While Friend.tech booms, decentralized social has a retention problem — Execs

” Catching up to the enormous network results that web2 social platforms such as Facebook, Instagram and X (formerly Twitter) will not be a simple job either.Kakar said DeSo apps need to invest more time constructing their neighborhoods since making a presence in these applications is “a bit like going to a celebration where you dont know anyone. By contrast, one of the most visited decentralized social media networks Odysee balanced just 5.3 million typical monthly unique 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 hit the masses is because Ethereum and other smart contract platforms arent purpose-built to supply 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, customized blockchain, each customized to a specific classification of applications.

In spite of the recent buzz around riend.tech, some decentralized social networks are still having a tough time getting users to register and remain on their social networks platforms. Two executives in the decentralized social (DeSo) media area informed Cointelegraph that as much as 99% of users moving into DeSo for the very first time will wind up quitting, either due to clunky onboarding or just not knowing anyone.Ed Moss, the head of growth for layer-1 blockchain firm DeSo, said the process of cryptocurrencies from an exchange, transferring it to a wallet with an installed Chrome extension, and then paying high gas costs to negotiate on-chain or across chains is tedious and expensive for novice users.” Weve found that 99% of mainstream users will drop off at that primary step, so streamlining this circulation is objective important.” Therefore, the single essential factor is to make certain the onboarding process is as frictionless as possible, Moss said.Imagine you needed to mint everything we post on social media and had to pay gas fees. How would you spend your time, energy and cash? This is what you need to be concentrating on.– Ruben Cress #HIVE (@RubenCress) October 21, 2022

Despite the recent hype around riend.tech, some decentralized social networks are still having a difficult time getting users to sign up and stay on their social media platforms. By contrast, one of the most visited decentralized social media networks Odysee averaged just 5.3 million typical monthly distinct users in between January and April, according to CoinGecko.Average number of month-to-month active users on decentralized social media platforms in between January and April. Source: CoinGeckoMoss argues another reason why decentralized social media hasnt strike the masses is due to the fact that Ethereum and other smart contract platforms arent purpose-built to supply 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 tailored to a particular classification of applications.”Without it, Moss believes end-users may never genuinely own their content, identity and social graph.Friend.tech bucks trend?Meanwhile, Base-powered social platform Friend.tech has seen strong uptake over the previous week.

The ideal solution would be to designer a “storage-heavy” or “infinite-state” blockchain, that is capable of storing and indexing huge amounts of information at the most affordable cost possible, he explained:”This is what a social application would need in order to save actions like posts, likes, follows, comments, and social charts directly on-chain to make it possible for complete decentralization from any business entity or centralized federal government.”Without it, Moss believes end-users may never truly own their material, identity and social graph.Friend.tech dollars trend?Meanwhile, Base-powered social platform Friend.tech has actually seen strong uptake over the past week. The platform enables developers to connect to their audience through tokenized attention, where a developers impact is represented by shares, or keys that can be traded for access to exclusive 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 demands to the network given that it introduced previously this month, according to CoinGecko.Related: Decentralized social networks a video game changer for developer monetization– Web3 execHowever, other market experts believe the model might end up being a six-to-eight-week fad.Sales earnings from decentralized social networks is forecasted to reach $12.1 billion in 2023 and is estimated to go beyond $101 billion by 2033, a compounded annual development rate of 23.6%, according to Future Markets Insights. Other decentralized social networks consist of Jack Dorseys Bluesky– a decentralized Twitter alternative, Mastodon and Lens Protocol. Collect this article as an NFT to preserve this moment in history and reveal your assistance for independent journalism in the crypto space.Magazine: Decentralized social media: The next big thing in crypto?

Other Questions People Ask

What challenges do decentralized social platforms face while Friend.tech booms?

Decentralized social platforms are struggling with user retention, as highlighted by executives in the industry. Many users find the onboarding process cumbersome, leading to a significant drop-off rate, with estimates suggesting that up to 99% of new users may quit due to difficulties in navigating the initial steps. Additionally, the lack of a robust infrastructure tailored for social media applications on existing smart contract platforms further complicates user engagement and retention.

How does Friend.tech's success impact the retention problem in decentralized social media?

Friend.tech's recent surge in user adoption presents a contrasting narrative to the retention issues faced by other decentralized social platforms. By allowing developers to engage their audience through tokenized attention, Friend.tech has attracted over 85,000 users in a short period. This model may provide insights into how decentralized platforms can enhance user experience and retention by creating more engaging and rewarding environments for users.

What are the key factors contributing to the retention problem in decentralized social media?

One major factor contributing to the retention problem is the complex onboarding process that requires users to navigate cryptocurrency exchanges and wallets, which can be daunting for newcomers. Additionally, many decentralized platforms do not have a strong community presence, making it feel isolating for new users. Executives emphasize that streamlining the onboarding experience and fostering community engagement are crucial steps to improve user retention in this space.

Why do executives believe decentralized social media needs specialized blockchains?

Executives argue that existing smart contract platforms like Ethereum are not optimized for social media applications at scale, which hampers user retention. They suggest that a series of specialized blockchains tailored for specific applications could better serve the needs of decentralized social networks. This approach would allow for more efficient data storage and management, ultimately enhancing user experience and ownership of content.

What role does user experience play in the retention of decentralized social media platforms?

User experience is critical in retaining users on decentralized social media platforms, as highlighted by industry executives. A frictionless onboarding process is essential to prevent new users from dropping off before they fully engage with the platform. Moreover, creating an inviting community atmosphere can significantly enhance user satisfaction and encourage long-term participation in decentralized social networks.