Docking SocialFi into Blockchain: The WOM Protocol Example

In many ways SocialFi has become the lighthouse of social media, guiding Big Tech ships lost in a stormy sea of privacy concerns, algorithmic bias and one-way profiteering back towards dry land. In the brave new world of Web3, with its promise of blockchain technology and potential to create more secure, transparent, and decentralized infrastructures, SocialFi has become a buoyant mix of social networks and finance built to benefit all of its stakeholders. 

SocialFi platforms are the pioneers of the creator economy, enabling users to not only control their data, but tokenize their content and social influence, which is leading to fairer profit sharing for creators, and platforms, while opening up access to valuable user-generated content for advertisers and brands. The fact that Meta-owned platforms, and now X (Twitter) have even begun experimenting with content creator programs and ad revenue sharing models is likely thanks to fierce competition from the SocialFi sector. 

So let’s take a deeper dive into SocialFi by way of the WOM Protocol to understand how social and decentralized technologies are converging to drive change through traditional social media. We’ll also stop to explore why the journey is far from smooth sailing.

WOM Protocol: Making Waves in SocialFi

It took one year of extensive research before the WOM Protocol first launched into the SocialFi seas back in 2018. By the end of the following year the team had begun building the protocol’s underlying technology, and this was integrated into the first pilot app, YEAY, in 2020, in order to educate and onboard the consumer crowd over to crypto. However, it wasn’t until the end of 2021, when the protocol was integrated into crypto-native app, BULLZ, that WOM started to see real growth. Now that WOM has been integrated into BULLZ for almost two years, the project has truly begun to see traction. The past year has proven to be particularly pivotal for WOM, seeing a staggering 59 million transactions, and averaging more than 200,000 transactions per day – within eight months WOM has doubled the volume of transactions compared with the previous year. These numbers speak to the platform's growing popularity and its ability to facilitate meaningful interactions between users.

However, despite its successes, WOM Protocol still faces a crucial challenge: transitioning from a centralized database to a blockchain-based infrastructure. This move is essential for SocialFi protocols like WOM to fully realize their potential. But why is this transition necessary, and what are the hurdles?

Why Blockchain is Essential for SocialFi

• Decentralization: Blockchain technology offers a decentralized ledger that ensures transparency and trust among participants. It removes the need for a centralized authority, making it ideal for SocialFi protocols where trust is paramount.

• Security: Blockchains provide robust security features through cryptographic techniques. This helps protect user data and transactions from cyber threats, enhancing the overall integrity of the protocol layer.

• Transparency: Transactions on a blockchain are publicly recorded, creating a transparent environment where users can verify and trace their activities, fostering trust.

• Immutable Records: Once data is added to the blockchain, it becomes immutable. This prevents unauthorized alterations or deletions, ensuring data integrity.

• Tokenization: Blockchain allows the creation of native tokens, enabling innovative incentive models and monetization strategies within SocialFi protocols.

WOM Protocol's Multichain Approach: The Quest for the Right Infrastructure

WOM Protocol embarked on a journey to find the right blockchain infrastructure to migrate to, recognizing that this task is no easy feat. The search for an ideal solution, one that is robust, scalable, and cost-effective, is not unique to WOM Protocol. Many SocialFi use cases face similar challenges.

SocialFi platforms, like WOM Protocol, often involve numerous mini engagement factors that result in very small transactions. These microtransactions are usually not worth the cost associated with traditional payments or transfers. Hence, a multichain approach is essential to provide a robust, scalable, and cost-efficient solution that can accommodate these unique characteristics of SocialFi.

WOM Protocol envisions a future where its infrastructure seamlessly interacts with a wide array of blockchains, ensuring compatibility with different ecosystems. This approach not only enhances the user experience but also broadens the adoption of the protocol layer.

The Role of BULLZ: Fueling Growth

WOM Protocol's remarkable growth is in part attributable to the growing popularity of its flagship BULLZ app. BULLZ, a platform for Web3 video content creators, has provided a space for creators to thrive and engage with their audiences in novel ways. The success of BULLZ has driven increased transactions on the WOM Protocol, reflecting the rising interest in decentralized social interactions.

Validator Nodes and Fair Rewards

Yet, WOM Protocol's transactions are not solely driven by content creators and users. Validator nodes play a crucial role by authenticating content, contributing to the protocol's overall integrity. Even platforms like BULLZ receive their fair rewards on a daily basis for delivering creators, audiences, and interfaces for engagement. This incentivization model ensures that all participants in the ecosystem are fairly compensated for their contributions.

Monetizing Opportunities for All

WOM Protocol's success with BULLZ highlights its potential as a new way to monetize for a broader spectrum of creators, authenticators, and platforms. As more platforms integrate WOM Protocol, the ecosystem grows, creating a network effect where everyone benefits. The protocol's commitment to providing opportunities for all stakeholders is a testament to its inclusive vision for the future of SocialFi.

Impressive Growth: A Glimpse into the Future

It's worth acknowledging WOM Protocol's remarkable growth in 2023. The protocol has seen an astonishing increase in daily transactions, nearly doubling the number of transactions in just eight months compared to the entire 12 months of 2022. This growth underscores the growing interest in decentralized social interactions and demonstrates WOM Protocol's ability to adapt and scale in response to user demand.

On the Horizon

As we sail further into the seas of SocialFi, it's evident that blockchain technology, with its decentralization, security, transparency, and tokenization capabilities, plays a pivotal role for the future of social media. WOM Protocol serves as a prime example of a SocialFi protocol layer poised for a blockchain-based transformation. With its impressive growth, commitment to inclusivity, and unique role in the BULLZ ecosystem, WOM Protocol is charting a path toward a more decentralized and inclusive digital landscape, where users can engage freely and securely. The future of SocialFi looks promising, and WOM Protocol is at the forefront of this exciting voyage.