The emergence of Web3 technologies has brought Web2-based companies to consider amendments to their current products and services. Many leading brands
The emergence of Web3 technologies has brought Web2-based companies to consider amendments to their current products and services. Many leading brands are using Web3 technologies such as nonfungible tokens (NFTs) to promote their brand as well as show their affiliation with emerging tech.
Social media is another domain where Web3 seems to have the biggest impact. Facebook rebranded to Meta and has shifted its whole focus from being a social media platform to becoming the future gateway of the metaverse. Meta-owned Instagram announced it would add NFT minting and trading services within the app. Reddit, another prominent social media platform, became a hub for NFT trading with 3 million wallet holders on the platform.
Apart from NFTs, social media giants like Twitter and Reddit have added support for users to tip content creators in cryptocurrency. However, the majority of social media platforms lack inherent crypto integration.
Twitter was reportedly working on developing its own crypto wallet, and with Elon Musk’s recent $44-billion acquisition, many believed that the social media platform could very well integrate a crypto wallet soon. However, recent reports suggested that Musk has halted crypto wallet plans for the time being.
Despite the current setback in the crypto wallet integration, market pundits are hopeful of seeing more Web3-focused services on the social media platform. Martin Hiesboeck, head of blockchain and crypto research at cryptocurrency trading platform Uphold, told Cointelegraph that Twitter already supports crypto tipping, thus adding crypto wallet support is the next logical step:
“Many in the crypto space are bracing themselves for how Elon Musk will impact the industry, and the response has been surprisingly optimistic. It’s clear Musk will drive the digital asset integration with the platform along. For instance, many platforms will offer their own crypto wallets in order to keep transactions close to their ecosystem. Twitter doing this is a logical step for a social network that already enables users to send tips in crypto.”
Musk’s acquisition of Twitter made headlines not just because of the controversies leading up to the finalization of the deal but also because he took the social media platform private nearly 13 years after it went public. With Twitter being a private company now, Musk has a bigger say in the decision-making process, and many believe this will help him push for more crypto and Web3-related services on the platform.
Jack Jia, head of GateFi at fintech firm Unlimint, told Cointelegraph that over the course of the past 18 months, a significant chunk of Web2 platforms have integrated Web3 support, and he hopes Twitter will move in a similar direction with Musk at the helm:
“You can connect noncustodial wallets like MetaMask to your Instagram or Twitter and display your NFT as a profile picture. Google launched a fully managed Ethereum node service much like Infura and Alchemy. Then Coinbase and Revolut look more similar today than different in terms of crypto features and functionality. So, Musk’s Twitter will have a great impact on crypto, probably by launching something similar to Aave’s Lens Protocol, decentralizing Twitter to make it more censorship-resistant.”
Web3 onboarding is still lagging behind and needs to be made simpler and faster, and social media platforms can help to onboard billions of people to Web3, practically overnight. This was evident from the success of the Reddit NFTs.
Max Kordek, CEO of blockchain infrastructure platform Lisk, told Cointelegraph that Web3 is not an independent internet ecosystem but rather a transition, and these platforms are best suited for onboarding.
“I think what people often misunderstand is that Web3 is not an exclusive new internet. Inside Web3 we also find Web2, the same way we found the former World Wide Web within Web2. In the case of social media integrating crypto, we are talking about a merge of Web2 and Web3. At the end of the day, a social media platform is just a distribution channel; Web3 doesn’t make them irrelevant. They will be ever more important in a more connected future,” he said.
Social media’s past hinders crypto and Web3 aspirations
Social media platforms started out as a medium to connect with people across the world, and in the Web2 ecosystem, they became an integral part of the internet. However, with time, these social media platforms also became a centralized host of data for millions of users, which major brands and companies rely on to advertise their products.
Social media platforms’ reliance on advertisers has led to malpractice at several social media platforms. These platforms were found to be selling users’ sensitive data to advertisers, and poor security measures have also led to data leaks and violations of privacy rights. This is the reason Kayla Kroot, co-founder and director of design at decentralized publishing protocol Koii Network, believes these…
cointelegraph.com