There is a lot of competition between social media sites these days. Because of this, some sites have come up with new ways to get people to interact, like Social Mining. The blockchain technology is used by social mining to make payment systems more profitable.
This new idea could change how people interact on social media sites online, especially in the Web3 era. But how does social mining work, and where can you find it now?
How does social mining work?
In crypto, social mining is the process by which people on a social media site earn tokens or rewards based on how active they are or how much they help the community. It includes using blockchain technology to incentivize content creation, user participation, engagement, and influence in the network.
On Facebook, Twitter, and Instagram, rewards are based on how many likes a post gets. On LinkedIn and Stack Overflow, rewards are based on app and workplace gamification and success.
But these programs didn’t give users any direct way to make money. Using token-based payment systems, blockchain technology makes it possible to turn time spent on social media into money.
How do you use Social Mining?
Social mining, which is different from social media data mining, is usually done on social media sites that use blockchain. Users are urged to make, share, and interact with content, and smart contracts track, verify, and tokenize their actions. Basically, the way the payment system works is as follows:
Tracking user actions:
A method built into the platform is used to keep an eye on and keep track of things like content creation, sharing, comments, and reactions. This information is used to verify actions that help with giving out rewards.
Scores or scores are then given to users based on how much they contribute and how much they interact with the site. Then, each user’s benefits are worked out based on these scores.
Token Allocation:
Smart contracts set the rules for how to earn tokens, how many tickets will be given to each active user in the pool, and how they will be given out.
Redemption and trade: Once users have tokens in their wallets, they can trade them for other cryptocurrencies on exchange platforms or use them on the platform to buy goods and services or access premium features.
Governance and Updates:
These coins have a monetary value, but users can also use them to take part in making decisions about the platform’s future. Users who have enough tokens can suggest changes and affect how the site grows.
Social mining encourages users to connect and make content by making them feel like they own it. This gets people involved in the community, helps it grow naturally, and helps the platform and other community-driven projects reach their goals. In exchange for their time and contributions to the site, users can get real money.
Projects for Social Mining
Social mining is an important part of the ecosystems of a number of social media sites. Here are some examples:
1. Steemit
Steemit is a social media site built on the Steem blockchain. It has a payment system to encourage people to make content and interact with it. Users get STEEM tokens when they post content, write on it, and vote for it. The awards are given to users based on how influential and involved they are.
Users who want to use the STEEM they’ve won on the platform can send it to an exchange site, trade it for another cryptocurrency, and then turn it into fiat currency. As of the middle of June 2023, Steem was one of the top 300 cryptocurrencies in terms of market size, and each of its tokens was worth $0.156.
2. HIVE
HIVE is a decentralized social media platform that grew out of a hard fork of Steem that was led by the community. This split happened after Justin Sun, the founder of Tron, and the Steem community fought for weeks. Hive uses social mining to encourage people to participate, give users more control over their material, and create an environment that is hard to censor.
Splinterlands and PeakD are just two of the many Web3 apps that make up the Hive community. As of mid-June 2023, the Hive token was worth $0.29 and had a market price that put it in the top 175 of all cryptocurrencies. This was better than its predecessor, Steemit.
3. YUP
YUP is a web3 social media tool that combines the best parts of different social media sites into a single feed. Members use one app to easily collect and share content from other apps, like Twitter and Farcaster. Users can also make bookmarks of anything they find interesting and share them with other people who use the platform.
YUP is built on the Yup protocol, which lets a group of active contributors decide what to do and how to do it. In exchange for their useful contributions, these people are given YUP tokens as a reward. On Uniswap, members can trade their shares for other forms of cryptocurrency if they want to.
4. Reddit
Reddit is called the “front page of the internet,” so you must have heard of it. The social news aggregation, content rating, and talk site has always had a reward system made up of Karma, up-votes, and awards. Users who make efforts that have an impact are rewarded for their work.
But in 2020, Reddit took it one step further by adding Reddit Moons. Reddit Moons are ERC-20 tokens that are built on the Arbitrum layer-2 solution. Unlike Karma points, which don’t have a monetary value, Reddit Moons do. They are given to active users of a subreddit called r/Crypto Currency, and they can be exchanged for a premium membership or Reddit Coins.
What are the pros and cons of social mining?
As the internet changes, it’s possible that social mining will become a big part of social media. As platforms compete for people’s attention, it’s possible that more of them will add real-money reward systems to encourage content creation and activity. But there are both pros and cons to think about.
Social mining has two main benefits for both the site and the users:
Social mining encourages people to use a social media site. This helps the community grow. Users are more likely to make high-quality content, take part in discussions, and work with others if they are rewarded for what they do. In return, the social media platform profits from more activity, which opens up ways to make money.
Empowerment and ownership: For the people who use social media, social mining changes the power structure by giving them a stake in the platform and a feeling of ownership. So, they can get something out of the time they spend on social media. It also promotes a less centralized and more user-centered approach to social media, which makes the ecosystem fairer and more open.
On the other hand, the way social mining tools are made raises several concerns:
Playing the system: It’s possible that users will try to game the social mining system so they can get rewards without actually doing anything. This could mean making fake accounts or making engagement numbers look better than they are. Such acts hurt the fairness of the way rewards are given out.
Privacy and who owns the data: For token allocation, social mining platforms gather and analyze user data. This raises questions about the privacy and security of the personal information gathered, since users don’t have much say over how the platform uses it.
Changes in coin value: Most of the time, the crypto tokens you get from social mining aren’t worth much. But this value, no matter how low, is unpredictable and can change, just like almost every other cryptocurrency. A symbol might be worth something today, but it might be worthless tomorrow. So, it’s a risky thing to own.
Overall, the main goal of social mining is to help people get along better with each other. Even though it is good at getting people to talk to each other, it could also bring bad people and cause trust problems. Only systems that are made to deal with these problems will stand the test of time.
Platforms can give back thanks to social mining.
Social mining could be a good way to use cryptocurrency because it encourages user participation, gives users more power, and helps the group grow. But the success of social mining depends on whether or not a platform takes into account worries about privacy and manipulation, among other things. A well-designed social mining system that puts fairness, openness, and user ownership at the top of its list of priorities can take advantage of the benefits of cryptocurrency while minimizing the risks.
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