Blockchain technology is becoming more popular within SNS (Social Network Service) market as it can safely store account information and posts and compensate users with cryptocurrency. Current social media such as Facebook and others are expecting to have their platforms based on blockchain.
According to industries on the 28th, number of users of blockchain-based social media such as Steemit, Akasha, and D.Tube is rising noticeably.
Steemit, which became the first social media to introduce blockchain technology in 2016, gives out cryptocurrency such as Steem, Steem Dollars, and Steem Power to its users who receive many ‘Upvotes’ after uploading their posts. This compensation system is based on blockchain technology. Even members who clicked Upvote also receive 25% of profit. Steemit inputted this idea after considering that number of activities will be low if it only compensates those who upload posts and contents on their accounts. Contents are also recorded separately within blockchain. It is impossible to modify or delete contents after a week.
Number of members of Steemit is rising rapidly as there were incidences when people earned $15,000 in just one day through Steemit. Number of Steemit users closed upon 900,000 by end of the 14th of March. It is estimated that this number will surpass one million within this one month according to this upward trend. Number of users has practically doubled within 3 months since the number surpassed 500,000 at the end of last year.
Akasha, which is carry out a beta service, is compensating Ethereum instead of issuing its own cryptocurrency because it believed that its users will only focus on cryptocurrency instead of its technical skills and services if it issues its own cryptocurrency. Since it is a latecomer to this industry, it is looking to have better UI (User Interface) and UX (User Experience) than Steemit to increase number of its users.
In South Korea, Humanscape established a community for patients based on blockchain. It compensates patients and medical professionals, who are the main agents for producing information within this community, for producing intellectual contents.
Current social media is also announcing a change to blockchain.
tataUFO, which is called Instagram within China, recently announced its plan to decentralize to ICO (Initial Coin Offering). This company is a social messenger that was created by a South Korean developer and is enjoying its growth as number of its users surpassed 11 million with young people from large cities such as Beijing and Shanghai at the center.
Facebook is also considering about introducing distributed processing technology such as cryptocurrency.
“People think that IT (Information Technology) gathers power rather than distributing it.” said CEO Mark Zuckerberg of Facebook. “Distributed processing technology takes power from centralized systems and returns it to people.”
Recent growth of blockchain-based social media was caused by feeling of fatigue towards current centralized social media. While social media earned money through contents produced by its users, it could not actually distribute its profits back to its users. “Steemit was created so that people can earn profits through their own contents without any advertisements.” said CEO Ned Scott of Steemit.
There are no concerns about account information being leaked from blockchain-based social media. Because every data is stored separately, it is impossible for information to be leaked unless hackers hack into more than half of users from network. People do not have to worry about losing data from stoppage of service as well since central servers do not exist.
“It is a bit impractical to look at recent blockchain-based services as social media since they are in a form of blogs.” said one expert. “It is also a concern that these services cannot guarantee values of cryptocurrency.”
Staff Reporter Yu, Changseon | yuda@etnews.com