Research Summary
The report discusses the potential of decentralized social media, outlining four key reasons why it is poised for growth. The author, Drew Beechler, CEO and founder of Holder, a marketing tech and messaging platform for web3 brands and creators, presents a compelling case for the adoption of decentralized social media platforms.
Key Takeaways
The Power of On-Chain Social Graphs
- Mapping Relationships: The report highlights the value of on-chain social graphs, which allow for the mapping of relationships, influence, and other social data based on an individual’s wallet address and on-chain interactions. This provides a more personalized and contextualized user experience.
- Overcoming the Cold Start Problem: On-chain social graphs enable builders to circumvent the “cold start problem” that many social networks and marketplaces face, as the user’s graph is pre-populated based on their existing interactions and shared experiences.
Programmatic Incentives and Monetization
- Shared Revenue Streams: The report emphasizes the potential of web3 social platforms to program incentives and monetization in easier ways. This includes shared revenue streams and permissionless monetization, which allow users to share in the upside of the platform’s usage and growth.
- Creator-Based Monetization: The focus on creator-based monetization and revenue sharing has grown significantly among major centralized social media players. In a blockchain-based world, this is unique as the user account is tied directly to a wallet address and financial instrument (tokens).
Permissionless Platforms
- Interoperable Third-Party Clients: Most prominent web3 social protocols have been built with permissionless in mind from day one. This allows for unique features and ecosystem opportunities, such as interoperable third-party clients, enabling anyone to build their own client on top of existing protocols.
Interoperable Content and Data
- Building Ecosystems and Communities: The report notes that not only can anyone create their own client and product on top of the social graph, but entire ecosystems, communities, and tools are being built that leverage and support the protocol itself, using interoperable data.
Actionable Insights
- Investigate the Potential of On-Chain Social Graphs: Businesses and developers should explore the potential of on-chain social graphs for creating more personalized and contextualized user experiences.
- Consider Programmatic Incentives and Monetization: Companies should consider the potential of programmatic incentives and monetization in web3 social platforms, including shared revenue streams and permissionless monetization.
- Explore the Benefits of Permissionless Platforms: Developers should investigate the benefits of building on permissionless platforms, which allow for unique features and ecosystem opportunities.
- Utilize Interoperable Content and Data: Businesses should consider how they can leverage interoperable content and data to build ecosystems, communities, and tools that support the protocol itself.
