Exploring the Exciting Use Cases of Decentralized Finance (DeFi) – Part 3
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In articles about DeFi, FinFan shares the definition of DeFi and use cases of it. In this article, let’s find out with FinFan the third application of DeFi in life - SocialFi.
Definition of SocialFi
SocialFi is a feature that combines DeFi and traditional social network development. Imagine you are surfing Facebook, watching YouTube, or studying an online course on the Web2 platform.
Facebook, YouTube, or those online social learning networking sites will bring you interesting experiences and there will be a way to share profits with the content creators as well as those online courses. In the DeFi world, you can also do the above tasks with projects that apply the SocialFi format.
The big weakness of large social networking sites and projects created with Web 2.0 is its centralization. This means that the data will be provided to the companies or creators of those platforms.
SocialFi projects that apply a decentralized mechanism will help you solve the above problems. With a decentralized mechanism, the data of both users and content creators will be guaranteed to be secure and have better control over their data.
Typically, monetization is done in cryptocurrency, while identity management and digital ownership will be further developed with the adoption of NFT technology.
SocialFi projects are typically developed as decentralized autonomous organizations (DAOs) and are designed to prevent centralized censorship decisions. As blockchain technology has advanced dramatically over the past few years, the SocialFi infrastructure can accommodate the processing capacity required for social interactions.
Top 5 SocialFi projects in Vietnam
CyberConnect (CYBER)
CyberConnect is Web3's largest and earliest decentralized social network, enabling developers to create social applications and allowing users to own their digital identities, content, connections and revenue channels. their entry.
Three user-focused features of the project:
- CyberAccount: these are smart contracts that represent a user's digital identity.
- CyberConnect Social Graph: linking your digital identities, data, content, and friends.
- CyberWallet: a smart contract wallet that securely stores your digital assets and provides an easy Web3 onboarding experience.
Open Campus (EDU)
Open Campus is an educational project in which content creators create their own courses on a variety of knowledge areas. However, instead of being implemented on a Web 2.0 platform like Edumall, Topica, Unica, Udemy, etc., these courses will be encoded as NFTs.
Then content creators can make money by selling these NFTs to co-publishers responsible for promoting the courses to final learners.
Lens Protocol & Lenster
Lens Protocol is a potential blockchain social network product, attracting attention from the community when its founder is Stani Kulechov, who is also the founder of the leading money lending platform Aave (AAVE) on Ethereum. .
Developed on the Polygon blockchain platform, Lens Protocol is a protocol that helps establish social networks (social graphs) between content creators and their communities.
With Lens Protocol, users own all of their personal information without having to share it with any third party, and at the same time overcome the disadvantages of Web2 social networks when all data and connections are centralized storage and not owned by the user.
Decentralized Social (DESO)
Decentralized Social (DESO) is a layer-1 blockchain developed for decentralized social applications. Decentralized Social has built a system where everyone is responsible instead of middlemen. In this new model, users decide what content is distributed and how it is used.
If Cos.tv operates as a video social network platform, DESO operates as a Facebook social network. Like Cos.tv, content creators earn money based on members' interactions on the DESO platform.
DESO tokens can also be used to incentivize positive behavior and access to special features on social networks. For example, users can use DESO tokens to unlock the poll creation feature after receiving enough votes from other members on the network.
Each activity on the network requires a fee in DESO tokens, and the more times the activity is performed, the higher the fee required. However, 25% of the fee amount will be distributed to DESO token holders through a smart contract, to encourage users to continue using and growing the Decentralized Social community.
Audius (AUDIO)
*Audius is a new music streaming platform built on public blockchain infrastructure and decentralized technology. With support for AUDIO tokens, third-party stablecoins, and artist tokens, Audius provides an efficient token economy for artists to distribute their music and receive payments directly from their fans.
Additionally, Audius provides a decentralized storage and ledger solution for sharing audio and metadata. With a unique tracking encryption scheme, it also allows unlocking user-specific proxy re-encryption keys for accessing content. Furthermore, with the discovery protocol, users can query metadata efficiently.
Audius' decentralized governance protocol allows artists, node operators, and fans to individually and collectively make decisions on protocol changes and upgrades.*