Social media networks are continually changing each day to meet the standards of consumers, technology, and the systems that power them. Some social media networks are even powered by blockchain, a way of tracking transaction history on a a shared ledger that cannot be altered. Blockchain networks are also used in cryptocurrency to track each transaction. Facebook allows Venmo users to login using their Facebook profile, and then utilizing their transactions that way. Snapchat allows users to use ‘SnapCash’ to send money within the app by loading it from their bank account. These shared transaction ledgers have the potential to create their own cryptocurrency to make profits within the applications themselves. Instead of users loading money directly into the social media applications from their bank account, they could potentially purchase the applications own form of cryptocurrency and then the platforms would actually gain profits along with profits made from advertising revenue.
Blockchains work is by creating a shared ledger within the company or network. Instead of each profile creating their own postings and transactions recorded separately, the transactions and posts are recorded all in the same place. Each transaction is recorded in a ‘block.’ Each block is grouped in with other blocks. Then all of the blocks are connected to make a chain of blocks. Individual blocks have their own crypto tags for easy identification upon transaction recall. Essentially each social media user would have their own cryptotag. It’s a way of making an individualized network, more transparent and safer against hackers.
Social media has received a significant amount of backlash, especially Facebook as the advertisements are being targeted utilizing consumer information from digital data collection. As advertising revenue becomes the main way that social media makes profits by making it free to consumers, social media outlets are going to have to learn more ways to actually gain profits due to the consumer outcry of data collection.
Being able to send money and transfer money through social apps is a consumer benefit, but it would be more of a benefit if social media accounts utilized their own cryptocurrency. This cryptocurrency could even be used in purchasing paid advertisements from advertisers. So instead of charging rates based off of national currency exchanges, platforms could develop their own globalized cryptocurrency that all users would have to use when making transactions. The transactions could be powered through a blockchain, thus providing a unchangeable and shared transaction ledger. This would create more transparency in transactions and make a global currency that could be purchased from any user.
The internet already provides users with globalized efforts to understand humanity from an integrated stand point. Users are able to connect with others, learn and see other cultures, and educate themselves about global issues. Social media is continually drowning in organic content, paid advertisements, boosted posts, and trolls. Blockchain powered networks has a way of creating transparency and helping to eliminate hackers. Since a blockchain network creates irreversible transactions, utilizing it for social media would have content posters much more aware of what they are posting, since it would essentially never be deleted from within the network. This would also help with fact checking and data recall for consumers and businesses.
Social media is meant to be a good thing, but in more recent years has social media ‘trolls’ have found their way. With all the different facets of social media, it’s important for consumers and businesses alike to focus on the good in social media. With blockchain, they would be able to search and eliminate hackers and robot accounts much more easily than with basic powered networks. Blockchains make it easy for businesses to recall not only consumer data, but within social media, each individual profile as well. Some blockchains are private and headed by blockchain managers that continually monitor and update the system. Only members with coded access may enter into the network. Other blockchain networks are public. These public networks are more closely associated with cryptocurrency trading as the network of varying cryptocurrencies is continually changing.
As more online businesses and social media networks continue to adopt blockchain workings, it may even pour down into regular businesses when doing transaction recording. Those little white screen with the debit card reader and prompted tip screen, may someday be powered through blockchain. Despite the integration of blockchains, however, there are still plenty of businesses, supermarkets, galleries, and reputable restaurant cafes that do not use blockchain transaction recordings. One of the biggest benefits to blockchain technology is the fact that transactions are recorded in real time. This is a great positive because normal digital purchases can go through multiple communications lines before actually showing up as a recorded transaction in a bank account online history. The digital communication wait time in financial purchases actually ends up tying up finances until it’s recorded. With blockchain, every transaction is recorded in real time and cannot be altered, making it a potentially beneficial future option for all types of businesses and networks.