Reddit Co-Founder To Invest $100 Million In Social Media On Solana

Building a new startup has become relatively easy in today’s world. Also, you can complete its registration and most of the work online in just a few minutes. However, what matters is conceiving an idea that would become the next big thing and disrupt the tech sector. Several instances exist where founders of popular tech and social media companies reinvest their money into another company. This happens when they estimate the viability of their investment as potentially successful.

Recently, prominent US investor Alexis Ohanian, the co-founder of social media platform Reddit, went into a $100 million partnership with Solana Labs. The latter is a blockchain company with one of the fastest public ledgers in the crypto world.

In this article, we look closer at what this partnership means for the crypto space and the future of social media.

All About Solana Labs

If you hear about a $100 million investment deal, you may wonder why a company chooses to make such a significant investment. However, in this case, the answer may not surprise you. That’s because the company in question is Solana Labs, one of the biggest blockchain companies in the world.

The Solana blockchain is highly innovative and its design sustains a high-performance ledger. Furthermore, it can process up to 710,000 transactions per second on a 1-gigabit network.

Solana is a decentralized and scalable blockchain that companies and individuals can use to develop high-performance applications. Currently, it is one of the fastest blockchains in the world and the fastest-growing ecosystem in cryptocurrency. Moreover, it can perform millions of transactions in a short time with high security and performance.

Transaction Speed

The best thing about Solana is its speed, as it maintains 400 millisecond block times to allow faster completion of transactions and more transactions to be processed in a shorter time. As you scale up your hardware, it will also enhance the speed. Moreover, cost-effectiveness is another huge benefit that you can reap from using the Solana blockchain.

Last but not least, Solana is a decentralized network, which makes it accessible for companies to run their applications and store their data. This also means that it will process all information securely, and developers will use it for their applications.

The Purpose of the $100 Million Investment

The partnership between Seven Seven Six and Solana Ventures has recently surfaced online. Those to announce it were Reddit co-founder Alexis Ohanian and Solana Labs co-founder Raj Gokal. The purpose of this investment is for both parties to work together on Web 3.0 technology and social media.

Both Ohanian and Gokal made the announcement at the annual Solana Breakpoint conference in Portugal. During the meeting, they revealed that the partnership would be worth $100 million. Also, they aim to develop a decentralized version of social media on the Solana blockchain. Recently, the CEO of a FinTech startup recognized the massive potential of a blockchain-based social media.

About Web 3.0 Technology

Concerning the Web 3.0 social media technology, the tech moguls stated that people need to move away from the centralized social media landscape. Gokal added that he needs to “be free from centralized social media” and wants to get off Twitter.

The announcement comes a few days after Facebook founder Mark Zuckerberg rebranded the company into Meta. Unfortunately, even though the rebrand received global praises, it doesn’t protect the company from bad press.

Thanks to the leaked documents by whistleblower Frances Haugen, and the company’s inability to handle the spread of COVID-19 misinformation, people now know that Facebook isn’t simply a place where people are connected. Leaked documents called the ‘Facebook Files’ clearly show that the company was aware that Instagram has a toxic effect on teenagers.

A Brief History of Web 3.0

Web 3.0 is preceded by Web 2.0, which was coined in 1999 and represented a shift from static web pages to dynamic and user-created content, and it also brought us the cloud and social media and mobile apps. Unfortunately, however, it is now a representation of everything wrong with social media platforms like Facebook and Instagram.

In contrast, Web 3.0 aims to bring a decentralized and revolutionary social media landscape based solely on the high-performance Solana blockchain. It also ensures decentralized data networks that a company or entity won’t control. Therefore, these companies won’t manipulate or leverage user data for their gain or malicious intent.

Web 3.0 and Decentralization

Decentralization has already become popular with the advent of cryptocurrencies like Bitcoin, Altcoin, Ethereum, and its underlying blockchain architecture. The demand for decentralized social media arose when it banned apps like Facebook, Instagram, YouTube, WeChat, TikTok, and several others in certain parts of the world. Users argued that governments shouldn’t prohibit free speech and that it snatched their rights from them.

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Judging from all of the recent events and incidents in the world and the role of social media in them, there is no denying that social media decentralization will take power away from the hands of social media companies who have access to the data of billions of users. So let’s wait and see how Alexis Ohanian and Solana work together to build the Web 3.0 technology.

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