After NFT, social tokens are the latest hype in the crypto space. How does Berlin, the blockchain capital of Germany, hold its own in the still young area?
The term “social token” is currently on everyone’s lips and it seems to be the next big hype in the blockchain world after the NFT. The terms “personal tokens”, “social currency”, “community coins” or “creator coins” are also used as synonyms on the internet. Despite the great interest, no clear definition of social tokens can be found. However, various sources agree that the tokens can represent the reputation of a brand, an individual or a community. However, there is disagreement about whether social tokens should be classified as cryptocurrency, as NFT or as digital assets.
The most famous social token project is called “Whale”And already has a market capitalization of over $ 100 million.
Are social tokens NFT?
The term social token is often used in conjunction with the term NFT. NFT – i.e. non-fungible tokens – are typically based on the ERC-721 or the ERC-1155 standard. Contrary to popular understanding, however, many of the social tokens are classic ERC 20 tokens. An example of such an ERC-20 social token is also the social token from the Whale project mentioned above. How on Etherscan can be seen, the WHALE tokens are based on the ERC-20 protocol.
Social tokens in Berlin
The topic of social tokens has also already arrived in Germany’s blockchain capital. Under the name of Smart Places Protocol a Berlin startup introduces a decentralized network that enables all participants to create so-called “value communities” or “smart places”. Interestingly, the focus of the smart places is on enabling spontaneous and real physical, interpersonal interactions and not just on virtual likes or comments.
The purpose and goal of Smart Places Protocol is to “solve” the real problems in real life and to connect people. Björn Heinzle, COO and Co-Founder of Smart Places Protocol, explains to us in an interview how this solution can be imagined:
For example, we all know the dilemma: You are in the park, want to play volleyball, but there are only three players? So how is the fourth player supposed to join when you don’t know anyone in the park? Nobody does ask around in the park. And this is exactly where Smart Places Protocol should help: The digital world is becoming an aid! By doing his own thing, posting his status within a radius of 300 meters – for example the park – the user comes into contact with other users and enables them to join the volleyball team. The ‘real’ problem in the real world is thus solved by connecting the users via the digital world and transferred to the real world.
Björn Heinzle, COO and Co-Founder Smart Places Protocol
There are no limits to the user. In addition to the example mentioned, a user could also look for a tutor who would explain the subject matter to him immediately after the lecture. Likewise, a newcomer might look for new acquaintances in a strange city.
The Smart Places are intended to counteract the increasing alienation of our society and promote spontaneous social interactions. In an interview, Hung Luu – CEO and Founder of Smart Places Protocol – calls this process “instant socializing”.
All of these social interactions are incentivized by tokens. The associated social token is called “Smartees©”And this is also expected to be an ERC 20 token. This becomes a social token not only because it promotes social interactions between people. Because the community is additionally incentivized by participating directly in the income and the development of the economic cycle. So if, for example, a budget of tokens is provided by the city of Berlin and these are used as an incentive to clean up your parks, everyone involved benefits.
Another company that uses a token that could be classified as a “social token” is WOM Protocol. The CEO and founder is Melanie Mohr, a real star on the Berlin blockchain scene. In contrast to the Smart Places Protocol, the WOM Protocol focuses on virtual interactions and uses their token to incentivize content creators to publish authentic content. Network participants check the shared content for certain criteria such as. Creativity and authenticity. You will be rewarded for your work with WOM tokens.
If the content does not meet the criteria, the content creator must hand in WOM tokens. This is intended to encourage content creators not to publish content for financial reasons, but only to advertise products that they really stand behind.
As is so often the case, the Berlin location is positioning itself as a driver of a new area of application for blockchain technology. Projects such as Smart Places Protocol are still being prepared for your go-live, but in the foreseeable future we will be able to interact with your social applications.
About BerChain eV
BerChain eV is a non-profit, member-run association based in Berlin, which connects and promotes the Berlin blockchain community from the entire blockchain ecosystem and beyond and positions Berlin as the global blockchain capital. BerChain enables science and research activities, education and training around the topic of blockchain and thereby promotes Berlin’s local blockchain ecosystem. In this way, BerChain wants to create a unique interdisciplinary environment and accelerate the growth of the local blockchain community.
BerChain eV and BTC-ECHO GmbH have been media partners since March 2021.