Social Networks Challenged by Blockchain Technology
Blockchain technology, best known as the backbone of the wildly lucrative Bitcoin cryptocurrency, is moving into the Social Network space in an effort to shake up the status quo.
Established social sharing sites such as Facebook, LinkedIn and YouTube have remained relatively unchallenged in the online space for more than a decade. These websites run high profit margins by conglomerating information and content, created by users, and selling said content or analytic data, principally for advertising purposes.
This centralized control of profit is now being challenged by blockchain-based social platforms. Indorse, a LinkedIn style social platform based on Ethereum, aims to decentralize wealth distribution within the social network.
Established social networks function because users, when posting, automatically relinquish rights and ownership to the content they have posted on that social platform. This means subsequently relinquishing rights to be paid for the creation of that content. Social network’s grow as the creators’ audiences grow, aggregating more content and more potential for profit for the websites owners.
Indorse plans to change this model by paying users for the content and data they create. On Indorse’s soon-to-be released platform, rights to the content will be retained by the creator, who will receive cryptocurrency tokens in exchange for quality content, curation or audience building. This is essentially the opposite of how established social networks operate, and is forecasted by social influencers to greatly disturb the social market.
Calling itself a decentralized professional network, Indorse is currently running it’s ICO to raise crypto-funds in order to complete development. It is just one of several platforms experimenting in this new social-blockchain space.
Social Influencer Brian D. Evans compares this move to Uber and the taxi industry . “On top of solving major issues in the social-networking space, it will force some of the big players to adapt or die. The beauty of platforms like Indorse utilizing blockchain, is that it forces change the same way Uber forced the taxi industry to change…they have to react or become obsolete.”