The Future Potential of Blockchain-Driven Decentralization in Social Media

Social media platforms remain highly popular, but users are increasingly dissatisfied with the way large companies control their online social lives, whether it be through content moderation or personal data collection. The many alternative applications recently launched reflect this dissatisfaction. A new guide explores the potential of cryptocurrency and Blockchain to empower decentralized social media, which is an innovative model of social networking that embodies the web3 vision of users owning the internet. Although still in its early stages, "DeSoc" has already spawned numerous decentralized applications and attracted millions of users to its vision of on-chain social networking.

Traditional web2 social media sites have changed the way people communicate by connecting users globally. More than half of the world's population uses social media, and the most popular platforms generate huge revenues. However, these sites also bring typical "web2" issues: large tech companies ultimately own user-generated content, content moderation teams can remove users from the platform, delete years of content, and immediately sever the link between creators and fans. 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, pseudonyms, and Decentralization governance) to address these issues. In short, DeSoc aims to ensure that users "have direct relationships with their audience and with each other." Users can create accounts without providing personal information. They can join specific platforms that align with their interests while still being able to freely communicate with users from different websites using their decentralized accounts. Users can determine their own content moderation policies. Users who wish to leave a site can easily migrate their account data (including usernames, posts, and follower lists) to other sites.

Specifically, DeSoc applications offer several advantages that can protect privacy, support creators, and promote innovation, including:

• Freedom of speech and privacy. Many DeSoc networks allow users to post under pseudonyms with identities that cannot be associated with their real names. Users are less likely to be affected by content deletion and de-platforming, as there is no central entity exercising such control. Because records on the Blockchain are immutable, 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 instead 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 developers have free access to modify and build upon existing code. This encourages collaboration and accelerates innovation.

A large technology company recently launched its own Weibo application, attempting to leverage at least some of these advantages. Although the application looks and feels similar to traditional social media sites, the company states that it will be compatible with ActivityPub, which is 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.

The DeSoc network faces specific challenges related to usability and content moderation. For example, its distributed nature may make it difficult for users to find specific friends and content. The sheer number of website names can make searching and navigating confusing. At times, 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 it involves. In particular, DeSoc applications raise concerns about the potential spread of misinformation and propaganda, as well as the liability of decentralized protocols for illegal or harassing speech (if any). They also lack regulatory clarity regarding data protection and consumer disclosure requirements, as well as the tax implications of token transactions.

Like all decentralized applications built on Blockchain, the DeSoc application has the potential to increase global freedom and opportunity 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 it brings various use cases that benefit from Blockchain's efficiency, transparency, and accessibility. In the on-chain world, transparency and trust are built into the decentralized protocols themselves, and these protections only strengthen as technology evolves. Therefore, lawmakers and regulators focused on social media should direct their attention to centralized participants that require additional transparency and information disclosure.