Hello My Friends; I am here with a new article. The subject of this article; I would like to talk about Social Finance, which I have started to hear frequently lately, and briefly SocialFi. You've heard it too; friend.tech, post.tech platforms... Since access to these platforms is with a reference code, people are looking for reference codes in chat rooms... Let's see what SocialFi is...? Does it have a future...? Let's examine these...

If you're ready, let's start …

First of all, what is SocialFi ... ?

SocialFi; It allows users to earn profit while participating in decentralized social interactions, meaning they can earn income and socialize at the same time.

SocialFi

Why is SocialFi necessary … ?

Today, users' personal information is monopolized and controlled by internet giants, trapping users in information bubbles through algorithmic mechanisms. Commercialized viral advertising and marketing fills the internet with eye-catching and sensational content, fueling anxiety and preventing the creation of deep and meaningful content. Internet giants make profits from user data and creators' content, but do not distribute these profits fairly between creators and users.
Moreover, social interaction continues to be a basic need today, as in every era. People are social beings by nature and have engaged in social behavior as long as they have existed.
At this point, SocialFi's decentralization, openness and user control make it popular.

Let's take a look at its other features...

User Privacy and Security; In traditional social media networks, different platforms require users to register and share personal information. This leads to information leaks. SocialFi enables content sharing and transfer between different platforms while protecting the privacy and security of user data.

Data Ownership; Traditional social media platforms collect, store and use user data. This data belongs to the platforms themselves. Decentralized social platforms put data ownership under the control of users. Platforms need user authorization and require permission to use data.

Incentive Mechanisms; Traditional media platforms rely on advertising for profitability, making it difficult for regular users to generate income. SocialFi links social interaction with economic incentives, allowing users to earn corresponding rewards through daily social interactions.

Problems with SocialFi ...

User Habits; Users are accustomed to using traditional social media platforms such as Twitter. This makes the development and transition of new usage habits difficult. Additionally, compared to traditional social media with real-name systems, the anonymity of decentralized social media may reduce users' sense of social belonging. Additionally, many Web 3.0 social products are not particularly user-friendly, making them less accessible to users.

Lack of Advanced Protocol or Product; The SocialFi space is currently in its early exploration phase and lacks advanced or popular products in the social protocols space. In SocialFi projects, the number of daily active users is only in the thousands. This number is quite low compared to traditional social products.

Small User Base; The relatively low total number of active addresses in the blockchain space leads to a small target user base for SocialFi. This number lags significantly behind the user volume typically associated with extremely popular apps.

Unreasonable Value Capture; Currently, the value capture mechanisms in SocialFi projects have not formed a well-functioning closed loop. Some project token incentive algorithms are counterintuitive, leading to subpar content production and social interactions.

Underdeveloped Business Model; The incentives offered by SocialFi platforms are insufficient to meet the livelihood needs of content producers and therefore cannot provide sustainable motivation for continuous content production.

friend.tech

Opportunities and Challenges of SocialFi ...

In today's internet and cryptocurrency environment, the value of social impact is constantly gaining importance. For example, Elon Musk has brought Dogecoin among the top 10 cryptocurrencies with his constant Twitter posts.

Additionally, various meme coins have attracted attention through the creation and popularization of community culture, and market trends have been directly influenced by community enthusiasm. This illustrates how the power of individuals and communities can create significant wealth effects. Therefore, we believe that the combination of social and financial features in SocialFi has the potential to lead to a new trend. With the continuous development of basic technology, explosive growth can be achieved in the future.

However, the development of SocialFi also faces numerous challenges. One of these is to create sensible economic incentives for content production. A common problem with current decentralized social media platforms on the market is the monopoly of influence. Accounts that log in early or have significant influence tend to monopolize attention on the platform, making it difficult for new users with less influence to gain visibility.

Additionally, SocialFi must address regulatory concerns. Striking a balance between content moderation, freedom of expression, and user rights will be a significant challenge for all social projects, including SocialFi.

post.tech

My Last Words; Currently, the SocialFi trend, which started with friend.tech in the cryptocurrency markets, is continued by post.tech in the Arbitrum network and Stars arena in the AVAX network. In addition, SocialFi projects in beta version took advantage of this trend and started to implement projects. Most of them want you to connect with your Twitter (New Name X) account. They want you to post. By the way, if you are careful, your account may be suspended by Twitter. My friends, what you need to pay attention to here is that people who access your accounts can take over your efforts and earnings. I would like to finish my article by talking about the incident I experienced. I will briefly tell you about my experiences with SocialFi platform TAKI, which I discovered about a year ago. You also create content on this platform and receive tokens from users. There is no profit from buying and selling transactions here. But as you create content, you are given daily TAKI tokens according to your level. Let's come to the situation I am experiencing; When your earnings increase and you start taking TAKI tokens to your wallet to evaluate them and start selling your own tokens, they deactivate the account and confiscate your TAKI tokens. From where … ? If this is an environment of financial gain; I don't understand why people's accounts are disabled when there is no limit on token sales. You set your rules and controls, limit and block any transactions made. It is not ethical to do this after the transactions are completed. For this reason, I recommend that you stay away from projects that do not have clear rules, such as TAKI.

As I always say; Listen to everyone, decide for yourself... Good Luck...

Luck does not help those who do not want to work. Sophocles