How Blockchain Can Solve Social Media Privacy

It’s All About Privacy In The Social Media Scenario

Loss of personal privacy, data protection and ownership of information are the main drawbacks of social media and as the saying goes, that if you’re not paying for it, then you’re the product. Together with this kind of centralized control model of social media which has already become a thing of the past, blockchain technology has to be thanked specifically for Ethereum that resulted in bringing the next generation decentralized models of social media. An open software platform, Ethereum allows developers to build and make available decentralized applications.

To illustrate this, a good example is Indorse, a rewards-based decentralized professional network on Ethereum blockchain developed by indorse Pte, LTD, a Singapore based blockchain company. Using a LinkedIn style professional networking g model, Indorse members retain data ownership earning rewards to share professional skills and using the platform. In other words, users are incentivized with data ownership and reward system based on blockchain principles of decentralization and tokenization. Replacing sensitive data from the business systems with an undecipherable token it can store the original data in a secured cloud. 

Indorse seeks to resolve three basic problems of social networking platforms, through its platform working on economic, autonomy and trust. Whereas the economic conundrum comes with traditional social media, is that the company can’t make money without selling your data and actual providers of information don’t receive any monetary reward that seems unfair. 

Referring to the concentrated control over the platform, social media’s autonomy problem rests in just a few hands. Because of the centralized power making all decisions, the trust problem springs from the autonomy problem. 

In a white paper written by Indorse, it highlights that “ to be clear, as we are not against advertising, we are certainly not against social media whereas we are against the centralization of social media, believing the solution is a new model of social networks with the decentralized one placing ownership of information back in the hands of members.”

How Indorse Works

Using internal rewards called Indorse Rewards and a reputation system dubbed Indorse Score, it incentivizes members to not only add their skills and accomplishments but also endorse other members as well. As it looks to engage members to actively participate on the platform, it is by this system that members earn indorse rewards. While the Indorse decentralized platform involves advertisers, purchasing space using Indorse Tokens, they are bought through an exchange apart from these tokens that will be shared with members creating the content.

As it completed its token pre-sale, Indorse ran from July 26, 2017, to July 29,2017, receiving 13,807 ether in public pre-sale and approximately 4000 more ether in private placements holding a token sale on August 8, 2017, through Sept. 8, 2017. 

Rising Trend Of ICOs

Increasing in popularity is the method of raising money for projects by selling tokens via an initial coin offering and according to UK based Coinschedule, it provides cryptocurrency ICO statistics, worth us $20 billion raised in ICO through October 4, 2018. Exceeding this is the venture capital investment firms related to Bitcoin and blockchain technology.

When considering the report, it was the securities and exchange commission that stated the issuers of distributed ledger or blockchain technology-based securities has registers offering and sales of securities unless a valid exemption applies. Further adding to it the report said those who participate in the unregistered offering may become liable for violations of securities laws and providing or trading in these securities must register unless they are exempt. To ensure investors are sold investments, including all proper disclosures, subject to regulatory scrutiny for investors protection, this is the purpose of the registration of the federal securities laws.  

The CEO and Co-founder of Coinsuilium Eddy Travia have shared a similar view that said, “the market nor the crypto community were surprised with the sec message following its review of the DAO. The tokens are being seriously considered by regulators across the world is the positive aspect of this message and the clear position by regulators serve the token economy as a whole.” Further adding he said, “thousands of token smart contracts and many thousands more are created in the next six months. This, in turn, is putting immense pressure on founders as they find adequate legal advisors, technical experts and marketing consultants with experience in a token generation event.”

The Bottom Line

While it is up to Indorse to create a parallel decentralized version of a professional networking platform, the other projects the following suit will surely one day build a decentralized world in the social media networking scenario. Along with decentralized platforms, the tokenization is emerging in a big way and as the trend continues, more regulations are created over time.