In the present spectrum of time, our world revolves around ‘Fi’ – WiFi, GameFi, DeFi to name a few. And the recent player to join the league is SocialFi.
If you are wondering what exactly ‘SocialFi’ is, we’d suggest that you hold your horses and rewind a bit about GameFi and also imagine a world where GameFi and SocialFi go hand in hand.
A Run-through of GameFi
Gaming has surpassed Hollywood when it comes to being one of the fastest expanding entertainment sectors. The $200 billion industry has reigned for decades, uniting more than 40% of the world’s population. However, the hottest new trend of GameFi is bringing a massive transformation to the gaming business. It is an interesting game concept that ties together decentralised finance (DeFi) and non-fungible tokens (NFTs) to let players earn cryptocurrency by playing blockchain-based games.
The play-to-earn model of GameFi games has been earning accolades ever since its inception. Why is it so abuzz? Because it allows players to earn money by playing the games, so much so that in some cases a proper living can be earned.
Now that we have skimmed through GameFi, it’s time to know a bit about the evolution of games before knowing the important role of SocialFi in it.
The Gaming Evolution: From Entertainment to Earning
The gaming industry travelled a long journey from video games, online games, eSports leagues and now — GameFi, a model that has shifted the purpose of gaming from entertainment to earning.
GameFi has taken the gaming industry by storm and its market value of $55.38 billion in February 2022 testifies to it. However, the wind is now blowing towards a more efficient model—SocialFi. The importance of social networks in today’s world and the engagement metrics of GameFi form the foundation block of this new paradigm.
Is SocialFi the New GameFi?
SocialFi can be touted as the new age for social media. Wondering why?
The privacy issues of major social media platforms like Instagram, Facebook, Twitter are a cause of concern. Nothing much has materialised when it comes to saving the general public from the tentacles of big giants exploiting their users’ private data and sensationalising news.
Enter SocialFi- an emerging decentralised social network with DeFi functionalities that provide users immense flexibility and benefits. Features like robust data privacy, transparency, and fair monetization, make SocialFi an efficient model in the blockchain space. The prospect of earning digital assets like NFTs becomes all the more promising for end-users in the long run.
Since this new technique of socialising is done over the blockchain, no handful of large companies can claim to make massive returns from harvesting their users’ data. Every user is responsible for their own data and has complete ownership over it.
Furthermore, it also allows users to earn income by sharing their content and data on these platforms. And, since advertising profits are split much more equitably and transparently, content creators may earn more by advertising on SocialFi networks than traditional social media.
The Duo of SocialFi and GameFi
GameFi is already on a roll to take over a huge portion of the worldwide game industry, and merging GameFi with SocialFi can just give both platforms the boost they need to become ubiquitous. In simple terms, it involves combining the relevance of social networks in today’s world with the engagement of video games.
Data privacy, transparency, and equitable monetization of SocialFi paired with those of GameFi could be the key factors in changing the mosaic of gaming and web as we know it.
Several projects are trying to offer different flavours of SocialFi. But, the most successful in merging GameFi and SocialFi is ‘Superhero NFT Wars’ (SNW). Known as one of the top-three SocialFi projects, it is unifying NFT, social media and DeFi communities under one roof to create more value for each individual user through marketplaces, social events, and NFT trading.
Does SocialFi have a bright future? Will projects that harness this new concept with the help of GameFi pop up in the near future? Well, you can’t exactly predict it. But, keeping in mind the historic evolution of the gaming industry, it is likely to catch on to this buzz, as it may very well change the way we interact on the web. So, you can surely anticipate a world where several flocks of users shift away from Twitter and Instagram to blockchain powered SocialFi platforms, intertwined with GameFi.