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Product Research: Web3 Social Network-Part 1
Explore the riveting journey of Product Research in the dynamic sphere of Decentralized Social Network
Hi! My name is Kevin Wang. During the day, I devote my time and energy to my role as a product manager. However, when night falls, I am the mastermind behind tulsk.io. My mission is to assist you in delving into the world of startups, with a special emphasis on user experience, product management, and personal growth strategies that can elevate your upcoming business. My goal is to provide insights and guidance to entrepreneurs as they traverse the early stages of their business journeys.
Web3 Social Media Advantages:
Decentralized structure offering user data control.
Innovative monetization opportunities through tokens and NFTs.
Membership passes in platforms like Friend.Tech enhancing user engagement and potential earnings.
Exclusive access to premium content fostering community growth.
Challenges and Future Prospects:
Difficulty in achieving mass adoption due to user familiarity with established networks.
Growing interest in decentralized platforms hinting at a potential shift in the social media landscape.
Not only are they pioneering innovators, but our values are aligned with how the internet should be restructured in a way that empowers users, benefits society, and strengthens democracy. - Frank McCourt
Social media plays a vital part in our daily lives. We use them every day to learn something new and to engage with our friends. Moreover, there is a burgeoning creator economy behind social media, where creators can share their knowledge and earn income from their customers.
However, centralized social media like Facebook, Twitter, and Instagram store our data on centralized servers. This has led to a shift towards decentralized social media, setting the stage for a new era of social media. These networks, also known as Web3 social media, differ significantly from traditional Web2 platforms.
Since I couldn't find any comprehensive resources out there, I decided to embody the change I wanted to see in the world and conduct the primary research myself. I have consolidated my findings into a kind of playbook for valuing a successful decentralized social network.
I plan to share this information in bite-sized posts over the coming weeks:
Product Research: Web3 Social Media
Part 1: Deep dive into Web3 Social Media (this post)
Part 2: Key Metrics for Analyzing Decentralized Social Media 🕹
Part 3: Economic, Financial, and Community Growth Metrics and Conclusion 📈
Part 1: Deep dive into Web3 Social Media
What is Web3 Social Media?
Web3 social media refers to social media platforms that are not owned or controlled by a single entity, but rather are built and maintained by a distributed group of users.
How does Decentralization benefit Social Media?
Based on how blockchain works, Web3 social media in fact differ from traditional Web2 platforms in several key ways:
Data and Content Storage: Web3 social media stores user data on blockchain and independent servers, enhancing security, privacy, and protection against censorship and data breaches.
Monetization: Utilizes fungible and non-fungible tokens (NFTs) to create new avenues for content monetization, allowing users to earn from their posts and support platform growth.
User Control: Empowers users with greater control over their data and the platform, facilitating personalized rules for data usage and monetization, backed by the reliability of blockchain and smart contracts.
Web3 data storage v.s. Traditional cloud storage
Web3 data storage represents a significant shift towards a more user-centric and secure digital landscape. It decentralizes data management, offering greater security, privacy, and cost-effectiveness compared to traditional cloud storage.
In the real world, running a decentralized social network involves many requirements that are difficult to meet simultaneously. The messages created must be processed in real-time and often at high volumes.
Therefore, a protocol called Farcaster has devised a hybrid architecture that combines on-chain and off-chain systems.
Monetization and user control in Web3 Social Media
Web3 social media platforms often utilize fungible and non-fungible tokens (NFTs) as new ways to monetize content.
Here are some examples of how this works:
Web3 social media platforms use NFTs as membership passes, allowing users to access exclusive content and features. This creates a sense of exclusivity and scarcity, driving up demand for NFTs and allowing creators to monetize their content more effectively.
Lens Protocol: This Web3-native decentralized application enables users to securely store and share personal data across multiple networks without centralized control. It employs blockchain technology to ensure maximum protection and privacy for its users, supporting Web3 wallets like Metamask for easy access to digital assets.
Friend.Tech: Utilizes membership passes to monetize, incentivizing users to grow their network and engage actively, which in turn boosts their net worth on the platform and generates revenue through access to exclusive content and features.
Platforms like Friend.Tech are at the forefront of a transformative wave in social engagement, emphasizing user autonomy, privacy, and a decentralized approach. These platforms stand as vibrant alternatives to conventional Web2 social media platforms, facilitating enriched connections, self-expression, and rewarding experiences in a transparent and empowering digital space.
Total Protocol Fees: The amassed fees, amounting to 6,356.837 ETH or $10,485,209 USD, denote the substantial revenue accrued by the platform through diverse transactions and activities.
Cumulative Transactions: The platform boasts nearly 6 million transactions (specifically 5,939,524), indicating a vibrant user engagement and activity level on the platform.
Total Inflow: The aggregate inflow, quantified at 127,156.521 ETH or $209,736,523 USD, marks the considerable volume of assets that have been funneled into the platform.
Conclusion: Growth Amidst Challenges
Web3 social networks, despite their benefits, struggle to attract a large user base due to the complexity and unfamiliarity compared to mainstream platforms. However, increasing dissatisfaction with centralized networks' issues, like data misuse and biased moderation, is gradually steering users towards decentralized alternatives, indicating a potential shift in the social media paradigm.
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