Exploring the Current Status and Future Development of Web3.0 Social Products

With the continuous popularization of Web3.0 social products, the number of users continues to grow. However, after the airdrop ends, the daily active user count often experiences a sharp decline. How can project vitality be maintained? Can tokenization really incentivize user participation? How can the contradiction between content moderation and decentralized social networking be balanced? These are all questions that entrepreneurs in the Web3.0 social field need to consider.

This article will start from the essence of social interaction to explore the significance, classification characteristics, existing problems, and optimization directions of Web3.0 social products, helping readers better understand the current situation and future development of Web3.0 social products.

The essence of social interaction is "the relationship between people + interaction", which can be broadly divided into interactions among acquaintances and interest-based interactions. However, the total number of crypto natives in Web3.0 is limited, so products focusing on interactions among acquaintances may be premature. Interest-based interactions require the creation of new relationships in new scenarios; simply replicating and transferring social relationships is not feasible.

Reasons Why Web3.0 Social Products Are Receiving Attention

It is predicted that by 2027, the number of global social media users will reach nearly 6 billion. Currently, the average internet user spends 144 minutes a day on social media and instant messaging applications. Although traditional centralized social platforms have a large user base, they also face issues such as data breaches, content censorship, and algorithmic bias.

Web3.0 social products are based on blockchain technology, enabling a decentralized social experience that ensures user data privacy and security. At the same time, they can eliminate censorship and algorithmic bias from centralized platforms, giving original content creators more autonomy. Therefore, Web3.0 social products are receiving considerable attention and may become an important trend in the future development of social media.

Currently, Facebook remains the dominant player in the social media field, with over 2.9 billion monthly active users. Meta Platforms has four major social media platforms, each with over 1 billion monthly active users. These large centralized participants have successfully monopolized the entire industry. However, the emergence of SocialFi may break this situation.

SocialFi aims to address the shortcomings of traditional social platforms. Based on principles of fairness and decentralization, blockchain social media applications experienced rapid growth at the end of 2022. This is evident from the sharp increase in the total number of active wallet addresses for social DApps smart contracts. The new trend of SocialFi could fundamentally change the landscape of the social media industry.

Common Categories and Features of Web3.0 Social Products

The current popular social and DID projects mainly include infrastructure, middleware, applications, and tools. The SocialFi sector is gradually growing, with many projects based on social tokens, integrating DeFi elements, and continuously undergoing technological updates and upgrades.

According to the issuance projects of Social tokens, they can be divided into the following categories:

1. Personal Tokens: Symbols representing status or connection engagement, early creators or entrepreneurs can receive economic returns. Typical projects include RAC, ROLL, etc.

2. Community Tokens: Mainly issued and controlled by the community, usually governed by a DAO. Used to incentivize community members to contribute. Typical examples include WHALE, Mirror, FWB, etc.

3. Minting and distributing platform tokens: Represents control tokens for the platform, making it easier for creators to issue and manage tokenized communities. Typical projects include Chilliz, RALLY, BitClout, etc.

4. Tools: For example, Mask Network connects Web2.0 and Web3.0 in a "plug-in" manner, allowing users to seamlessly send encrypted messages, cryptocurrencies, and DApps on existing social networks.

Current Issues with Web3.0 Social Platforms

1. High cost of data storage: Decentralized storage requires more computing resources and storage space. Some projects are exploring solutions such as increasing block size, sharding for parallel processing, or storing part of the data off-chain.

2. Insufficient network effects: The user base and activity level are low, making it difficult to form a strong social network effect. Attracting Web2.0 users to use SocialFi applications still faces challenges.

3. Difficulties in Cross-Platform Interaction: Differences in data formats, encryption methods, and validation rules between different DeSoc protocols hinder the realization of cross-platform interaction.

4. Sustainable Economic Model: Currently, value is mainly obtained through social behavior rewards and content creation incentives. However, high-quality content creation and an objective and完善的审核机制仍是发展瓶颈.

5. Business expansion is highly competitive: leading influencers have become the target of many competitors. SocialFi aims to create a self-consistent economic system by tokenizing social influence.

Optimizing the entry direction of social products

In 2023, SocialFi will still be one of the hot topics of the next cycle. Middleware and protocols are continuously innovating, making social applications more stable, secure, fast, and scalable. Decentralized social media protocols and middleware are receiving increasing attention, such as Nostr, Farcaster, and LensProtocol.

Privacy protection will become an important area of innovation. zk technology can be used to enhance the security and privacy of lending transactions, protecting user transaction data and lender privacy. However, it is necessary to balance the conflict between anonymity and establishing social status.

Web3.0 social products need to continuously create new interaction scenarios and establish new types of social relationships among users to break social fatigue. In the future, it is also necessary to explore more innovative interaction methods and social scenarios to attract more users to join. At the same time, addressing issues related to user experience, scalability, and privacy protection is also crucial. With technological advancements, Web3.0 social products are expected to become more mature and widespread.