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Introduction
With the dawn of decentralization and blockchain technology, it was believed that these would eventually come to their own end because there is absolutely no place for such technologies at present.
It was presumed that the world of finance is concrete solid and doesn’t require the applications of decentralization whatsoever. All these years later, it has become evident that not only were such technologies required, but their application has made the world of finance a better place as a whole.
There are a variety of different financial opportunities waiting for you within the crypto market; despite being the most recent addition to the financial market, it continues to perform gracefully and deliver on this promise to make the world of finance a better place for everyone.
Today you will find all kinds of offerings from the crypto market, including cryptocurrencies, non-fungible tokens, exchange-traded funds, and of course, the elements of decentralization and their correlation with Web 3.0. This article will specifically focus on social tokens and their applications while drawing a clear-cut differentiation of these tokens from the governance tokens.
Social tokens actually come from the world of cryptocurrencies, and because of this very fact, these are considered to be the next big thing after the launch of Bitcoin as the flagship cryptocurrency and various other distinguished revelations that have taken place within the crypto market. It might not be completely wrong to say that governance tokens have their own affiliations and similarities to the social tokens, and they are used as the emblem of voting power to a select few for a blockchain entity.
The correspondence of governance tokens is that people are given the right to use these tokens to cast their votes on serious or legal matters for a dedicated crypto project over blockchain technology.
They could dictate how things should work for a decentralized protocol, what kind of changes should be taken into effect and how the offerings of that particular blockchain entity should be revised. Should you care to draw some understanding of social tokens, you wouldn’t be able to enjoy the best of both worlds, which means that you would be able to explore opportunities not only from governance tokens but also from the world of social tokens as well. This is a lucrative opportunity in itself that you shouldn’t let slip from your fingers.
What are Social Tokens?
The social token is exactly what you’re thinking about it might be, a unique type of cryptocurrency that allows the user to have digital ownership of a community, brand, or personal audience. It kind of correlates with the idea of non-fungible tokens, but it is more exclusive in its doing and provides you with full-on rights to whatever element, product, or service the token represents.
Social tokens also reside on blockchain technology, and they have their own dedicated systems which sustain their functioning and operations; when it comes to the operation of social tokens, these act and behave the same way as non-fungible tokens do.
But there is a great difference between non-fungible tokens and social tokens; non-fungible tokens are used as tools for the sake of tokenizing digital assets, while social tokens, on the other hand, are used for the sake of monetizing community leadership or content creation. It lends you a sense of belonging to a particular community or social initiative, whereas a non-fungible token depicts that you hold an asset with an intrinsic value that is part of a particular digital asset in question.
Think of social tokens as a decent and decentralized way of marketing, you are not using websites, applications, or other social media platforms to grow your brand into a vivid community, but you are using the social tokens to do so. With the help of social tokens, you can do all of it and more in a much more appropriate way, whereas you don’t have to meddle with all the lingering fees and other shenanigans of the centralized version of commercializing your content, and you got to do all of that and more with literally no restrictions of any kind lingering over your head.
This is how sophisticated the overall approach to social tokens is; they are vivid and bright in their own doing, they depict a particular part of your brand and then tie your users or community with a sense of belonging but more appropriately, these help your business grow more than you give these tokens credit to do just that.
Role of Social Tokens in Web 3.0
Web 3.0 has been hitting the news and other social media channels as it is presumed to be the very reason we were able to achieve the decentralization of the Internet, and it has become extremely favorable not only within the crypto community but also for the creator economy. This type of Internet doesn’t have any restrictions, legislation, or other such hurdles that can get in the way of a creator, which is why it is favored and appreciated, and recommended over a centralized Web 2.0.
If you are a creator creating digital art, programs or applications, or other such interfaces, then you can benefit greatly from the prospect of social tokens because of their relationship with web 3.0. To be able to comprehend just the type of relation social tokens have been web 3.0 and what are the possibilities and opportunities that you get to have in both, it is important to understand what social tokens can do.
Suppose there is a social media influencer out there who is bent on creating a community of their followers in a decentralized fashion; they can’t send invites to each and every person and then guide them through the process of how to become a member of their community. On the contrary, what they can do is they can create social tokens and then distribute these tokens among their followers, and each token depicts a membership for that particular user within that specific community.
Other than the fact that you get to have a sense of belonging in a community, there are other benefits to holding social tokens. You get to enjoy exclusive benefits that other followers having no social tokens whatsoever won’t be able to, including special access to content or stuff that is access limited and is not randomly available to others who don’t have any social tokens but are only simple followers for that particular influencer.
You might be thinking that it is a charity case with social tokens as this influencer is going to hand those tokens, so you get to become a member of their community; well, that is not entirely the case. The more social tokens this particular influencer sells for a particular fee or dedicated amount of crypto, they will make more money, and at the same time, their community will continue to grow.
Yes, you have to pay a specific fee which could be one time or, given the decision of the influencer, a monthly subscription to become an owner of that particular social token. Social tokens have completely personalized the whole concept of web 3.0 because it has removed centralization and the manipulation of the system by tech giants and other governing bodies, which is why these are extremely popular among the creator community who prefer decentralization and web 3.0 over the centralized Internet.
