A report from the Friend. Tech revealed that despite the massive usage of the decentralized social media application, the platform requires further development. The Friend. tech executives stated that most social media applications face challenges while onboarding users to the platforms.
In an interview with Cointelegraph, the Friend.tech executives stated that most of the new members will end up exiting the platform. The executive admitted that the decentralized social (DeSo) network has lately experienced a high number of sign-ups. However, due to the massive onboarding and unfamiliarity with the social platforms, the executive regretted that most newly joined members would quit DeSo.
Retention Problems Facing Decentralized Social Media Applications
A statement from DeSo’s head of growth for layer 1 blockchain, Ed Moss, outlined the process of transferring cryptocurrencies obtained from an exchange to a wallet using the Chrome extension. The official regretted that the process is tedious and expensive for the user since the platform must pay high gas fees to complete transactions on the on-chain.
Moss stated that 99% of the first-timer users will quit the process at the initial stage due to its complexities. The executive recommended the developers of the decentralized social media application to ensure that the onboarding process is simple to join.
Responding to Moss, a DeSo developer, Suhail Kakar confessed that the problem affecting decentralized social platforms arises before onboarding. The developer underscored the need for the users to understand the operation of blockchain, smart contracts, and online wallets before signing up.
Kakar blamed the users for avoiding comprehending the functioning of the technologies used to build the decentralized applications. Besides the challenges experienced on the decentralized social media applications, the executive highlighted the network challenges Web2 platforms such as Facebook and X experiences.
Kakar urged the DeSo team to invest resources to build their platforms to benefit the communities. The developer admitted that Web3 social media applications have cemented their presence at a significant market position.
Increased Competition in Social Media Sector
In April, Facebook, Instagram, and Twitter had around 2.98 billion, 2 billion, and 372.9 billion active users, respectively. The statistics demonstrated that Odysee was among the most visited decentralized social media sites.
It implied that the DeSo team would be required to focus more on building its communities to broaden its market presence. The official labeled DeSo operations like going to a party where no one knows you.
In his admission, Kakar stated that transitioning to on-chain platforms will encourage users to move to high-quality content. The developer noted that the unsuitability of Ethereum and smart contracts limits the decentralized social media platforms.
He regretted that the Ethereum and smart contracts failed to support the scaling of the social media platforms. Kakar urged developers to invest in developing storage-heavy blockchains that will provide sufficient storage of massive data at a friendly cost.
Overview of Revenue Generated from Decentralized Social Media Platforms
The developer underlined the need for social media platforms to have adequate storage for supporting posts, comments, social graphs, and follows. Kakar argued that improving the storage capacity for social apps will help decentralization from corporate entities and centralized government platforms.
The developers stated that failing to implement the above recommendations will limit the user from having complete control of their content, identity, or social graph.
According to Future Market Insight, the decentralized social media network is expected to generate revenue of $2.1 billion in 2023. The report demonstrated that in the next decade, the social applications on the decentralized network will generate revenue totaling to $101 billion.
Reportedly, Friend. tech has invested heavily to expand its geographic presence. On August 19, the Friend. tech team launched a decentralized social (DeSo) platform to support the creators to connect with their audiences more efficiently.
Soon after the launch, DeSo generated a revenue of $1 million within 24 hours. The high adoption of the DeSo platform threatened the performance of application built on the Uniswap and Bitcoin network.
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