SocialFi, otherwise known as social finance, is essentially a term representing a social network connecting with decentralized finance (DeFi).
However, not too many people, even those within the crypto space, are quite clear about what SocialF crypto is and how it works. As such, today, we will be diving into everything users need to know and how all of this connects with crypto payments.
- SocialFi combines Decentralized Finance (DeFi) with social media and aims to offer a platform on top of Web3 that leverages a decentralized approach toward managing, creating, and owning data.
- Each user will be able to create content and can have full control as well as freedom as to how their data is used.
- SocialFi puts an emphasis on ownership, and self-monetization, where funds can be transferred directly from one user to another user, and this way, creatives have a lot more freedom as to what kind of content they can monetize.
- NOWPayments is a cryptocurrency payments gateway solution that will enable any user or business the ability to essentially send or receive cryptocurrency payments in the form of over 150 different cryptocurrencies.
What is SocialFi?
SocialFi is the next step when it comes to the development of blockchain-based social media. This is a representation of social media platforms that can take advantage of the numerous benefits offered by blockchain technology, where they add non-fungible tokens (NFTs) and DeFi services within their lineup of options.
SocialFi platforms will also enable individuals to own their data and have full privacy over how it is used. They can also vote on community proposals and decide how the future of the specific social media network in question is shaped. Most platforms will also feature their own native cryptocurrency.
How SocialFi and crypto payments are related
Within most SocialFi platforms, users are provided with the opportunity to directly transfer cryptocurrency and conduct payments to other users within the platform without the need to resort to a third party to conduct this for them, such as the case might be when traditional social media platforms are utilized.
This means users of SocialFi can leverage the power of cryptocurrency payments and receive them quickly, with low transaction fees, without needing to worry about the length of time or the security surrounding their transfer, as it is all based on top of blockchain technology.
SocialFi can deliver a much better experience in terms of payments when compared to Web2, and its decentralized nature will ensure there is no censorship or geographical limitations towards rewarding users with tokenization.
How SocialFi will change crypto payment
SocialFi can change the way people monetize their content through social media platforms. On traditional platforms, advertisements are played to people, and after that, the social media platform gets a cut and delivers a cut to the creators. There is also no direct way to send crypto or FIAT currencies on most centralized social media platforms.
This has changed within SocialFi, as now, users will have many other ways through which they can tokenize and monetize their content directly and receive cryptocurrencies directly to their cryptocurrency wallets instead of relying on a third-party service to conduct this for them.
Creators can directly sell images or music in the form of NFTs on the platform, get donations in crypto directly, and participate within the decentralized governance model enabled by the platform’s native cryptocurrency.
How can I accept crypto payments?
If any user wants to accept cryptocurrency payments on just about any SocialFi platform, either one created today or at some point in the future, users will need to utilize a solid solution to keep their crypto as safe as possible.
Users can, for example, take advantage of the power NOWPayments provides.
NOWPayments is a cryptocurrency payment gateway that enables businesses or users to accept over 150 cryptocurrencies.
If users want to accept crypto through this cryptocurrency payment gateway, this is what they need to do, step by step.
- Step 1: Visit the official NOWPayments Website and create an account. If an account already exists, just log in to the account.
- Step 2: Select the Payout Wallet. Here, each user will need to navigate to the Settings tab, and afterwards, they can click on the Payment Settings button. Here, they will be provided with the opportunity to add a Payout wallet.
If users want to add the wallet, they need to click on “Add another wallet” and select the preferred cryptocurrency. NOWPayments supports over 150 cryptocurrencies, so all users will have a lot of variety in this aspect.
- Step 3: The API Key Generation process. Here, each user will be required to generate an API key. To do this, all they have to do is click on the “add a new key” button, and then they can visit the API documentation to see how it can be connected to any platform they might use.
We covered just about everything you need to know when it comes to SocialFi and how it connects with cryptocurrency payments as well as Decentralized Finance (DeFi).
The next time everyone hears the word “SocialFi”, they will now know its meaning, and its connection with cryptocurrency payments.
By leveraging the power of NOWPayments, any user can utilize cryptocurrency payments across any platform and can take advantage of a wide variety of over 150 cryptocurrencies to pick from.
SocialFi platforms will shape the future of how we utilize social media, so keeping up with the pace and staying ahead is essential for any enthusiast.