The advent of Web3 technology has forced Web2 companies to consider changing their existing products and services. Many leading brands are using Web3 technologies like NFT to promote their brands and show their commitment to new technologies. Social networking is another area where Web3 seems to have more influence.
Facebook has changed its name to Meta and has evolved from a social media platform to a portal into the future Metaverse. Meta-owned Instagram has announced that it will add NFT minting and trading services to the app. Another prominent social media platform, Reddit, became a trading hub for NFTs with 3 million wallet owners on the platform.
In addition to NFTs, social media giants like Twitter and Reddit have added support for users to tip cryptocurrency content creators. However, most social media platforms lack the inherent integration of cryptocurrencies.
Twitter is reportedly developing its own cryptocurrency wallet, and with Elon Musk's recent $44 billion purchase, many believe the social media platform will soon be able to integrate cryptocurrency wallets. However, recent reports suggest that Musk has temporarily put plans for a cryptocurrency wallet on hold.
Despite the current setbacks in cryptocurrency wallet integration, market participants expect more Web3-oriented services on social media platforms. Martin Hiesboeck, head of blockchain and cryptocurrency research at crypto trading platform Uphold, told Cointelegraph that Twitter already supports crypto, so adding crypto support was the next logical step:
Many in crypto are bracing to see how Elon Musk will impact the industry, and the response has been surprisingly upbeat. It is clear that Musk will drive the integration of digital assets and platforms. For example, many platforms will offer their own cryptocurrency wallets to keep transactions close to their ecosystem. Doing so on Twitter is a logical step for the social network, which already allows users to post crypto tips.
Musk's acquisition of Twitter made headlines not only because of the controversy that led to the deal's demise, but also because he took the social media platform private nearly 13 years after it went public. Now that Twitter is a private company, Musk has a greater say in the decision-making process, which many believe will help him bring more encryption and Web3-related services to the platform. Jack Jia, head of fintech firm Unlimint GateFi, told Cointelegraph that a significant number of Web2 platforms have integrated Web3 support in the last 18 months, and he expects Twitter to move in the same direction. Like Musk at the helm:
You can connect to your Instagram or Twitter with a no-deposit token like MetaMask and display your NFTs as a profile picture. Google has introduced a completely free Ethereum node service, just like Infura and Alchemy. Therefore, Coinbase and Revolut seem more similar today than different in terms of crypto functions and features. So Musk's Twitter will have a significant impact on cryptocurrency and may launch something like the Aaves Lens Protocol to decentralize Twitter and make it more resistant to censorship.
Web3 adoption is still long overdue and needs to become simpler and faster, and social media platforms can help billions of people use Web3 overnight. The success of Reddit NFT proves it. Max Kordek, CEO of the Lisk blockchain infrastructure platform, also said that Web3 is not a separate Internet ecosystem, but rather a transition, and these platforms are the most suitable for implementation.
Social networks have a history of holding back cryptocurrencies and Web3
Social networking platforms began as a means of communication with people around the world and became an integral part of the Internet in the Web2 ecosystem. However, over time, these social media platforms have also become centralized data hosts for millions of users that are trusted by major brands and companies to promote their products. The reliance of social media platforms on advertisers has led to bad practices on various social media platforms. These platforms have been found to sell sensitive user data to advertisers, while poor security measures have also led to data and privacy breaches. That's why Kayla Kroot, co-founder and chief designer of decentralized publishing protocol Koii Network, believes the crypto ambitions of these social media companies could hurt the industry in the long run.
While the integration of cryptocurrencies into any major technology platform can be seen as a positive step towards adoption, the entrenched capitalist tendencies of social media companies show that this will hurt the industry in the long run. If not handled correctly, this integration millions of potential users". A recent example is Twitter's controversial decision to require verified members to pay more than $8 a month for Twitter Blue.
Additionally, he noted the growing awareness of data autonomy and user privacy, particularly important areas in the blockchain community, noting that crypto-natives will see the integration of cryptocurrencies “into networks that actively violate basic social beliefs.” ". what is it: a money theft. Public perception could be even worse and completely undermine the perception of cryptocurrencies. Meta is a good example because it is difficult for a company to go from a Web2 foundation to a fully decentralized Web3 ecosystem. Cryptocurrency integrations that are profit-driven and out of step with the ethos of the cryptocurrency community will not only drive local crypto users away, but may also start fires against cryptocurrencies. At its core, blockchain technology facilitates distributed control and ownership of users, but the major social media platforms remain highly centralized and actively leverage user content to drive traffic and monetization.
Today, the most popular content creators on traditional social media platforms run the platform, but the platforms themselves benefit from ad revenue, not the creators. Most of these cryptocurrency integrations seem to work rather than actually work in the spirit of the new technology.
Tom McArdle, COO of decentralized messaging service Satellite.im, called Twitter's Web3 effort a classic Web3 wolf in sheep's clothing.
Cryptocurrency payment integration is just another revenue stream that has nothing to do with the social and ethical priorities that Web3 needs to stay ahead of the curve: transparency, user privacy, and data ownership.
On the one hand, the growing interest of Web2 social media platforms in integrating Web3 technologies is recognized as a step towards wider adoption. On the other hand, Web3 experts believe that the social media platform is only based on trends and not in the spirit of Web3, which could eventually lead to real cryptocurrency adoption, citing the example of Meta and its recent failure to transform into Web3.
