Background & Problem Statement
The Problem with Web2 Social Media
Ownership & Data – Centralized platforms control user data and extract value from it without fair distribution to users.
Creator Monetization – Most revenue flows to platforms and advertisers, leaving long-tail creators struggling to build sustainable income.
Censorship & Asymmetry – Moderation policies are opaque, inconsistent, and often biased toward political or commercial interests.
Fragmented Ecosystem – User identities, content, and digital assets are locked into silos and cannot move across platforms.
The Web3 SocialFi Opportunity
Ownership & Portability – User data, identity, and content remain within user-controlled wallets and can move freely across platforms.
Economic Transparency – Rewards and fees are recorded on-chain, ensuring full transparency and fairness in value distribution.
Community Governance – Token holders and active participants define the rules and direction of the platform via DAO mechanisms.
Interoperability – Cross-chain infrastructure allows assets, content, and communities to thrive across multiple blockchains, increasing reach and liquidity.
Web2 vs Web3: A Comparative Lens
Ownership & Data
Controlled by corporations; user data monetized externally
Owned by users; stored in wallets with on-chain verification
Monetization
Ads & platforms capture most value
Direct user/creator rewards via tokens and NFTs
Governance
Centralized, opaque, unilateral decisions
DAO-based, transparent, community-driven rules
Censorship
Selective, non-transparent, often biased
Decentralized moderation, community-curated mechanisms
Interoperability
Closed, siloed ecosystems
Cross-chain bridges & portability across blockchains
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