SocialFi has failed to take off — Here's what needs to change
SocialFi aims to empower users by giving them control over content and data monetization, potentially reshaping the $200 billion social media advertising market. However, current platforms struggle with low user engagement, as seen with Friend.tech's decline from 80,000 to under 10,000 daily active users. Technical limitations of blockchain, such as low transaction speeds and high fees, hinder user experience compared to Web2 platforms. SocialFi faces fragmentation due to a lack of interoperability among different networks, complicating user engagement. Solutions include developing purpose-built infrastructure for social applications and modular blockchain architecture to enhance scalability. Successful SocialFi could enable true ownership of identity and content, portable social graphs, and innovative revenue-sharing models, but significant barriers remain before mainstream adoption can occur.
