MANAGEMENT II

RESEARCH PAPER

BBA LLB (Hons.) Semester II

TOPIC – “BLOCKCHAIN IN SOCIAL NETWORKING”

Submitted to:
Prof Sweta Chheda

School of Law, NMIMS

(Deemed to be University)

Submitted by:

Tisha Jain

SAP ID- 81022100194

ROLL NO.- E032

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 INDEX

SR.NO TOPICS PG.NO

1. INTRODUCTION 4

2. RESEARCH OBJECTIVES 4

3. RESEARCH QUESTIONS 5

4. RESEARCH METHODOLOGY 5

5. LITERATURE REVIEW 6

6. FINDINGS 5

7. CONCLUSION 9

8. REFERENCES 10

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 ABSTRACT

Purpose- The purpose of this paper is to understand and research about the concept of
Blockchain with respect to social networking.
Methodology- This research mostly relies on secondary data. All sources were collected from
the internet and research databases. The sources include various journals, books, articles,
essays etc.
Findings- The findings of this paper highlights various aspects of Blockchain in social
networking and to analyse its benefits. Furthermore the researcher has explained the working
of blockchain in social media networking.
Practical Implication- This paper provides a preliminary understanding of the Impact of
Blockchain on social media networking. Future research should use alternative methods and
survey the topic.
Originality/Value- This paper presents blockchain in social networking.
Keywords – Blockchain, Social Networking, Social Media
Paper type- Research paper

INTRODUCTION

Technology is at the centre of the twenty-first century. For many users, the social media
platform has operated as an entry point for making connections, sharing content, and social
interactions during the last decade. Customers' data is increasingly being used through getting
insight into their habits, interests, relationships, behaviors, content, and location. People are
more willing to adopt new technology as the necessity for modernity in our daily life grows.
Modern technology has found a place in our daily lives, from operating things with a remote
to issuing orders with voice notes. In the last decade, technologies such as augmented reality
and the Internet of Things have gained traction, and now Blockchain Technology has joined
the herd. A blockchain is a digital database that is shared among computer network nodes. A
blockchain acts as a database, storing information in electronic form. Blockchain technology
is actively affecting a variety of businesses, and social media is one that is likely to be
affected. A Blockchain Social Network (BSN) is a decentralised social media platform that
rewards online user behaviour such as the development, curation, and consumption of user-
generated online content, also known as social networking activities. The blockchain helps
users obtain ownership over their own material. In social networking, a decentralised
approach to blockchain technology protects anonymity and allows for e-transactions, smart
applications, and contracts.

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Blockchain Social Network offers:
i) Governance and transparency; it uses a transparent democratic mechanism that allows
transactions to be validated by several servers and developers.
ii) Monetization of content; no need for a third party to utilise cryptocurrencies.
iii) Data security; guarantees a "safe identity environment."
iv) Because of the decentralised design, single point failure is eliminated.

RESEARCH OBJECTIVES

1. To understand the meaning and features of blockchain.

2. To analyse how blockchain works in social networking .
3. To determine the benefits and challenges of blockchain with respect to social media
plateform.

RESEARCH QUESTIONS

1. What is the meaning and features of Blockchain ?

2. How does blockchain works in social networking?
3. What are the benefits and challenges of blockchain with respect to social media
plateform?

LIMITATION OF THE STUDY

The main findings rely on previous studies and no primary research was research was
conducted due to lack time, the conclusion derived in this study are based on
secondary research which can make the estimates less reliable since the research
paper studied are only a few year old.

RESEARCH METHODOLOGY

The study was doctrinal in nature and therefore the researcher has made use of secondary
sources. Sources like books, journals, articles, case laws, news articles and commentaries
were pursued for the purpose of study. Mainly all the information were collected through
internet, book and research databases resources.

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 REVIEW OF LITERATURE

1. Poongodi, T., Sujatha, R., Sumathi, D., Suresh, P., & Balamurugan, B. (2020)
The social media platform has served as an entry point for establishing connections,
content sharing and social interactions for many users. Cryptocurrencies are used for
secure communication by paying and buying content in peer-to-peer marketing. A
decentralized approach to blockchain technology in social networking ensures privacy
and enables e-commerce, crowdfunding transactions.

2. Dutta, S., & Saini, K. (2020)

This paper gives an overview about the blockchain and its functioning. Various issues
have been highlighted of blockchain in social metworking. The researcher has
explained how blockchain is helpful in securing content on social media. Various
opportunities and future ahead of social media in blockchain has been discussed.

3. Murimi, R. M. (2019)
Social networking sites have given users unprecedented opportunities for the
generation and dissemination of content. The ability to partially or wholly detach user
identity from the content has resulted in unique challenges for content access and
attribution. This paper proposes a framework for secure, trustworthy social
networking that also creates value for user-generated content.

