Is Blockchain help to control Social Media?

Is Blockchain help to control Social Media?

Today new social media platforms, that use blockchain and apportioned ledger technology in an effort to build platforms where users can control their data, start to appear.

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The growing disappointment of the traditional social media platforms lead to the evolution in the industry’s startup ecosystem and the emergence of the next-generation social platforms.

Synereo is one of them, who presenting its apportioned tech stack and programming content delivery network at the COALA blockchain workshop in New York.

Dor Konforty, CEO of Synereo, thinks that this transition will happen in stages and the first step will be closely connected with open-source communities and decentralized technology.

Konforty and his team are building the platform not for their profit but for more user convenience. For example, the platform is peer-to-peer and gives users a chance to create plural identities for different groups. Konforty show this singularity of the platform saying that it would be nice for his friends to see the photos of last party, but that he might decide to shield those pictures from colleagues.

Another next-generation social platform is being developed by Steemit.

Ned Scott, CEO and founder of Steemit, said that its goal is to create a Reddit-like platform that “rewards positivity and accuracy over garbage content like some of the things you see on Facebook. On the other hand, we want to create the lowest barrier means to getting cryptocurrency.”

Gil Luria, head of technology research at Wedbush Securities, describe this direction with some words. He said :”The more people get disillusioned with how Facebook and Twitter manage their data and do not protect them and use their streams to advertise and tinker with…the more they’re going to want a platform not controlled by a single entity but instead distributed.”

He thinks that bitcoin community might be a market where such idea can be realized if replacing the incumbents will be embarrassing, because of some demand for this particularly in groups that are susceptible to privacy and commercialization of their information.

The altcoins

Practically, to reach this goal easily most industry startups are using forms of community currency.

Steemit palming to use three different types of currency: steem, the patented cryptocurrency; steem power, the digital currency which users get when they post content that then can be used for voting on other content; and steem dollars, the cryptocurrency pegged to the dollar.

The main problem with the movement of cryptocurrency is the difficulty in obtaining the tokens. But Steemit make it as simple as liking or creating a post.

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Synereo has it’s own amp cryptocurrency too.

Amp allows users to benefit from their complicity. Therefore, each user will have a network reputation determined by their location and the history of evaluation of their maintenance.

The better reputation user have the more spheres of the network its posts can reach. So user need to invest their amps into posts to reach the greatest spheres.

The user who see the posts will get amps for their regard and the number of received amps depends on the reputation of the user viewing the content with those users that have better reputations getting more amps. Today Synereo gives amp to anyone that facilitate to the project.

All in all Konforty mention that information transferring mechanism does not make sense, so blockchain is not the correct tool for most of Synereo’s features, but instead it is useful when working with eternal data.

So these platform have much in common but they use different strategies. For example, Steemit has been building its platform with the help of several investors, although the terms were not disclosed. And Synereo has begin its work through crowdsales of amps.

Reluctance from Average Joes

Also new blockchain-based companies use proprietary tokens to fund projects. It is

But, proprietary tokens are also how many new blockchain-based companies make initial money to fund projects. But if the developing company have a large share in that token, it could decide to cash out when the price rises, making substantial amounts of money and dreducing the value of everyday user’s tokens.

There are a lot of speculatorsin in the cryptocurrency community so there is a greate risk of pump and dumps.

Luria said “The target audience is likely to be sensitive and skeptical of native currencies.

There’s a high level of awareness to not being taken advantage of by having a cryptocurrency that’s goal is to enrich the founders.” Only a huge amount of transparency can neutralize this skepticism. The users need to know how much stake the founders of the companies have and how they will use them. It will help people to take part in the crowdfunding sense projects.

Steemit tries to reduce indeterminacy by promoting everyday users to use the steem power and steem dollars, instead of regular steem. The company has even coded the blockchain to give a half of steem power and the other half of steem dollars when awarding users for content.

Scott mention that, although tech-savvy users will be able to speculate on cryptocurrency exchange and deprive steem power into regular steem, but steam dollars can be cashed into fiat money through cryptocurrency exchanges as well.

Starting conversation

Generaly, these next-generation platforms show that social media platforms can be more user-centric and sustainable

Such companies as Facebook, Twitter, LinkedIn, Instagram and Snapchat have taken over social media long time ago. And of course it will be difficult to make people to use next-generation social media platforms but Konforty doesn’t think it’s impossible.

The current social networks on centralized entities, where user acts as a product. According to Synereo, more people will be join these new decentralized platforms when the open-source tech community starts to develop more significant applications and empowering tools.

Of course these new platforms have some negative connotations of cryptocurrencies but they are outweighed by their benefits over existing systems.

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