Analysis & Opinions

Facebook Competitor in Latin-America Hits the Road as a New Internet of Value

IOV Labs, the parent company behind RSK Bitcoin smart contract network, and RSK Infrastructure Framework (RIF) has recently acquired Taringa, the major social media platform for Latin America with 30 million users. This acquisition represents an opportunity to quickly bring blockchain technology adoption to a non-technical, mainstream population. Taringa users will have direct incentives to create, curate and edit different types of content and get rewarded with the native $RIF token, which currently has a market cap of over 50 million USD and is traded on different exchanges.

This acquisition is especially important and meaningful for the Latin American market for the following reasons:

1- Blockchain & Crypto Mass Adoption

Blockchain, the distributed ledger technology that underlies cryptocurrencies, is set to transform the world within the next decade. Latin American markets have been struggling for years with weak currencies that set their economies on the path of financial instability (hyperinflations and devaluations). In this context, Latin American citizens are further along in their awareness and understanding of cryptocurrencies, and are more likely to embrace this technology as an alternative financial system compared to other regions of the globe. 

By setting a reward mechanism where Taringa users will profit from creating, editing and curating content, the platform’s user base will have new motivations to get involved and learn about blockchain technology, thus contributing to the mass adoption process. Additionally, technical users such as Bitcoin miners or developers will have incentives to contribute to the ecosystem via merged-mining or by developing or integrating their apps on RSK

2 – Rewarding Users’ Preferences

Taringa has the potential to foster broader adoption and to accelerate the growth of a nascent ‘sharing economy’. As current and new users get involved with the community by creating, sharing and distributing useful content, a new economic model is created with a direct reward mechanism incentivized by and for the community. The more valuable content users create for the community, the greater their rewards. It is a win-win model where the community can play a role in defining the types of content they prefer, and then reward their creators according to the perceived value of the content.

3 – Moving Towards A New Financial System

According to reports from the World Bank, there are billions of people that fall under the category of the unbanked. They are individuals without any kind of access to the traditional financial system (e.g. any type of bank account). Latin America represents a considerable portion of people without any kind of access to credit opportunities.

The RSK tech stack will provide different integrations that will enable Taringa users to utilize the native token ($RIF) to pay for different services and access credit markets without middleman fees. Financial inclusion is now an option when it comes to generating a financial system that empowers those who need it most, while at the same time providing self-sovereign identities to speed up the process.

4 – Privacy Concerns and Data Monetization

Social networks have been plagued with privacy breaches, censorship controversies and a lack of an end-user monetization model. Blockchain is positioned to solve industry key challenges by enabling users to decide where, to whom, and for how much they want to sell their personal information. Additionally, rewarding users on a tokenized economy is one of the most important features to create a new Internet of Value. 

Taringa’s full integration into a blockchain-friendly environment sets the standard to change the paradigm of how people interact with the internet. It represents a stepping stone for a new model of social media networks: incentivized, blockchain-based social media presents unique opportunities in cryptocurrency and increased security for users.

5 – Scalable development of distributed applications (dApps)

The opportunity to actively use different technical solutions in a crypto-friendly environment will enable RSK developers to deploy, test and re-adapt current and future smart contracts solutions. Furthermore, as part of the adoption process, RSK will support all members of the community willing to experiment and provide feedback on the different implementations. 

Finally, by rewarding the mainstream population for learning and experimenting with RSK’s solutions, communities within the Latin American region will be set on a path that promotes active learning, and will be more inclined to utilize blockchain technology.

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