Social media platforms like MySpace, Friendster, Facebook, and Twitter reshaped communication with the infinite connection of the internet. However, these platforms are centralised protocols. Because it all connects to one server, this often leads to privacy breaches, data misuse, and lack of user control. As social media platforms intensify their rules on users, people are actively seeking better and more secure alternatives.
Enter social finance — SocialFi for short. SocialFi runs on blockchain technology and functions in a decentralised network, giving more freedom to users and better security for both people and personnel. As a reward for using a SocialFi platform, users can earn money just by existing on it. As of April 2024, 5.07 billion people have social media accounts. This number makes SocialFi projects able to appeal to a wide audience, which could lead to mass adoption.
SocialFi is rapidly experimenting with diverse social media functionalities, potentially beginning a new era of digital interaction that gives more power and liberty to the people.
Leveraging zero-knowledge proofs for enhanced privacy in SocialFi
SocialFi relies on zero-knowledge (ZK) proofs. Providing anonymity in SocialFi, zero-knowledge proofs (ZKP) facilitate secure and private user identity verification. Their integration represents a major advancement in how user identity is safeguarded, managed and secured online.
According to research by Protocol Labs, the ZK proof generation market will reach a US$10 billion value by 2030, with an expected demand for nearly 90 billion ZK proofs to power Web3 services.
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“The ZK proof market is up-and-coming and already moving towards tangible use cases. Identities are at the heart of the rapidly expanding decentralized social layer, including decentralised social media, DAOs, reputation systems, and on-chain gaming,” Kitty Horlick, Director of Rarify Labs said, “Moreover, the use of ZK proofs is accelerating due to the urgency with which identity credentials are needed both within Web3 and Web2 as AI-generated bots and deep-fakes make it increasingly difficult to discern humans – and human-generated content – from machines and AI-generated content.”
For example, SocialFi platform AsMatch has a unique approach to social connectivity, emphasising matches based on shared interests. The platform uses ZK proofs for identity checks like zkKYC. It integrates Manta Network’s zkBAB and zkGalxe for decentralized and trustless KYC verification on-chain.
Additionally, the platform goes beyond the concept of typical social media by nurturing connections and enabling trade among users. The platform’s ZK badge system allows users to verify financial credibility, such as “whale” status, or individuals or entities with significant holdings of digital assets.
Rewarding community participation
SocialFi platforms revolutionise engagement by rewarding user participation, standing in stark contrast to traditional social media’s one-sided value extraction. These platforms, such as Friend.tech and AsMatch, leverage NFTs and digital assets to reward user contributions ranging from content creation to community involvement. This model not only motivates active participation but also fosters a sense of trackable ownership and social time investment among users.
Through such mechanisms, SocialFi introduces a sustainable ecosystem where contributions tangibly value and reward users, marking a significant shift from conventional models that monetise user input without providing direct benefits to the contributors themselves. Friend.tech, a decentralised social network, encourages user engagement through a system called “Keys”, enabling individuals to tokenise and monetise their social influence for access to private chat rooms and exclusive content.
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Innovatively expanding on this concept, AsMatch, the first Social L3 on Manta Network powered by Polygon CDK and Celestia DA, democratises SocialFi with a community-first approach. AsMatch supports the everyday user by offering rewards for interactions within the platform. Users can elevate their engagement by minting and bonding the zkPortrait, a unique AIGC zkSBT that serves as a Decentralised Identity (DID).
AsMatch’s complete decentralisation and secure, private communication systems underscore a commitment to user empowerment and reward, ensuring that each interaction is valued and recognised in the Web3 space.
Critical role of innovations
The decentralised social media sector has matured, offering Web3 counterparts to traditional platforms. Mastodon serves as a decentralised version of X (formerly Twitter), operating through independent servers. Meanwhile, DTube enables a community-driven video-sharing service that rewards content creators with cryptocurrency, democratising the content creation and curation process.
However, the landscape still needs further development. The mainstream appeal of social media has led to 1.4 billion hacked users monthly. As malicious attackers change their methods, so does cybersecurity. Innovations like ZK proofs are going to be crucial for enhancing SocialFi platforms’ overall security and data integrity, improving user satisfaction with verified digital identities.
In the future, it is expected that the Web3 social sector will exceed US$101.2 billion by 2033. These innovations will shift toward enhancing user control, privacy, ownership, and monetisation.
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