What we need are not Web2 copycats, but more crypto-native approaches for innovation. We believe the true paradigm shift for Web3 social networks will include five themes: social graph, decentralised identity, privacy, composability, and tokenisation. It will be a vigorous transition from platform-centric apps to user-centric protocols & Dapps.
Web3 social network can be divided into four layers: data layer, protocol layer, privacy layer, and application layer, of which protocol layer will be the core. We suggest paying attention to protocols and data networks that can sustainably attract users to generate new relationships, identities, and certificates, as well as Dapps that can build up a long-term profit-sharing tokenomics with their community. Moreover, the social relationship formed by Soul Binding Token (SBT) may be able to fully capitalize on protocol composability and decentralized identity.
In Web2.0 each of us lives in "walled gardens" created by tech giants. The longer users stay in the "walled gardens", the better the garden know about us. However, once we decide to move to another garden, we must give up all social relationships and data.
This situation is about to change in the Web3 world. With permissionless and immutable blockchain technologies, all actions generated by the user on the chain will be recorded in the block, and such data will only and completely belong to the user.
We believe the paradigm shift for Web3 social networks will be a renaissance, a vigorous transition from platform-centric apps to user-centric protocols & Dapps. The narrative of the Web3 social network includes the following themes: social graph, decentralized identity(DID), privacy, composability, and tokenization.
Just as the movie "Ready Player One" depicted, we may be able to maintain all of our social relationships across different apps and products. For example, you can play Warcraft with your Twitter friends, and you will also know what new NFT your friends have bought recently. One can even find a soul mate through the algorithm recommendation system.
Forming a comprehensive social graph firstly requires multi-source cleaning, association, and collection capabilities. Moreover, users tend to manage private keys with prudence, which means interactions with wallet addresses are not that frequent. Therefore, user relationships cannot be analyzed purely from on-chain behavior, additional social information is still stored on off-chain servers. Finally, We also need to go one step further and encourage users to form generic relationships in Web3, by developing more product and incentive programs.
In web1 and web2, we need to go through a lengthy process to prove that we own the account. In Web3, this could be achieved by simply verifying the wallet's private key.
Dencentralized Identities(DIDs) will probably be the most important asset for Web3 users. The transparency and immutability of the on-chain chains establish the cornerstone for trust, and interoperability among Dapps ensures the composability of such identity. Whether it is personal reputation, NFT ownership, Lending&borrowing, Diplomat, License, Passport, etc., they can be translated into on-chain information that users have full control over. Users can then access all Dapps through a unified identity protocol.
In Web3, the data belongs to users and yet is readable to everyone. Maybe you might feel that there is no privacy at all?
We can think of solutions from three aspects：
Composability will put cryptocurrencies at the forefront of revolutions and open up an infinite number of possibilities.
We believe "composability" should have the following key elements:
If Web2 users "come for the tool and stay for the network", in Web3 they will "come for the profit and stay for the network".
There are many interesting profit-sharing models in Web3 projects:
Fan Token: Rally allows creators to issue fan tokens. As the creator gets more popular, the value of the fan token also rises, and creators and token holders all profit from this.
Tokenization of artworks: Mirror helps authors mint an article into NFT and start crowdfunding. Whenever these NFTs are sold, a certain percentage of the sale fee is returned to the NFT holders, who can exchange a certain percentage of ETH in the pool.
Tokenization of social relations: Lens Protocol mint users’ likes/follows/comments into NFTs, and these NFTs will increase in value in relation to the popularity of the creator & the post; And based on such a relationship, it naturally provides good soil for the community. Atem Network is connecting the community through NFT, and users can discuss, trade, and govern the NFT-based community.
（Mirror Funding Page）
However, in this ecosystem, we can observe several common problems:
We believe Web3. 0 social network can be divided into four layers: data layer, protocol layer, privacy layer, and application layer.
The data layer includes decentralized data networks and databases, such as Arweave, IPFS, Ceramic, Kwil, etc., which are used to store user on-chain identity data, and social relations.
At the moment, some user data is still stored in centralized servers such as AWS. With more user moving to web3 social media, decentralized databases will usher in a broad space for development.In the long run, the data storage is likely to adapt unified data models to facilitate interoperability among Dapps.
