The Potential of Blockchain Empowering Decentralization in Social Media

In recent years, while social media platforms remain highly popular, users are increasingly dissatisfied with the way large tech companies control their online social lives. This dissatisfaction is directed both at strict content regulation and the collection and use of personal data. The launch of several alternative applications recently reflects this discontent. A new research report explores the potential of cryptocurrency and Blockchain technology in promoting the development of decentralized social media, a model of innovative social networking that embodies the Web3 vision of a user-led internet. Although still in its early stages, Decentralized Social Media (DeSoc) has already spawned numerous applications and attracted millions of users interested in its Blockchain-based social network concept.

Traditional web2 social media platforms have changed the way people communicate by connecting users worldwide. Over half of the global population uses social media, and the most popular platforms generate enormous revenue. However, these platforms also bring typical "web2" issues: large tech companies ultimately own user-generated content, content moderation teams can remove users from the platform at any time, delete years of accumulated content, and immediately sever the connection between creators and their fans. These companies also profit by tracking and selling user data, while the closed systems hinder innovation from third-party developers.

The DeSoc network has the potential to leverage Blockchain technology and other web3 features (such as tokens, pseudonyms, and Decentralization governance) to address these issues. In short, DeSoc's goal is to ensure that users "establish direct relationships with their audience and with each other." Users can create accounts without providing personal information, can join specific platforms that align with their interests, while maintaining the ability to freely communicate with users across different sites. Users can decide their content moderation strategies, and when they wish to leave a site, they can easily migrate their account data (including usernames, posts, and follower lists) to other platforms.

The DeSoc application offers multiple advantages that help protect privacy, support creators, and promote innovation:

1. Freedom of speech and privacy: Many DeSoc networks allow users to post under pseudonyms that cannot be linked to their real identities. With no central entity in control, users face a lower risk of content removal and being banned from the platform. The immutable records on the blockchain provide built-in tools for users looking to verify their identities across multiple platforms.

2. Ownership and Monetization: Most DeSoc applications do not rely on advertising or data tracking, but instead issue native tokens to raise funds. They incentivize user participation by distributing additional tokens for posting or engaging in discussions.

3. Innovation: Most decentralized applications are built using open-source code, allowing developers to freely access, modify, and develop based on existing code. This approach encourages collaboration and accelerates innovation.

Some mainstream social media platforms have also begun to experiment with partial decentralization features. For example, a major tech company's recently launched Weibo application stated that it would be compatible with ActivityPub, a decentralized social networking protocol that allows accounts to be hosted on independent servers. This decentralized structure enables users to have better control over their data and facilitates interaction with other networks using the same protocol.

However, the DeSoc network also faces some unique challenges, particularly in terms of usability and content moderation. For example, its decentralized nature may make it difficult for users to find specific friends and content. The large number of website names could complicate search and navigation. At times, a site-by-site moderation approach may lead to de facto content moderation across the entire network.

Given these characteristics, it is crucial for policymakers to understand the DeSoc network and the regulatory areas involved. Specifically, the DeSoc application raises concerns about the spread of misinformation, as well as the liability issues related to decentralized protocols for illegal or harassing speech. Furthermore, there is still a lack of clear regulatory guidance regarding data protection, consumer disclosure requirements, and the tax implications of token transactions.

Like all decentralized applications built on Blockchain, DeSoc applications have the potential to increase freedom and opportunity globally by giving creators more ownership and control over their content and networks. Blockchain, as a groundbreaking technology, enables direct peer-to-peer information sharing and brings various application scenarios that benefit from its efficiency, transparency, and accessibility. In a Blockchain-based world, transparency and trust are built into the decentralized protocols themselves, and these safeguards will continue to strengthen as technology evolves. Therefore, legislators and regulators focused on the development of social media should concentrate their efforts on centralized participants that require additional transparency and information disclosure.