How Blockchain Technology is Altering the Social Media Ecosystem
The term Blockchain has become a prevalent part of human vocabulary over the previous year. It initially started as the tech behind cryptocurrency transfers and exchanges but is now spreading into thousands of other sectors.
It’s safe and reliable nature makes it a strong way for businesses to record financial transactions and provide a more equal playing field for buyers and sellers.
But how does this equate into the fast-changing and addictive world of social media? Can blockchain’s manipulative opportunities work for social media? How does blockchain work for social media?
Think of the first thing you do in the morning when your alarm wakes you up. If you automatically reach your phone and scroll through your latest notifications, you’re not alone. For most individuals, this is the go-to-morning activity.
Our thumbs wander to Facebook or Instagram or Twitter icon before we even opened our eyes appropriately. And, fortunately, for those of us who’s first moments of the day are dictated by who said what to us where, most social media channels are free to use.
Let me rephrase this: they are free to use in the monetary sense. We pay for them in other ways; with our data and, eventually, with our identities. That’s where it all receives a little Black Mirror.
What about Blockchain?
Blockchain can be seen as an extremely secure digital ledger (think spreadsheet) that lives on a global computer network and allows peer-to-peer transactions to take place. This network enables a group of connected computers to keep a single ledger instead of getting the data owned by one manager.
There are a variety of blockchain-based systems on the market today. Most frequently, these systems process data by placing it into groups called “blocks” and linking them in a chronological order to form what is called a “chain” that produces a blockchain. Blockchain utilizes mathematical functionalities and code to approve and check transactions before new data can be added to the ledger. Each piece of information must respond to a complicated mathematical problem generated by a cryptographic hash function (a mathematical algorithm) before it can be added. If the answer is right, the data becomes a component of the blockchain; if the answer is inaccurate, a consensus is reached before the data is recorded.
How Blockchain Will Impact Social Media
Blockchain technology continues to impact many industries and social media is no exception.
Whether you are an online social media marketer or a company owner who uses social media to reach customers, it is essential that you understand that social media is currently undergoing a drastic change. Blockchain technology is presently disrupting multiple sectors, and social media is likely to encounter the ramifications of this disruption. Businesses using social media to create their brands, such as Twitter and Facebook, will soon understand that all the investment may have been for nothing. When blockchain technology changes, there will be an undeniable upheaval on the platforms used by consumers and businesses along with the means of networking.
Trends and Effects Using Blockchain on Social Media
If you want to prepare your business for future blockchain-enabled social network marketing, there are certain trends that you need to follow carefully.
Here’s a little elaboration of the current trends. These trends show how blockchain is changing social media:
An Upsurge in Verified Online Identities
Rather than marketing their product in social media’s ‘black hole’ and becoming susceptible to fraudulent pay per click or PPC ad impressions, business executives are attracted towards the blockchain technology and smart contracts which enables them to connect with customers with verified identities.
Compelling Amalgamation of Cryptocurrencies and Blockchain Technology
Blockchain technology and cryptocurrency are the future of the social media ecosystem. When a decentralized platform becomes mainstream, social media consumers have the option of platforms from which to network. The potential to earn small amounts of cryptocurrency for online operations may attract users to platforms where contributions to platform development are rewarded. For example, if you consider the amount of time you invest in current social media platforms, then imagine if each post you make will earn you a small amount of bitcoin. This kind of coded social media network is fascinating.
Verification of Virtual Marketplace
Online fraud is so prevalent that verification has become a need now, whether it is the identity verification or market place verification. Virtual marketplaces are areas that are used to grow specific business needs and to interact with like-minded companies or vendors. As blockchain technology becomes more prominent and mainstream, marketplace verification will improve the growth potential of a company. The ability to market verified vendors or businesses will make marketing simpler as they will understand what you are selling; thus, decreasing all marketing attempts while improving ROI time.
Cryptocurrency and Blockchain Collectibles Leverage the Future of Social Media
We are witnessing an increasing interest in the cryptocurrency collectible industry, with influencers raising millions of dollars for investor funding. Although for some people it is only a child’s play. But the reality is that cryptocurrency collectible businesses are planning to introduce games on platforms such as Android or iOS. Once submarkets are constructed on top of the crypto-collectible game, the lure of this innovation will become more defined.
Blockchain Technology Smartly Tackles Fake Content
If we talk about today’s social media scenarios, it’s simple for posts to get flooded with fake content from spambots. Blockchain technology with its smart contracts can affect the use of fake content. All the future social media networks will have the latest content distribution based on verified information and traceable data spread.
We cannot predict with certainty that blockchain will outdo the current social system, we understand that its uses are vast and useful. If we arrive at a full blockchain-based social mechanism, we will still face difficulties. As consumers, however, we will have more control over our personal data, content, and access to accurate information.