SocialFi applications have been hyped as a superior alternative to traditional social media. The buzz is based on its promise to give users back control of their data and, more importantly, ensure they earn a fair share of the revenue their content generates. These are significant benefits, but overall adoption of SocialFi remains slow, and it’s not clear if or when a true decentralized competitor to the likes of Facebook, Instagram or X will ever achieve the same kind of recognition.
The challenge for SocialFi lies in providing the same, fluid experience that traditional social media users have become familiar with. Users demand a simple login process based on a username and password, but in the Web3 world, logging in requires connecting a digital wallet, which, in turn, must be managed by the user. Digital wallets aren’t linked to email accounts, and users cannot just enter a simple, easy-to-remember password to access it. Rather, security is built on the use of a 12-word seed phrase that must be written down and stored safely somewhere. Lose the seed phrase, and you’ll lose access to that wallet forever, and all of the digital assets within it.
This is just one of several onboarding challenges facing SocialFi. For new users, there are a myriad of headaches, including the complicated terminology, challenging UIs, complex transactions, unexpected fees, security fears, scams and more. These onboarding difficulties mean SocialFi apps struggle to attract non-crypto natives to their platforms.
Transitioning from Web2 to Web3
Although SocialFi adoption has been slow, there are signs the industry is learning to overcome these onboarding challenges. One example of a SocialFi app done right is Chingari, the Indian short video sharing platform that was inspired by TikTok but has since grown to become one of that country’s most popular social media platforms.
Chingari’s secret is that it began life as a traditional, Web2 social media app, with a familiar UI and focus on user-generated content. This meant it was able to accumulate millions of users before its pivot to Web3. It was only in 2021 that Chingari began to transition into Web3, launching its native cryptocurrency token $GARI to power a decentralized economy that makes it possible for users to monetize their content.
Less than six months after launching $GARI, Chingari announced that it had hit a significant milestone with more than 800,000 active wallets, making it one of the fastest-growing SocialFi apps around. Chingari’s success lies in the clever way it introduced crypto to its platform, easing complexity by creating a wallet for each user’s profile and dishing out free $GARI tokens for those who like, comment on, and share content. In many ways, Chingari acts as a guide, holding user’s hands as they slowly become accustomed to crypto and Web3.
The User-Centric approach is key
The success of Chingari is primarily due to its popularity as a Web2 app, but Web3-native SocialFi platforms have also shown they can succeed using similar methods.
That’s certainly the case with Friend.Tech, a new SocialFi platform that made headlines last year for its rapid growth. Friend.Tech keeps things simple, integrating an embedded wallet solution from Privy that’s compatible with almost every notable blockchain ecosystem. Privy has created an “embedded wallet” that, like Chingari, abstracts away the complexity for users. It eliminates the need to write down and safely store a seed-phrase, but unlike Chingari it does so in a way that’s non-custodial, meaning only users can access the funds in their wallets, in-line with crypto’s decentralized ethos. By integrating with Privy and simplifying wallet management as much as possible, Friend.Tech was able to onboard over 100,000 new users within days of its launch.
Another successful project is RepubliK, a content monetization platform that aims to bridge the gap between Web2 and Web3 by merging the best bits of both. RepubliK has been designed to offer a more intuitive, user-centric experience similar to mainstream social networks like Instagram and X. Sign up is simplified with email or single sign-on tools like Facebook and Gmail, while the app’s UI and content functions will be immediately familiar with users of TikTok, Twitch and other legacy social media services.
Besides simple wallet management enabling easy access to crypto, RepubliK is built around a gamified XP system that rewards users for their participation and contributions. There are some centralized aspects within RepubliK, such as its AI-powered content delivery tech, but this is intentional to ensure a more streamlined experience for users unfamiliar with Web3. The platform keeps crypto transactions as simple as possible, allowing users to pay gas fees in its native $RPK tokens, so they don’t have to go through the hassle of acquiring Ether ($ETH) first.
Best of all, RepubliK makes it a cinch for users to monetize their content, with tipping features that allow fans to easily send tips to their favorite creators, as well as paywalled content that can only be accessed by paying a fee in $RPK, NFT minting, live streaming and creator tokens. Lastly, RepubliK invites users to participate as much as possible with its community voting system, allowing them to take part in decision-making on development issues.
RepubliK’s laser-focus on the user experience has led to some of the most impressive growth statistics of any SocialFi platform thus far, with its user base growing to more than 1.5 million since launching in early 2022
SocialFi is on the right track
SocialFi is a growing phenomenon that offers content creators unrivaled possibilities, but the user experience must be streamlined for it to surpass traditional social media networks. With their focus on seamless onboarding, blockchain interoperability, simple wallet management, efficient transactions and familiar functionality, the latest generation of SocialFi apps offer a much more welcoming environment for anyone starting out in Web3.
As the SocialFi space evolves, developers increasingly recognize the need to focus on the user experience and inclusivity, and this approach appears to be having the desired effect. Decentralized social media is rapidly becoming more accessible, paving the way for a more equitable environment that rewards those who put in the time and effort to create great content.
Featured image credit: Freepik
