3rd parties have been tried, again, and again, and again. They have all failed. The simple fact is that we have a binary political system in this country. Its always been that way and only the names have changed. Republicans used to be Tories and then an argument over slavery happened and Republicans that didn't support slavery started the Republicans and the Tories didn't have enough members left to support their party.
That can happen to the Democrats too. If the democratic socialist feel they have enough folks on their side they can try to recreate the Democratic party. If not then they better stick with the Democrats as it is, right now, the current party of resistance. A Binary system means there are two sides and folks gotta decide what side they are on. If, for instance, the Democratic Socialists determine that they are strong enough to do it on their own, and they are wrong, they will have given the election to the other side. Same holds true with the Republicans.
The trick, for both sides is to fully explain what each side believes and supports. What now happens is the both sides try to demonize the other side. The real problem is twofold. The first problem are people who support one side over the other and have the big bucks to make their points. The second problem are the lies told, by either side, to make their point. Oh, there is a third problem - that group of voters who believe in not only their side but all the lies about the other side. All this, in turn, boils down to big bucks and lies, and closed minds and lies. The unfortunate truth is that when the supremes allowed big bucks into politics everything became skewed. Suddenly the Republicans, favored by the upper 1% could simply out spend the other side which also meant their lies could be made more believable, their promises better sounding, etc. This, in turn, forced the Democrats to spend much of their time trying to get money so that they could fight back. Over time, I think, the Dems became more obsessed with money than politics and they suddenly lost most of the states as well as congress and the presidency.
I am not sure there is any way to deal with the lies. This becomes especially true give the number of folks, on either side, that refuse to hear anything bad about 'their' side and buy ALL the baloney of 'their' side. The money, however, can be fixed. The first thing is for Congress including the senate, passes a bill that states that, for political purposes, Money is not speech and speech is not money. The other part is to pass legislation that also states, for political or tax purposes - corporations are not the same as a single human being. I think this is within the purview of congress and is probably doable. Then the only thing left to do is to educate the electorate (I wish us all luck with that one).
Insfar as voting is concerned every ballot needs a "none of the above" option. The other thing is to make voting mandatory. Incidentally, mandatory voting does not mean that people must vote on something but they do have to submit a ballot, even if blank.