The idea of tokenizing social networks is not new, and the goals of Web3 Social applications to return users control over their data sound too idealistic. However, recent trends have generated interest in the Web3 Social sphere. This article explores product approaches in the Web3 Social space that aim to challenge Web2 giants.


What is Web3 Social?

Web3 Social applications differ from Web2 projects in several ways. Web3 social apps can use blockchain to establish ownership of assets within the app. User data can be shared across applications built on the same blockchain, for example, an NFT avatar can be used in multiple apps. Applications can be built on smart contracts, allowing other developers to create alternative clients using the same logic, without centralized control.

Web Evolution: Web1 to Web3

Web1 was about reading content. Web2 introduced the ability to read and create content, leading to the emergence of social networks. Web3 builds upon this by allowing users to read, create content, and own their data and digital assets. Although Web3 Social apps currently lack a massive user base, growing trends are drawing attention to this space.


Popular Social Networks and Blockchain Integration

Adoption of Web3 Features by Web2 Platforms

Many traditional social media platforms are integrating blockchain capabilities to offer Web3 features to Web2 users. Reddit has launched NFT avatars to support content creators. Twitter allows NFT avatars for Twitter Blue subscribers. Telegram sells usernames and anonymous numbers on the TON blockchain and plans to launch a decentralized exchange. VK (VKontakte) has introduced NFT avatars, a token showcase, and an upcoming NFT marketplace. Although these are early-stage integrations, they indicate a shift toward Web3 adoption.

Major Players and Investments in Web3 Social

Key Players Entering the Web3 Social Space

The team behind AAVE’s lending protocol is developing the Lens Protocol social graph, which enables the creation of decentralized social networks. Vitalik Buterin, the founder of Ethereum, has created an account on Nostr, a decentralized social network. The CyberConnect platform raised $15 million in a Series A funding round. Cointelegraph has launched an accelerator program for Web3 social network projects. Tribes, a Web3 messaging and group wallet app, raised $3.3 million in funding.

Middleware Protocols for Web3 Social

Instead of creating end-user applications, some projects focus on building middleware protocols to manage data processing between the blockchain and user applications.

Key Features of Decentralized Social Graphs

Middleware protocols provide decentralized identification for authentication and authorization, a social interaction graph to store user information, and content storage and distribution for transparent and tamper-proof data sharing.

Notable Middleware Protocols

Lens Protocol, developed by AAVE, is one of the most well-known decentralized social graphs. Built on Polygon's Layer 2 solution, it allows interaction with the Ethereum ecosystem. It features NFT-based data storage, where user profiles and content are stored as NFTs, and built-in composability that enables flexible monetization models.

Farcaster uses a hybrid approach that combines blockchain with centralized data hubs to minimize gas fees, allowing for affordable decentralized applications.

CyberConnect aims to be a shared database for various applications, promoting interoperability between Web3 social networks.

RSS3 is a Web3 content distribution protocol inspired by the Web1 RSS standard. Its primary product is a data API delivering Web3 content feeds, with over 200 million monthly requests.

Emerging Trends in Web3 Social

Copying Web2 Social Models in Web3

Most Web3 social applications currently mimic Web2 products. However, some projects are innovating by leveraging new trends in social networking.

Content Facilitation in Web3

With an overload of low-quality information on the internet, curation economy is emerging, where users are rewarded for curating valuable content. Yup is a social network where curators earn YUP tokens when their content collections receive likes. Dataverse, a Web3 version of Pinterest, allows users to facilitate, share, and monetize content collections.

Social Investing

Gen Z is heavily engaged in both crypto investing and social media. Web3 Social platforms are integrating social investing, allowing users to follow and copy the trades of top investors. SprinkleBit enables users to track and replicate investments of successful investors. Alinea allows users to create and share investment playlists.

Read more : Web3: The Future of the Internet with Privacy

Web3 Content Presentation

With the rise of NFTs and smart contracts, Web3 platforms are developing innovative ways to present content. Showtime is a TikTok-style NFT content feed. Zapper provides an NFT viewer interface. Interface is another NFT-based content feed.

Tokenizing Web2 Weaknesses

Traditional Web2 social networks monetize user data through advertising. Web3 projects aim to tokenize problem areas in Web2 business models. Startup Permission connects brands and customers by allowing users to receive advertisements in exchange for tokens. The startup Bullz rewards users with tokens for creating and verifying crypto-related content, which can be exchanged for gift cards.

Challenges of Web3 Social

Web3's ideals of decentralization and user ownership are appealing, but network effects still dominate user adoption. Studies show that users primarily join social networks because their friends are there, not necessarily because of ideological principles like data ownership.


Conclusion

Will Web3 Social applications challenge major Web2 giants? The answer remains uncertain. This article has covered some of the key trends shaping Web3 Social, but the industry is still evolving. Many interesting projects continue to emerge in this space.