FINDINGS

1.1 MEANING AND FEATURES OF BLOCKCHAIN

A blockchain is a data structure that stores transactional records while maintaining security,
transparency, and decentralisation. You may alternatively think of it as a chain of records
kept in the form of blocks that are not under the jurisdiction of any one authority. A
blockchain is a decentralised ledger that is accessible to anybody on the network. It is
incredibly impossible to modify or alter information after it has been saved on a blockchain.
There are two types of blockchain i.e. Public blockchains and Private Blockchain.
A digital signature verifies the legitimacy of each transaction on the blockchain. The data
saved on the blockchain is tamper-proof and unchangeable thanks to the use of encryption
and digital signatures. Blockchain technology enables all network members to establish a
consensus, also known as agreement. All data saved on a blockchain is digitally recorded and
has a shared history that is accessible to all network users. This eliminates the possibility of
any fraudulent conduct or transaction repetition without the need of a third-party.

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Few blockchain-based social networking sities are:
 Steemit- It is a social media platform that allows anyone to share their ideas. Steemit
is a popular blockchain-based social media website that combines Facebook and
Reddit functionalities. This forces publishers to pay for previously published content
such as blog articles, music, videos, and photos.
 SocialX- Everyone may earn cryptocurrency SOCX token incentives on the SocialX
decentralised blockchain platform. It provides users with a safe place to save their
films, photographs, and groups. It also has a licence management system built in.
Users can retain or sell their images using this functionality.
 Indorse- Indorse is a social network built on the Ethereum blockchain. It's
comparable to LinkedIn and geared for professionals. The talents of a given person
are anonymously verified using blockchain technology. Furthermore, the participants'
reputations may improve as a result of their efforts.
 onG.Social - Both centralised and decentralised social media networks may be easily
controlled using the onG.social blockchain-based social media platform, which also
encourages social participation through bitcoin awards and community building. It
uses Ethereum and Waves Platform as its blockchains. The key feature is that an
individual's material may be disseminated simultaneously across all networks using
this medium. The network has monetized the efforts of the participants.
 Minds- is a decentralised and open source social network where members may earn
crypto tokens in exchange for their efforts. Privacy, freedom of expression, and
openness are all principles that this media is built on. Security and transparency are
given by the Blockchain technology. Furthermore, it develops a mobile-first
commerce infrastructure that provides a pleasant user experience and a clear user
interface.

Features of Blockchain:
 Decentralised- Blockchains are decentralized in nature meaning that no single person
or group holds the authority of the overall network.
 Peer-to-Peer (P2P)- The usage of Blockchain allows two parties to engage in a peer-
to-peer paradigm without the need for a third party. The P2P protocol used by
Blockchain lets all network members to have an identical copy of transactions,
allowing for approval by machine consensus.
 Immutable- The immutability attribute of a blockchain refers to the notion that data
recorded on the blockchain cannot be modified after it has been published.
 Tamper-Proof- Because every alteration in even one single block can be recognised
and handled effortlessly, blockchains are considered tamper-proof.

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 1.2 HOW DOES BLOCKCHAIN WORKS?

In a blockchain network, each block holds some information as well as the hash of the
preceding block. A hash is a one-of-a-kind mathematical code that identifies a certain block.
If the information within the block is changed, the hash of the block will be changed as well.
Blockchain is safe because it connects blocks using unique hash keys.
While transactions happen on a blockchain, nodes on the network validate them. These nodes
are known as miners on the Bitcoin blockchain, and they process and validate transactions on
the network using the proof-of-work principle. Each block must refer to the hash of the block
before it in order for a transaction to be legitimate. Only if the hash is correct will the
transaction take place. If a hacker tries to get into the network and modify the information of
a specific block, the hash associated with that block will be changed as well.
Because the updated hash does not match the original, the breach will be identified. This
assures that the blockchain is unchangeable, as any alteration to the chain of blocks will be
mirrored across the whole network and clearly detectable.
In a nutshell, here's how blockchain facilitates transactions:
1. To provide security and permission, a blockchain network uses public and private
keys to establish a digital signature.
2. After these keys have been used to guarantee authentication, permission is
required.
3. Blockchain enables network participants to do mathematical verification and
achieve an agreement on any given value.
4. The sender uses their private key to make a transfer and broadcasts the transaction
details over the network. A block is formed that contains information like as the
receiver's public key, digital signature, and timestamp.
5. The validation procedure begins once this block of data is disseminated over the
network.
6. To execute the transaction, miners throughout the network begin solving the
mathematical challenge associated with it. The miners must use their processing
capacity to solve this challenge.
7. The miner earns bitcoins as a reward for being the first to solve the riddle. Proof-
of-work mathematics issues are a type of problem like this.
8. The block is time stamped and added to the current blockchain after the majority
of nodes in the network reach a consensus and agree on a common solution.
Money, data, and messages can all be stored in this block.
9. The current copies of blockchain for all nodes in the network are updated once a
new block is added to the chain.