Ceramic is a decentralized, cross-chain database service that can manage dynamic content data based on IPFS, and has built a dynamic public chain ecosystem (Ceramic Network).
The protocol layer mainly includes DID protocol and the social graph protocol. They are the infrastructure of Web3 social networking. We believe that this layer will be the core layer of the social network for the following reasons:
No matter which social Dapp the user uses, they all need a social graph and DID.
In the long run, the protocol layer will have a strong network effect.
Both the social graph and the DID are in the early stages of development. On the one hand, the industry has not yet formed a unified standard. On the other hand, users have little understanding of these concepts. The industry landscape is still unclear, bringing a lot of investment opportunities.
Moreover, in order to build an Internet that allows for free speech, we need protocols, not platforms. As discussed in the article "Protocol, Not Platforms", we see that protocols surpassed all the existing company structures and are building a new world for us.
Popular projects in the social graph include CyberConnect and Lens Protocol, here’s a brief comparison of the two:
Amber Group outlined the DID ecosystem in November 2021 as follows:
DID projects can be roughly divided into four categories: off-chain identity (KYC), on-chain identity, on-chain credit scoring, and on-chain credential. It is worth emphasizing that since the current mature form of DID is not yet clear, the following classification does not mean that DID can be subdivided into four tracks or modes. In the future, it is likely to be a whole with various components.
a. Off-chain identity(KYC)
Suppose a person is an engineer at Google who graduated from Stanford University, and he has two apartments in Silicon Valley. If the above information can be authenticated and linked to a wallet address, then these off-chain social records will also provide backup for his social activities, lending, and other activities on the chain.
BrightID is a social identity network that allows you to prove that you're only using one account. It's the holy grail of digital identity. It currently has more than 57,000 users. Users need to make an appointment for a Zoom video conference and perform the unique identity authentication of BrightID through face recognition and verification by the verification officer.
Verite was launched on May 10 by Circle, the issuer of UDSC, in which KYC is one of the keys to its identity verification. The specific KYC details will be further disclosed soon.
b. On-chain Identity
On-chain identity projects ****do not pay attention to the user’s offline information, but use the concept of “digital identity” to aggregate users’ on-chain behavior.
Unipass aims to achieve the aggregation of on-chain identities: through a Unipass ID, users can link mailboxes, and multiple ETH addresses, and connect to the social graph (CyberConnect), information feeds (RSS3), and other protocols, becoming the "One Pass" for users in Web3.
Spruce is a digital identity authentication system whose suite of products provides support for user authentication, credentials, and storage, providing decentralized access control of data and interoperability between Web2 APIs and Web3. Binding with Web2's existing platform account is undoubtedly a very good identity enhancement solution for some people who already have certain achievements and influence in Web2.
c. On-chain Credit Score
The goal of on-chain credit scoring is rather simple - to provide more convenience for Defi by credit score ratings.
By issuing "DeFi Passport", the creditworthiness of each DeFi Passport holder's on-chain address is quantified based on the credit score of each DeFi Passport holder. Compared with the first two types of DID projects, ARCx focuses more on the user's "digital financial identity", and uses more of the user's on-chain transaction data rather than their social behavior data.
The goal of such projects is to encourage users to participate in activities held by different organizations and issue on-chain certifications to them.
Technically Project Galaxy is not an identity protocol, but a credential network. After users connect to the wallet, a "Galaxy ID" will be generated, and digital certificates will be issued to users according to their historical behaviors, such as "Uniswap Trader", "OpenSea Trader" and so on. These certificates are like various professional qualification certificates in the real world, and they will play a role in some specific scenarios.
Privacy-Preserving computing technologies refers to technologies like zero-knowledge proof, Multi-Party Computation(MPC), and Trusted Execution Environment(TEE). Some well-known blockchain privacy computing networks are Oasis Network, PlatON, Phala Network, ARPA, Aleph Zero, Findora, and Deeper Network.
https://mp .weixin.qq.com/s/2OrIFXXTeWAKwbvl3dhlIA Decentralized
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