social media. However, this may soon change. Blockchain technology is creating a new breed of social media networks that can be larger and more powerful than ever before. These new networks give superpowers to existing social models. Data scams and uninformed algorithm changes could be gone, as well as unnecessary content censorship. This is because the new social networks are owned by and managed by the community.

These networks also have the potential for social finance (SocialFi). These networks allow users to have tokenized social influence and can provide monetary benefits for those who are influential.

This is a great use of blockchain technology. It could lead to mass adoption.
Capital and innovation are key to mass adoption

Venture capital funding has increased dramatically in recent years, with major social networks including blockchain technology and SocialFi projects gaining prominence. SocialFi was highlighted as one of the key areas of interest in Binance Smart Chain’s recently announced $500m investment program. Solana Ventures, along with Reddit co-founder Alexis Ohanian announced a $100m funding for web3 social startup in association.

Paradigm Venture Capital announced a $2.5 Billion funding for web3 startups. This could make it the largest ever crypto fund. It appears as though the venture capital markets recognize the potential of blockchain technology, and are now investing money in promising SociaFi project.

The crypto and Blockchain industries are working full-steam to develop the next generation of Crypto social network.
Create universal appeal

Mass adoption is one thing that is much more difficult than it seems. It can be quite difficult to convince a large portion of the population that a new technology is worth their time. Social media is a great place to start. Social media networks are widely used and can be used to promote mass adoption.