Decentralized social networks have a retention problem, say execs

2 executives in the decentralized social (DeSo) media space told Cointelegraph that as much as 99% of users moving into DeSo for the first time will end up giving up, either due to cumbersome onboarding or merely not understanding anyone.Ed Moss, the head of growth for layer-1 blockchain firm DeSo, stated the procedure of cryptocurrencies from an exchange, transferring it to a wallet with an installed Chrome extension, and then paying high gas fees to transact on-chain or throughout chains is expensive and tiresome for newbie users.” Weve discovered that 99% of mainstream users will drop off at that very first step, so simplifying this flow is mission important.” Therefore, the single most important element is to make sure the onboarding procedure is as smooth as possible, Moss said.Imagine you had to mint whatever we publish on social media and had to pay gas charges.

The problems can begin even prior to this point, according to Suhail Kakar, the developer of DeSo app Onboard. Due to the fact that users require to familiarize themselves with blockchain, wise contracts, and wallets prior to they sign up, they frequently shy away from taking the first step, Kakar discussed.” A party where you do not understand anybody.” Catching up to the massive network effects that web2 social platforms such as Facebook, Instagram and X (formerly Twitter) wont be an easy job either.Kakar stated DeSo apps require to invest more time developing their neighborhoods because making an existence in these applications is “a bit like going to a party where you dont understand anybody.” He thinks that as more top-tier creators and influencers move on-chain it could be a tipping point, as users will eventually follow where the high-quality content goes. Data from April shows that Facebook, Instagram and Twitter hosted about 2.98 billion, 2 billion, and 372.9 million regular monthly active users, respectively. By comparison, one of the most gone to decentralized social media networks Odysee averaged only 5.3 million typical regular monthly distinct users in between January and April, according to CoinGecko.Average variety of regular monthly active users on decentralized social media platforms between January and April. Source: CoinGeckoMoss argues another reason decentralized social media hasnt strike the masses is due to the fact that Ethereum and other wise contract platforms arent purpose-built to offer social media applications at scale.Thus, we believe the future of crypto does not consist of a single general-purpose blockchain that rules them all, but rather a series of dominant, specific blockchain, each tailored to a specific classification of applications. This is the way crypto will see mass adoption.– DeSo (@desoprotocol) December 29, 2021

By comparison, one of the most gone to decentralized social media networks Odysee averaged only 5.3 million average monthly distinct users between January and April, according to CoinGecko.Average number of regular monthly active users on decentralized social media platforms in between January and April. Source: CoinGeckoMoss argues another factor why decentralized social media hasnt strike the masses is because Ethereum and other wise agreement platforms arent purpose-built to offer social media applications at scale.Thus, we believe the future of crypto does not consist of a single general-purpose blockchain that rules them all, however rather a series of dominant, customized blockchain, each customized to a particular category of applications. The perfect option would be to designer a “storage-heavy” or “infinite-state” blockchain, that is capable of keeping and indexing massive amounts of information at the least expensive cost possible, he explained:”This is what a social application would require in order to store actions like posts, likes, follows, remarks, and social graphs directly on-chain to allow full decentralization from any business entity or central federal government.”Without it, Moss thinks end-users might never really own their content, identity and social graph.Will Friend.tech buck trend?Base-powered social platform Friend.tech has seen strong uptake over the past few weeks.The platform enables developers to connect to their audience through tokenized attention, where a developers impact is represented by shares, or secrets that can be traded for access to unique private chat spaces.

The perfect service would be to designer a “storage-heavy” or “infinite-state” blockchain, that is capable of saving and indexing massive quantities of data at the most affordable cost possible, he described:”This is what a social application would need in order to keep actions like posts, likes, follows, comments, and social graphs straight on-chain to allow complete decentralization from any corporate entity or central federal government.”Without it, Moss thinks end-users might never ever truly own their material, identity and social graph.Will Friend.tech buck trend?Base-powered social platform Friend.tech has actually seen strong uptake over the past couple of weeks.The platform enables developers to link to their audience through tokenized attention, where a developers impact is represented by shares, or secrets that can be traded for access to special private chatroom. Friend.tech has actually reeled in over 85,000 users from over 127,000 wallets, which have actually jointly sent out over 630,000 requests to the network since it launched earlier this month, according to CoinGecko.However, other market pundits believe the model might end up being a six-to-eight-week fad, while some have even suggested the platform is already starting to slow. Related: Decentralized social networks a video game changer for developer money making– Web3 execSales profits from decentralized social media networks is projected to reach $12.1 billion in 2023 and is estimated to surpass $101 billion by 2033, a compounded yearly growth rate of 23.6%, according to Future Markets Insights. Other decentralized social media networks consist of Jack Dorseys Bluesky– a decentralized Twitter alternative, Mastodon and Lens Protocol. Collect this post as an NFT to protect this minute in history and reveal your support for independent journalism in the crypto space.Magazine: Decentralized social networks: The next huge thing in crypto?

Other Questions People Ask

What are the main reasons decentralized social networks have a retention problem, say execs ...?

According to executives in the decentralized social media space, a significant retention problem arises from cumbersome onboarding processes and a lack of understanding among new users. Ed Moss highlighted that 99% of mainstream users drop off at the initial step due to the complexities involved in cryptocurrency transactions and high gas fees. Additionally, Suhail Kakar pointed out that users often hesitate to engage because they feel like they are entering a social environment where they don't know anyone, making community building essential for retention.

How can decentralized social networks improve user retention, say execs ...?

To enhance user retention, executives suggest simplifying the onboarding process for new users. Ed Moss emphasized the importance of creating a smoother flow for cryptocurrency transactions to prevent drop-offs at the first step. Furthermore, fostering community engagement and attracting top-tier creators and influencers could help users feel more connected and encourage them to stay on these platforms.

What challenges do decentralized social networks face compared to traditional platforms, say execs ...?

Decentralized social networks face significant challenges in competing with established platforms like Facebook and Instagram, which boast billions of active users. Executives like Suhail Kakar noted that decentralized platforms often lack the network effects that make traditional platforms appealing. Additionally, Moss pointed out that existing blockchain technologies are not specifically designed for social media applications at scale, which hampers their ability to attract and retain users effectively.

What role do gas fees play in the retention problem of decentralized social networks, say execs ...?

Gas fees are a critical factor contributing to the retention problem in decentralized social networks, as highlighted by Ed Moss. He explained that high transaction costs can deter new users from engaging with the platform right from the start. This financial barrier, combined with the complexity of managing cryptocurrencies, makes it challenging for newcomers to navigate these networks, leading to high drop-off rates.

Will new platforms like Friend.tech help solve retention issues in decentralized social networks, say execs ...?

Friend.tech has shown promising uptake, attracting over 85,000 users shortly after its launch, which could indicate a potential solution to retention issues in decentralized social networks. The platform's model allows developers to connect with their audience through tokenized attention, creating unique engagement opportunities. However, some market analysts caution that this model may only be a temporary trend, suggesting that long-term success will depend on sustained user interest and community building.