SocialFi is a combination of Social and Finance, gaining more benefits through the financialization and tokenization of social influence.
To understand it better, let’s take a look at GameFi. GameFi is a new type of gameplay that brings decentralized finance (DeFi) into blockchain games (also known as NFT games or crypto games) where players can earn as they play.
This is one of the most important features of GameFi: play to earn (P2E). Alex Infinity is one of the most famous blockchain games, whose daily revenue even exceeds that of the popular mobile game Strike of Kings.
DeFi builds a completely self-consistent ecosystem for blockchain games, with players and developers sharing the profits of the ecosystem. The same is true with SocialFi, which is essentially a personal value statement.
SocialFi also creates a self-consistent ecosystem for users, where everyone can gain by demonstrating their personal values.
In fact, there were SocialFi projects launched as early as 2017, but many failed to take off due to a lack of market focus and technology imperfections. At the time, the concept of DeFi was not well understood, so the potential of SocialFi was not appreciated by the users.
As DeFi continues to evolve, more market hotspots are being explored and crypto users have a clearer and deeper understanding of Web3.0 and decentralization, we are now able to take a broader view of where SocialFi is going and build more imaginative protocols.
What is the ecosystem valuation of SocialFi?
The value of GameFi is found by the “play to earn” model, where players from all over the world can create and capture value by playing games.
The value SocialFi contain is hidden in every interaction, and we need to capture the value of SocialFi by demonstrating the personal value of content creators.
SocialFi wants to tokenize its social influence into a consistent ecosystem that will help more people with different levels of social influence reap the benefits of their social influence.
Therefore, the value of SocialFi depends on its granularity – What SocialFi presents is the value of the individual.
Only by enabling the creative content and social influence generated by individuals, more individuals can benefit from the creators’ ecosystem, and SocialFi’s value system can grow and thrive.
Decentralized social network platform: Rootmeta
Rootmeta is a portal to a decentralized social world built on top of web 3.0, allowing users to assess high-quality content, community, and infinite capabilities of blockchain. A reward and credit system that incentivizes users to add their accomplishments and endorse those of others.
Rootmeta is a life-sharing community where everyone creates high-quality content, and the community becomes interesting because of your presence.
Solutions by Rootmeta: In the Web 2.0 era, user data is controlled by main internet service providers, such as Meta(formerly Facebook), Discord, and Twitter. And these centralized big companies can take profits from the underlying user data with little benefit to the users.
Therefore, Rootmeta is addressing some of the drawbacks of traditional social networking:
Resolve data ownership issues: In traditional social network platforms, user data is stored on the operator’s server in the form of fields, and the data belongs to the platform. Rootmeta is based on blockchain technology, and its immutable data features can help solve the problem of verifying user data permissions.
Address benefit-sharing issues: Under the algorithm mechanism of traditional social platforms, there is an unbalanced distribution of benefits between users and service providers in terms of traffic realization, which is not conducive to the protection of users’ rights and interests. Rootmeta allows users to monetize their social influence without the need for third-party commissions.
Address privacy and security issues: In traditional social networking, all account registration requires users’ real identity information, and the information stored in the backend of operators is easy to leak.
Rootmeta is based on blockchain technology, and the anonymity of user identity information helps protect their data privacy and security.
Solve credit problems: In traditional social networking, all registration requires users’ real identity information, and the information stored in the background of operators is easy to leak.
Get started with Web 3.0
While social tokens have grown recently, with many of them having seen a rise of more than 100%, the share of SocialFi in the overall crypto market remains small.
So many would ignore the importance of SocialFi on the entire crypto ecosystem.
Web3.0 embodies the value of personal data sovereignty, which coincides with Rootmeta’s philosophy. So we, Rootmeta, are acting as the path to Web3.0, and at least creators and influencers from web 2.0 can see the future of Web3.0 ahead of time.
However, what’s more important for Rootmeta is to build the ecosystem for Web3.0.
To better develop Web3.0, we will bring as many as users from web2.0. The new decentralized social network, Rootmeta, will become the driver of the development of Web3.0 and promote the massive application of Web3.0.
Or we can boost more focus for a short period of time. SocialFi could be the next big thing after Meta, GameFi, and NFT due to the industry’s need for hot spots. And Rootmeta is ready for that!