Industrial designer and founder of Jackson Hedden, LLC.
The social media landscape has long been dominated by a handful of centralized platforms that hold almost complete control over both the market and content creators. These platforms have become a ubiquitous part of modern society, but they also have significant drawbacks including centralized control of content, lack of ownership for creators and a heavy reliance on algorithms.
However, I believe that decentralized social media platforms offer a new approach to social media that can help businesses rebuild trust while providing creators with more control and ownership over their content.
Decentralized Social Media Platforms
As an example of a platform in this space, a company I currently work with is INMO, a decentralized social media platform focused on providing creators with a forum to showcase their creations and profit from their content without being subject to controlling algorithms.
Other platforms such as Diaspora, Damus, Mastodon, Peepeth and Hive are all decentralized social platforms that have found alternative ways to make money through things like token-based rewards, subscriptions, community fees, storage fees and partnerships.
As more and more companies like these emerge on the market, I see them providing different features and functionalities that can help both businesses and users connect.
Moving Away From Ad-Based Models
Currently, every major centralized platform uses the ad-based model as its primary source of revenue. This creates a conflict of interest between the company’s financial interests and the interests of its users, often resulting in companies prioritizing the goals of advertisers over the needs of users. This can lead to trade-offs that can negatively impact user experience and privacy.
Data Privacy
As social media has become a more integral part of our lives, so too has the concern around data privacy and censorship. With many centralized social media platforms collecting data on their users and using it for a variety of purposes, including advertising and algorithmic recommendations, it’s no wonder that users are becoming increasingly wary of who has access to their personal information.
By design, decentralized platforms prioritize privacy and security. Unlike current social media platforms, which store user data on centralized servers, decentralized platforms distribute data across a network of computers, making it much more difficult for any one entity to access or control it.
Application To Businesses
Transparency And Trust
One benefit of businesses moving to a more decentralized social media platform is how it will affect the relationship between the business and its customers. These platforms are designed to enhance transparency and trust. Using blockchain creates the closest to a tamper-proof record of transactions.
Using this network, businesses can confirm that transactions are protected and verified. This advantage will eliminate the need to rely on a single centralized institution such as a bank. With a real-time view of the supply chain, customers can see where their products are at each stage of the production process. Businesses benefit because they can reduce the number of intermediaries involved in the transaction, making it both safer and cheaper for everyone involved.
Control Of Data
Another benefit for businesses is how decentralized social media platforms allow people to have ownership and control over their personal data. This has been a huge pain point in recent years, and I think this newer system offers a clear solution.
Using centralized platforms myself, there have been countless times I have come across an item on Instagram or Facebook that looks completely reputable, attractive and useful in my life. After further investigation, I quickly realize the ad and/or the company are a total scam. I believe that the reason this is such a large issue is that centralized brands are heavily concerned with the money that they receive in ad revenue and monetizing the data of their users. Decentralized social media platforms can approach this issue by sharing data among multiple apps and services, allowing them to eliminate the use of bots, fraudulent accounts and spamming accounts.
Hurdles To Consider
Working with decentralized platforms does have some hurdles businesses have to consider—largely because many of these platforms are so fresh. Like the centralized platforms before them, decentralized platform issues include general technical issues, issues with users being able to find/connect with other users, dependence on third-party services and limited features. But as technology advances, I foresee businesses being presented with new opportunities to improve their operations and connect with customers through these platforms.
Not only do decentralized platforms offer users more control, but they can also offer control for businesses over who can advertise to their users. This can lead to a more targeted and effective advertising strategy. Furthermore, decentralized platforms can empower businesses to find creative ways to get users to share their ads on the platform, organically leading to increased visibility and potentially a larger customer base through viral marketing.
The symbiotic relationship between businesses and the platform both benefits from increased exposure and engagement. By giving businesses greater control over their advertising, users are more likely to see ads that are relevant and interesting to them. This can lead to a more positive perception of the business and increased customer loyalty.
A First Step
Overall, decentralized social media is not a cure-all system and is still in its developmental stages, but I think the benefits are clear. If businesses are looking for a way to repair the trust between themselves and their customers, this is a step in the right direction.
The goal should be to reassure the customer and make them feel safer when it comes to making purchases. The decentralized system can help address the scammers and the issues they bring to the table for both parties. If your goal is to keep customers, reinforce their trust in your business and continue to grow your customer base, I would highly recommend looking into decentralized systems. As changes in technology, user preferences and security arise, it may help your business change for the better.
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