Web 2.0 has a very tight system when it comes to the privacy of the users; everything you are saying, writing, or reading out there is being recorded in real-time and is somewhat manipulated by those tech giants who call the shots on each and everything.
The data that you are interacting with is mostly owned by those tech companies out there, and they have complete access to it as they can edit, delete, transfer or discard any of it if it suits their needs. Web 3.0 enjoys a more decentralized approach, and a huge part of it is being powered by artificial intelligence and machine learning; with the prospect of throwing blockchain technology into the mix, the users have all the rights to their content, which means that they are in charge rather than getting a tech giant to call the shots on each and every aspect of their content.
Social tokens could work as a bond of surety for content creators doing their work on decentralized Internet that they have every right to commercialize their content in a way they deem fit. Social tokens are going to guard their right to the content they have developed while providing them complete custody of the content rather than having all of this transferred to those big tech giants. Social tokens would ensure that your content remains immutable and could not be tampered with because the encryption of your data takes place through the prospect of blockchain technology.
If you take this whole scenario and shift it over to Web 2.0, you’ll see that the social media influencers or content creators dumping their content on social media sites would have to pay a fair share of their revenue to the main tech company or social media platform they are using for commercialization. This also means that either some or the whole of their content are being shared with those tech giants, and they have custody over it.
You, as an influencer, wouldn’t have the kind of control over the content that you have with centralized Internet because at any given moment, your account could be suspended, or some kind of ban could be imposed on you.
With the help of decentralized Internet and social tokens, content creators can finally have a sigh of relief because they don’t always have to look over their shoulders for their content being manipulated and tempered against their will.
Types of Social Tokens
There are actually two types of social tokens out there, and they are extremely different in terms of how they operate, their sense of operation within the decentralized world, and their overall use case.
Personal Tokens
These are also known as the creator tokens, and they have a very basic purpose, and that is to engage dedicated users into having access to content that will remain personalized to them on behalf of the influencer or the content creator who is giving these tokens away. These are minted by professionals who are at the top of their game when it comes to content creation, and these have a certain value and skill set to them.
If you really begin to fathom the working of personal tokens, then you would know that these are just like money that is exclusive to a particular content creator, which means that you can chip in this token anytime to that particular content creator to avail one of their services or products that they are offering right now.
Artists, public figures, and entrepreneurs are more likely to sell personal tokens to people who can, at a later date, use these tokens to avail whatever services they are presently offering to the community.
It is a great initiative that allows these people to get the word out in a really unique way which the centralized Internet and social media platforms generally lack; on the contrary, here, you are not only protecting your work but are also building a community that is loyal to you and these services that you are offering.
Community Tokens
These tokens are more community-centered, which means that they are created with a proper depiction of community and how it would work, and just what kind of initiatives should be drawn from these kinds of tokens. If an influencer has a sense of community in their mind and they want to build that very thing through their followers, then they will mint the community tokens and hand them out to their dedicated followers to do just that.
It is the type of token that should be approached by anyone who wants access to a special community on the Internet. The token in itself is going to be exclusive to that particular community which means that it can’t be used anywhere else, which generally says a lot about this initiative and it being preferably exclusive to what it believes in.
There is a special catch with community tokens that is not valid for personal tokens; if you give it some thought, you could come up to the conclusion that influencers who have developed their own community-based tokens could use their followers or people to whom they have given these tokens to become a part of a closed group of people, sharing ideas with each other or working on a dedicated project.
This really thins the herd by a great number; not every follower for that particular influencer would actually get to be a part of that particular closed group because to enter or to become a part of that closed group, they actually need access to the community token at first.
Think of these as membership cards that we have in the centralized world. You can’t get access to a private club or anything with closed attribution if you don’t have the membership card on you; the same principle applies to the prospect of community tokens and what creators are doing with these.
Many content creators have come around to the fact that they can make so much more with the idea of tokenization than they could with streamlining their services and advertising them as it is. This allows people to appreciate the overall value of services that the content creator is putting out there. It also means that once they have sold personal or community tokens, they have a much brighter potential to grow their services and themselves as a brand, and they can visually see themselves achieving all their goals in a proper fashion.
Tokenization sincerely puts them out there on the map where others could approach them for their services or products. Another great initiative that is tied with the prospect of these social tokens is that suppose some random follower for that particular influencer has got either a personal or community token on them and, out of the blue, decides to just sell this stuff out. After each and every sale that they have made, the influential could earn a potential percentage for the resale of their token.
Social vs. Governance Tokens
You should not really assume that governance tokens are the same as social tokens because even though both are built on the secure infrastructure of blockchain technology and have multiple similarities but their base operation is completely different from each other.
Social tokens are the emblem of digital ownership and are built on that specific ground, whereas governance tokens are about hierarchy and power, and they allow users to take part in delicate situations and policy-making attributes for different blockchain technologies out there. That is why it is important to sustain the key differences between the two moving forward.
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