A recent article on Forbes by Yoav Vilner suggested that the blockchain technology can solve all problems that Snapchat is currently facing.
As Yoav Vilner reported, “Reports of the downfall of social media giant and pioneer, Snap are coming at a rapid pace, with the company’s stock price declining by over 25% in less than one month.”
The issues of Snapchat have escalated and saw a loss of nearly three million users in mid-2018, and the company stocks have also dropped significantly. Snapchat is not supported by any powerhouse parent company like YouTube and Instagram even though the users have the stance of “creators” here too. Moreover, the users of Snapchat have been complaining for a long time about lack of robust analytics and other features that offer insight on audience demographics. Also, Snapchat is facing tough competition from other technology giants and social media. Yoav Vilner reports that Snapchat is currently losing expert employees throughout its business.
Questions were also raised about the investor structure of Snapchat. Like other social media giants, Snapchat is also going through a censorship battle where Yaser Bishr, Al-Jazeera’s executive director of digital had questioned the credibility of a U.S.-based social networking company of denying the constitutional rights of others after Snapchat had blocked the Al-Jazeera account in several Gulf nations. Vilner suggested that the blockchain technology has the possibility of becoming the solution to all the present issues of the company.
Blockchain Technology Helping out Snapchat
The censorship put into action by the social media giants like Snapchat shows that these companies have gained enough power to control the users. It is surely a matter of concern as free speech will be chained. The blockchain technology can make a platform open source and peer-to-peer based as everything is recorded on the blocks that is difficult to tamper with. Vilner thus suggested the introduction of blockchain technology in the mechanism of Snapchat.
The newly evolved social networks that are blockchain-based offer a decentralized governance model. This means that there is no central authority of power and the users can freely express their thoughts. The decisions will be taken by the entire network, that is, the participants. According to the Managing Partner of HEX Capital Group, Alessio Quaglini, the decentralized platforms will help in stabilizing the system, reducing structural asymmetries. The system will also provide monetary incentives to the users unlike the current system of the social networks.
Blockchain technology also offers security, encryption and brings in a massive change in the traditional systems. When it comes to social networks like Snapchat and YouTube, there are also the issues of intellectual property rights that often make others’ works seem insignificant. The open-source decentralized platform will allow the users to store their creative work onto the blocks that will be encrypted. So, if another person “reposts” it, the platform will credit the original creator only. Copyright issues can be solved this way, a major issue currently in the social networking system.