The Link Between Blockchain Technology and Social Media

We are currently witnessing a rise in the price of Bitcoin and other cryptocurrencies, while social media platforms have been steadily increasing their importance over the years. To an untrained eye, there is no coincidence between the two trends, but those who have been closely monitoring the latest developments claim that there are many reasons for the growing popularity of both. Namely, places like Facebook, Twitter and YouTube now accept cryptocurrencies and their prices have risen significantly due to the fact that many more people are now using them, because social media platforms allow such transactions. This text examines this and other links between blockchain technology and social media and if you’re interested in the topic, you’re likely to find some compelling arguments in it.

Cryptocurrency and viral content

When social media started emerging, even those who posted viral content saw very little in return. We can rightfully say that in those days creativity was not adequately rewarded. However, as the number of social media users rose, so did the opportunities for monetizing popular content. The introduction of a technique called “blockchain” has provided a way to encrypt transactions in blocks, so that each one is accounted for. This has made possible for content creators to reap more benefits.

The social aspect

The main purpose of social media is to allow users to connect with one another and hope for some viral content that gets millions of hits all over the world. Users talk to each other and news travels instantly through Instagram, Twitter, Facebook or Reddit. Many of them are the same people equipped with the best bitcoin mining hardware, trying to jump the bandwagon. This has had impact on the value of cryptocurrencies, which has fluctuated as a result of online discussing about platforms and currencies. If the news is good, the value rises. If it’s bad, the price is lower and the fact that news travels so quickly and that it’s available to all users of social media means that the price is likely to fluctuate, even if the news is not true. For example, news of a hack can cause the value of a cryptocurrency to plummet, even if the breach was inconsequential.

Privacy of information

Social media privacy is a growing concern, and rightfully so. Many apps keep track of all user data and images that have been exchanged between users. On the other hand, blockchain technology enables users to make transactions in a private way. Only the sender and recipient are aware of the contents of the transaction. This is the ultimate level of privacy online. On social media each action that you take may be recorded and even used in different ways, but blockchain technology could eliminate these privacy issues.

Payment

It’s not surprising that many social media are exploring their own payment platforms. For instance, Facebook is unveiling a payment feature through its Messenger platform. Understandably, Facebook then records all transactions that are made. This is a major privacy invasion issue which can discourage some users from using the technology. The role of blockchain technology could be to protect the user privacy in these types of financial transactions, which would make users feel more comfortable using certain social media platforms. 

Will the Relationship Balance Shift?

While there is no doubt that social media have played a huge role in boosting cryptocurrency to its current status and that global companies are seriously considering cryptocurrencies and blockchain technology as means of streamlining their business process, we could say that the balance seems to be shifting. Crypto-based social platforms are on the rise and solving many of the issues traditional social networks have in place for both users and businesses. The relationship between social media, cryptocurrency and blockchain will continue to evolve, and chances are it’ll be happening at a much faster pace, but it seems that there will be more of a two-way partnership in the future.

What will the future bring?

As we’ve already established, social media will continue to influence the future of cryptocurrency and blockchain technology, but they too will make their own mark in the social space. This makes a lot of sense, given that many of the core blockchain concepts are perfect solutions to many current social media pain points. By offering truly decentralized social content, more secure social networks and better consumer payment options, blockchain technology and cryptocurrency will surely change the way social media operate, which will in turn change how billions of users behave. One thing is for certain: both social media and blockchain technology are here to stay. We could also conclude that their relation and future will be even more tightly knit, and they will become even more dependent on each other. Exactly to what extent will the mutual influence grow is difficult to predict at the moment, but we can safely assume that the sky is the limit.