Need for Decentralised social media

Jai Shri Ganesha
  • Who owns the data ?
  • Who benefits from this ?
  • Who provides content to them ?

Beneficiaries of the data:

Content providers:

  • How do they monetize these content ?
  • How much benefits does people who are connecting get vs the platform and the profit margins they generate ?
  • What is network effect and why it is hard to replicate ?

Content monetization:

  • Paid advertisements
  • Premium subscription for job searchers.
  • Headhunters who wants to look for candidates looking for jobs.
  • And probably more ways (and not less) for which more research needs to be done.

Benefits we get Vs the Profits that we generate for the platform:

Network effect:

LEARNINGS FROM ABOVE AND HOW CAN THIS BE IMPROVED

  1. Data ownership should be clearly defined so that we are able to control who uses the data that we provide.
  2. When people monetize the data, the profits should be distributed that reflects the intentions of the community as they define it.
  3. When the community members have a tough time, profits gathered earlier should be utilized to help the individuals.
  4. Institutions who benefit from the platform pays for the monetization of the platform and similarly the headhunters who provide candidates via this platform.
  5. Voting on important issues in the community should be possible.
  6. Content monetization should be transparent and profits generated should benefit the stakeholders.
  7. Networking should be possible by choice and not looked upon as profit generation mechanism, but a social coherence mechanism.
  8. Community can vote on rules that govern monetization of articles that are published on the platform. If an article gets enough votes then benefits accrue to the owner of that article and people who review and comments on that.
  9. For the maintenance of the platform a treasury system can be created with voting rights belonging to the community, who can propose projects that benefits the community.

ECONOMIC MODELS FOR DECENTRALIZED PLATFORMS

Macro Trends

  • CBDC: Central bank digital currency probably based on some sort of blockchain based technology. China is leading the way with digital Yuan and US, EU will follow. This will basically redefine banking as we know it. The normal banks will no more be needed for controlling and distributing currency as digitization will drive better management systems around currency and also allow better integration with token based block chains that exist today.
  • As flight from FIAT happens, Bitcoin gains ground as a store of value that removes much of the drawbacks of Gold as value store. Given it is not under the purview of any government, it is more trustworthy than any CBDC where fear of mass surveillance of assets can kick in unless strong counter measures are in place.
  • Failure of the FIAT currency system where no more the Keynesian economics seems to be working. (The incremental effect of introducing liquidity into the systems is negative.)
  • We are now staring at Negative interest rates and consequent bank failures.
  • Rise of the AI driven systems being introduced in every walks of life.
  • Lower production cost and lack of inflation
  • Higher unemployment of the masses as there is an acceleration of services going digital. Although it has started as a covid dependent phenomena, the reestablishment of the new normal is already on the way.
  • Rise of interoperability in third generation block chains such as Cardano, Polkadot, Algorand etc.
  • 2020 marks, 50 years epoch of the SWIFT protocol which is now on the verge of being displaced by faster transactions speeds in different block chains in addition to providing many other benefits of instant settlements, smart contracts and host of other value added service.
  • Also this decade 2020–2030 marks 100 years since the great depression of 1920s. It started with the bang of COVID-19 but expected are some big changes as it did 100 years back.
  • are now moving into a new era of financial systems governed by decentralized revolution in form of different crypto currencies.
  • Better interoperability of Blockchains with different fiat currency when CBDC initiative gets implemented. (regulations apart)
  • Higher unemployment means people will now seek value in their work on a more granular level than the last decades. The institutions we have nurtured in the past have to adopt to the new normal and provide more distributed value added services.

Economics of Distributed platforms

From statista: Annual revenue of this platform. World suffers they enjoy!
  • Out of each user on linkedin, they earn Millions of dollar as a gross revenue.
  • And again to repeat higher the unemployment rate higher the network effect and higher their earnings.
  • Earnings from people’s misery with not a cent given back to the people who create the network.
  • Is this a fair thing that these damn big blood sucking corporates are doing ?
  • Why are we enslaving ourselves via this corporates and the way they are entangling our social life ?
  • Why are we not getting back a dime that we are making for these platforms ?
  • Proliferation of decentralized systems based on blockchain with smart contracts, on chain voting and host of dapps allowing interoperability with the FIAT world
  • CBDC introduction: making interoperability even easier
  • Higher unemployment: Thus people unable to pay higher subscription fees to these platforms and need to search for jobs and showcase their skills.
  • Initial 3–4 years will be spent in creating the platform by using VC funding, as it will be just like normal development of any social media platform.
  • Except we use third generation blockchain to allow distributed spread of value from the platform. Let us sketch a simple story line to explain this and let us call our new platform T and associated token of same name.
  • Initially the platform issues a fixed number of tokens after receiving initial funds from seed investors.
  • User Tom joins T
  • Tom creates his own profile
  • Tom Invites his friend to join this platform
  • Tom starts to write some interesting article that acquires likes/kudos from his new colleagues….
  • Gradually over the years he is able to communicate about his professional works on this platform and able to create suitable content that he is capable of.
  • When the headhunters search the profile of persons, they can only unlock the profile if they enable a transaction using T tokens. When this transaction happens an underlying contract transfer this token both to treasury and to the account of the person whose profile is being viewed.
  • When institutions have to host themselves on the platform and publish jobs, they will be paying from the tokens they have obtained in exchange for fiat. Job seekers can see certain number of jobs for free, but for more jobs they may need to pay a nominal amount using token they have gathered or purchased. Thus loyalty can be baked into this system and long time users are benefitted.
  • Now once the platform gains maturity advertisers flock in and want to show their services to certain user groups. They will also pay using T tokens. But now when a user clicks on an advert and acts on that link, he will be paid in part using T tokens, and rest going to treasury of the system.

Stability and Downtime:

Google went down for an hour on Dec 14, 2020.

Way to the Distributed platform

  • Framework to issue smart contracts on blockchains
  • Ability to scale to millions of users.
  • Distributed identity so that people do not make fake identity to trick the platform.
  • Regulatory framework that governs the distribution of tokens taking into account the different financing moments. Distribution ratio of the tokens to the stakeholders would be different over a period of time especially because the tokens themselves will be tradeable entity with varying price due to the market demand/supply equation.

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Actively engaged in cardano community and also a software engineer by profession. Holds an MBA from Kellogg and Graduate of IIT Kharagpur India.

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Nilay Saha

Nilay Saha

Actively engaged in cardano community and also a software engineer by profession. Holds an MBA from Kellogg and Graduate of IIT Kharagpur India.

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