3. Transformation of NFT and SocialFi to Society

In the context of the Web3.0 era, DeFi powered by blockchain has more value manifestations. Among them, the emergence of NFT, SocialFi, and other concepts has had a significant impact on the current social network.

Web3.0 aims to improve the problems exposed by Web2.0 by inheriting from it. Ownership, platform benefit distribution, and private communication are the highlights of Web3.0 social networking. These assertions do not indicate that Web3.0 social applications will replace Web2.0 social applications, but rather that Web3.0 social applications will add encryption/blockchain technology to Web2.0 to address the latter's shortcomings. It will be a coexistence and mutual reference relationship. Web3.0 social applications currently include social graphs, Social-to-Earn projects, social media, metaverse social platforms, NFT social platforms, social infrastructure, and so on.

1）Ownership

Web3.0 social applications emphasize anti-censorship, user-controlled content, and content creators have ownership of their work. To achieve decentralized storage, content and data are directly uploaded to the chain, and the creator of the content can be traced via smart contracts, effectively protecting originality. The indestructible uniqueness of NFT, with the support of blockchain technology, lays the groundwork for meeting individuals' needs for social digital identities.

• Decentralized social identity can track users' historical behavior and build an on-chain credit system to support other applications.

• Different identity rights can be set for different social users using NFT, allowing meeting special compliance and access requirements.

2）Distribution of Platform Benefits

Web3.0 social applications have addressed the issue of unequal revenue distribution that exists in Web2.0 social applications. Web2.0 social applications generate revenue through content dissemination, with the platform receiving a significant portion of the revenue, whereas Web3.0 social applications distribute the majority of the revenue to users. Blockchain and NFT open up new possibilities for the social content creator economy. As the market recognizes the creator economy, there will be an increasing number of NFT creators in the future. When combined with the changes brought by the creator economy of NFT, the efficiency of communication and cooperation will be greatly improved, and the working form and benefit distribution model will be different from what is currently in place.

Web3.0 social applications can benefit both content creators and readers, and these benefits are mainly generated by the Social-to-Earn mechanism. Through the Social-to-Earn mechanism, creators post and get interactions from readers, and the platform rewards users with Token or NFT based on content dissemination. Furthermore, the subscription and paid content functions benefit creators and increase the number of followers. Web3.0 social applications will issue Token and NFT based on the reader's activity to reward, and readers can get rewards through engagement.

3）Communication Privacy

Users rely heavily on data as a source of information. End-to-end encryption technology is used in Web3.0 social applications to ensure that user communication is not interfered with or censored by third parties. Web3.0 social applications use encryption and blockchain technology to store users' information and data on the chain, and the exchanged content is encrypted.

4）SocialFi Brings Finance to Social Life

SocialFi's full name is Social Finance, which is a combination of the words social and finance. Social media behavior patterns include content creation, interaction, and interpersonal relationships. Finance, on the other hand, recognizes the value brought by these behaviors through specific channels to generate income.

​​The project SocialFi allows general participants to connect directly by issuing specific tokens. Participants gain more benefits from their social relationships and content creation. At the same time, the creators retain ownership of the content on the basis of decentralized blockchain technology. Users' content can be directly rewarded by other followers, and interaction with the followers can also bring token rewards to creators.

The above series of ecological interactions may break the Web2.0 situation in which Internet companies monopolize most resources, control advertising commission income, and creators are restricted by companies. SocialFi will be able to assist users in three different ways:

• Data Ownership: On traditional social platforms, all social data of users is stored in the form of fields on the platform’s server, and the data is owned by the platform. The non-tamperable modification of SocialFi is helpful to solve the ownership problem of user data.

• Benefit Distribution: There is an imbalance in the distribution of benefits between users and the platform under the algorithmic mechanism of traditional social platforms, which is not conducive to protecting users' rights and interests. SocialFi is a platform that allows users to earn money by monetizing their social influence without the issue of third-party commissions.

• Privacy and Security: In traditional social networking, all user accounts are authenticated by real names, and the information of users is stored in the platform's backstage, making it easy for information leakage to occur. SocialFi is built on blockchain technology, and users' identities are anonymous to protect their privacy.