Research Summary
The report provides an in-depth analysis of DeSo (Decentralized Social) Blockchain, a platform designed to decentralize social media. It highlights DeSo’s mission, key features, cost-effectiveness, and potential for growth. The report also discusses the issues with centralized social media platforms and how DeSo aims to address them.
Key Takeaways
DeSo’s Mission and Features
- Decentralizing Social Media: DeSo aims to decentralize social media platforms, which are currently controlled by a few corporations. It provides a censorship-resistant layer-1 blockchain for storage-heavy apps, allowing users to own their content in a decentralized manner.
- Specialized for Social Applications: Unlike general-purpose blockchains, DeSo is designed specifically for social-oriented features. It offers high scalability and cost-effectiveness for on-chain storage, addressing the different scaling needs of “posts per second” compared to “transactions per second.”
Issues with Centralized Social Media
- Monetization Disparities: The report highlights the disproportionate monetization on social media platforms, where a small number of companies control the content and interactions. These platforms take significant cuts from creator earnings, impacting their income.
- Need for Decentralization: The centralization of social media platforms has led to issues like censorship and data control. DeSo aims to address these issues by enabling a decentralized social media ecosystem where users own their content and social graphs.
DeSo’s Cost-Effectiveness
- Cost-Effective On-Chain Storage: DeSo offers cost-effective on-chain storage, making it feasible to host decentralized versions of platforms like Twitter or OnlyFans. Storing 1GB of on-chain state on DeSo costs approximately $80, significantly cheaper than other blockchains.
- Designed for Infinite-State Applications: Unlike Ethereum and Solana, which are general-purpose and finite-state blockchains, DeSo is designed specifically for infinite-state applications like social networks, offering scalability and affordability.
DeSo’s Growth Potential
- Strong Industry Support: DeSo has raised $200M from prominent investors like Coinbase, a16z, Sequoia, and Polychain. It has a market cap of $370M, suggesting potential for substantial growth in a bullish market.
- Increasing User Base: DeSo boasts a significant user base with millions of transactions and posts. It also has a 1-second finality time for transactions, which cost less than one ten-thousandth of a cent, and a limited, deflationary supply with the upcoming Revolution PoS.
Actionable Insights
- Explore DeSo’s Potential: Given DeSo’s mission to decentralize social media and its cost-effective on-chain storage, it could be worthwhile to explore its potential in transforming the social media landscape.
- Consider DeSo’s Scalability: DeSo’s design for infinite-state applications offers high scalability, making it a potential platform for developing decentralized social networks and other consumer apps.
- Monitor DeSo’s Growth: With strong industry support and a growing user base, DeSo shows potential for substantial growth. Monitoring its progress could provide insights into the future of decentralized social media.
