Despite the recent popularity of the decentralized social media app Friend.tech, industry executives argue that there are still significant challenges in getting users to sign up and stay on these platforms. According to two executives in the decentralized social media space, up to 99% of users who try DeSo for the first time end up quitting due to clunky onboarding processes or simply not knowing anyone on the platform.
Ed Moss, the head of growth for layer-1 blockchain firm DeSo, explained that the process of getting into cryptocurrencies, transferring them to a wallet with a Chrome extension, and paying high transaction fees is tedious and expensive for first-time users. Moss expressed that simplifying this process is crucial because 99% of mainstream users drop off at this initial step.
Suhail Kakar, the creator of the DeSo app Onboard, highlighted another obstacle in decentralized social media adoption. He noted that potential users often shy away from signing up because they need to familiarize themselves with blockchain, smart contracts, and wallets. He compared the experience to attending a party where you don’t know anyone. Kakar believes that DeSo apps need to focus on building their communities and attracting top-tier creators and influencers to create a tipping point where users will follow the high-quality content.
To put the challenge into perspective, data from April shows that traditional social media platforms like Facebook, Instagram, and Twitter have billions of monthly active users, while even the most visited decentralized social media platform, Odysee, only averaged 5.3 million monthly unique users during the same period. This discrepancy demonstrates the scale that decentralized social media platforms need to achieve to compete with their centralized counterparts.
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Moss also argues that Ethereum and other smart contract platforms are not purpose-built to provide social media applications at scale. He believes that an ideal solution would be an “infinite-state” blockchain capable of storing and indexing large amounts of data at a low cost. Without such a blockchain, Moss worries that end-users may never truly own their content, identity, and social graph.
Although there are challenges, Friend.tech, a base-powered social platform, has seen strong uptake in recent weeks. The platform allows creators to connect with their audience through tokenized attention, representing a creator’s influence through shares or keys that can be traded for access to exclusive private chat rooms. Friend.tech has attracted over 85,000 users from more than 127,000 wallets since its launch, signaling potential success in the decentralized social media space.
However, some industry experts believe that platforms like Friend.tech may only be a short-lived trend, while others believe that they are already losing momentum. Despite these differing opinions, sales revenue from decentralized social media networks is projected to grow significantly in the coming years, reaching $12.1 billion in 2023 and surpassing $101 billion by 2033, indicating the potential for mass adoption and long-term success.
In addition to Friend.tech, other decentralized social media platforms like Jack Dorsey’s Bluesky, Mastodon, and Lens Protocol are also emerging in the market. These platforms are contributing to the growth of decentralized social media and offering alternatives to the traditional centralized platforms.
The decentralized social media movement represents a significant opportunity for the industry, with projected growth and the potential for users to regain ownership of their content and data. However, overcoming challenges related to onboarding processes, network effects, scalability, and user adoption will be key to the success and widespread adoption of decentralized social media platforms.
