Web3 revolution: How blockchain is changing social networks and the music industry

At the GameChanger conference in Zagreb, in hall 3, whose theme was web3 and blockchain, a panel titled Decentralized Social Media: The Role of Blockchain Technology was held. The panelists were Kristijan Škarica, co-founder of Gepek, Strahinja Vukoičić, co-founder of Moonstruck, and Marko Borovina, co-founder and COO of Ceres Blockchain Solutions, with Stipe Plejić, executive director of Endemic, moderating the panel. They discussed the potential of blockchain technology to improve security and transparency in social networks and the challenges faced by decentralized platforms.

Škarica began the discussion by emphasizing that he currently does not see any decentralized social network that has become mainstream or gained wider popularity outside the crypto community. Networks such as Friend.tech and Lens Protocol were mentioned as examples, but neither has achieved long-term success or attracted a broader audience outside the crypto space.

All panelists agreed that the biggest challenge for decentralized social networks is user experience (UX). Vukoičić emphasized that UX is a chronic problem for the entire web3 sector, noting that handling wallets, managing private keys, and security are often confusing and impractical for the average user. These technical challenges represent the greatest barrier to the mass adoption of web3 platforms.

The question was also raised about how much privacy really means to users. In this context, Telegram was mentioned, an application that has emphasized privacy from the very beginning. However, the situation changed when its founder, Pavel Durov, was arrested, and the company decided to start handing over data to governments and state bodies. Although Telegram is not a decentralized platform, it has attracted attention due to its focus on privacy.

Škarica pointed out that while he appreciates that Telegram has not shared user data, he understands the moral dilemma the company faces in combating terrorism, fraud, and other abuses. However, the panelists concluded that it is important to distinguish between decentralization and privacy. Telegram, although a privacy-focused application, operates similarly to other large tech companies, and privacy has been their key ‘use case’.

The panelists agreed that decentralized social networks, like Telegram, have the potential to attract people to the web3 world, but they still cannot retain them long-term. Although blockchain and web3 have existed for about a decade, they believe the sector is still in its early stages of development, with much untapped potential.

The conclusion is that decentralized networks and blockchain technology are very promising, but they face a long road to wider adoption. Only when challenges related to user experience and technological complexity are resolved can web3 social networks have a chance to become the new standard in the world of digital communication.

At another panel titled Music NFT, Copyrights, and Royalties, experts from the music industry and lawyers gathered to discuss the potential and challenges of applying NFT technology in music. The panelists were Marijana Šarolić Robić, vice president and legal expert at Cro startup, Vlaho Hrdalo, president of UBIK, Tin Šarić, co-founder of BitX.hr, and Želimir Babogredac, executive director of Croatia Records.

NFTs in the music industry are currently a niche topic, Šarić pointed out, who believes that it is technically very simple to put a song on the blockchain, but the biggest problems arise after its release. Blockchain technology offers numerous advantages, such as fractionalizing ownership of songs, allowing fans to become co-owners of musical works and earn royalties.

Babogredac, with extensive experience in the music industry, reminded of the parallel with the digitization process, which began in the music industry in the late 90s. In his opinion, digitization was not just a change of format but a whole complex process, which could serve as a lesson for adopting blockchain technology in this sector.

Moderator Plejić asked about the current status of the NFT sector, which currently seems to be ‘at the bottom’. He asked the panelists if they believe the technology will return to the spotlight. Šarić responded that NFT adoption in gaming and real-world assets (RWA) is currently at its highest ever, while the hype around digital collectibles, once popular ‘cards’, has significantly decreased. NFTs as collectibles are no longer as attractive, but the technology remains promising in specific sectors.

Babogredac offered an interesting perspective, asking whether there is enough talent and motivation in Croatia for the application of NFTs in the music industry. While the technology is young, it is already present in the sectors of art, real estate, and music, but the question is how it will develop further.

One of the key issues in applying NFTs, especially in Europe, is regulation. Šarolić Robić and Hrdalo, both lawyers, pointed out that even they, who are daily involved in regulatory issues, encounter difficulties in understanding the complex EU regulations. There are too many layers and ambiguities, which slows down the adoption of new technologies like blockchain and NFTs in the industry.

Although the NFT sector is currently in a phase of transformation, the technology offers great opportunities for musicians and fans, especially in the domain of ownership and royalties. However, the panelists agreed that a long road lies ahead, with numerous challenges in terms of user experience, regulation, and mass adoption. Nevertheless, the potential that blockchain brings to the music industry, especially through NFTs, could significantly change the way we consume and participate in music rights in the future.