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1.2 BENEFIT OF BLOCKCHAIN IN SOCIAL MEDIA NETWORKING

1. Information and News Verification - Blockchain can handle tasks like identification
and information verification, as well as data verification. The 0xcert protocol is used
to build decentralised apps that let users to authenticate and manage their digital
assets on the blockchain, such as educational credentials or in-game items. This
framework might be used to validate data and information exchanged on the internet.

2. Improvements in User Control Mechanisms - Manipulation of data, disclosure of

data to third parties, and the development of income streams for social media owners
that should not be disclosed with the users whose data has been sold can all lead to
hacking of personal and financial data. All of these operations might be disrupted by
using blockchain. It is up to the users to choose who has access to the information.
Users can also pay a charge to contact marketers and third businesses directly to
exchange information.

3. Crowdfunding and Blockchain Leverages- Social media that operates on the

blockchain might collect funds through crowdfunding. Payments, contract
monitoring, and user authentication may all be accomplished via the blockchain
technology. The information is stored on decentralised ledgers, which guarantee
security and transparency for each transaction, allowing users to crowdfund or sell
their products and services.

4. Expanding and Protecting Freedom of Expression - Blockchain-based solutions to

these platforms eliminate the need for user identities, allowing metadata to be
distributed throughout a single decentralised network without being connected to a
particular individual.

5. In-App Payments: Social media platforms are still experimenting with ways to keep
consumers engaged on their platforms. One way they've started to achieve this aim is
by providing in-app payment options, allowing users to buy pizza, purchase online, or
repay a buddy without ever leaving the social network.

6. Freedom to Access Information: Writing material in oppressive countries is

difficult, but barriers to equitable access to information may be much more harmful to
persons with intellectual limitations. There is no lack of countries employing harsh
measures to limit their citizens' access to the Internet. While some may be startled to
find that China, Ethiopia, Vietnam, and Myanmar are among the top 10 countries with
the strictest Internet restrictions, North Korea should come as no surprise. Despite the
fact that many North Koreans have cellphones, the most majority are connected to
KoryoLink, a practically monopolised telecom operator subject to government
monitoring.

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7. Verified Marketplaces: The potential for marketers and companies to target
audiences with interests and preferences that make them more inclined to act is
priceless. Online markets take numerous forms, but they are frequently packed with
items and services that are of little or no value to the user, with no meaningful way to
verify a seller's claims or the vendors themselves.

CHALLENGES OF BLOCKCHAIN IN SOCIAL NETWORK

 Data control: There is presently no control over the content that is circulated on social
media. Users of the social network would have control over their personal information
and content if they had a personal account. The proprietors of social networks have
total control over what members see and don't see. The decentralised structure of
blockchain eliminates the need for intermediaries, and the material shared on social
media can be readily traced.
 Misuse of Freedom: The dangers of ultimate freedom, as provided by these
uncensored venues, are just as important as the advantages. Allowing users to publish
whatever they want implies that they can also upload content that is potentially
damaging or humiliating to others. Furthermore, the anonymity and reliance on user
votes make it easier for criminals to takeover a site. A user can utilise this to submit
unlawful or nasty information and rally support from other users. Given the
blockchain's inherent immutability, such content cannot be removed or monitored.
 Inadequate Decentralization: Many Blockchain Social Media services fall short of
their decentralisation promises. This is mostly due to the difficulty of attaining
complete decentralisation. Not with today's technical know-how, at least.
 Recently, social network members have been vulnerable to various forms of assaults
that might disclose personal information.
 Because of their centralised form, traditional social networks are extremely vulnerable
to numerous assaults.
 Due to its distributed nature, blockchain reduces the influence of a single entity. The
blockchain keeps track of each transaction and audits it, preventing data manipulation.
 Irrelevant content, such as unwelcome adverts, will not be shown on the designated
platform until the user has regained control of their content in the social network
platform.

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 CONCLUSION

Blockchain technology has the potential to allow large-scale societal and economic
transformation, yet it is still poorly understood. Many social media users are unaware of how
existing methods may damage their privacy and even their earning potential. When
blockchain technology is integrated with social media sites, however, the entire system might
be substantially enhanced for consumers. As a result, a decentralised approach to social
networking can provide improved privacy and the ability to do more with smart apps and
contracts, as well as e-commerce and crowdfunding activities. The paper discusses about how
blockchain technology with virtual credits may be used for peer-to-peer information sharing.
As a result, blockchain technology prevents large-scale rumour dissemination and promotes
the flow of reliable information in social media. A significant growth in social network usage
leads to the development of prospective infrastructure that ensures improved privacy and
security. Smart contracts and applications can be used to conduct additional tasks in the
future. Moreover, It's also feasible that e-commerce and crowdfunding transactions may rise.

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