Social media is becoming a more important part of our everyday lives. While Web 2.0 social media platforms have their benefits, web3 technology can improve scalability, privacy and overall infrastructure.

Decentralized Social, also called DeSo, is the first decentralized social media-based blockchain. It’s a web3 social layer that enhances the way we interact with one another. The use of on-chain open data allows multiple decentralized social media applications to quickly share data. The blockchain’s cost-effective technology is also designed to efficiently store data. Use this guide to learn more about DeSo, and how it’s affecting the future of social media.

What Is DeSo Crypto?

DeSo is a decentralized social network that not only offers users most of the functionality of Web 2.0 social media platforms, but also enhances it by offering users ownership over their own content and the ability to monetize it. 

DESO is the native cryptocurrency on the Decentralized Social blockchain. This unique, open-source Layer 1 blockchain is designed to support and scale social media applications that require large amounts of data.

History of DeSo

Decentralized Social was founded by Nader Al-Naji, a former Google software engineer. Because of his dedication to decentralized social media, he’s been given the nickname “the Facebook Killer.” Development for the Decentralized Social blockchain began in May 2019 under the name BitClout. He also began the DeSo Foundation to support blockchain development and the decentralization of social media.

Several early investors were on board with BitClout’s concept. The DeSo platform raised $200 million for development from Andreessen Horowitz (better known as a16z), Coinbase Ventures, Hack VC, Pantera Capital, Sequoia and others.

In March 2021, BitClout launched a prototype of a decentralized version of Twitter built on the DeSo platform. Only a few select early investors were given access to the website. These investors were encouraged to invite other users to the platform, which became very active within a few weeks. This unique prototype demonstrated the versatility of the DeSo infrastructure, and showed how decentralized social apps could easily use the technology to scale. DeSo quickly introduced other features in 2021, including social tipping, NFTs, derived keys and DAO Coins.

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In December 2021, DESO became listed on Coinbase, only a few months after the DeSo platform was introduced. This meant that DeSo was among the fastest Layer 1 blockchains to be listed on the exchange, which has its own standards and requirements.

In November 2022, Salil Shah joined the DeSo team to help scale the business. His current goal is to expand the web3 capabilities of the decentralized social media platform and further enhance the creator economy.

What Does DeSo Social Aim to Achieve?

DeSo aims to be the first decentralized blockchain-based social media platform. The DeSo platform will connect people with common interests, and give people more control over their social media interactions. Because the platform is blockchain-based, users will also be able to maintain a sense of privacy and an added layer of security when interacting with one another.

As social media continues to grow, privacy is becoming a bigger issue. Major social media platforms have a long history of controlling and selling user data. DeSo allows users to control every aspect of their social graph in a decentralized environment. Not only will this give you access to all your social content on a single platform — it means you truly own your own data.

DeSo also makes it easier for social media applications to scale. Web 2.0 social media platforms require a lot of digital storage to support billions of users. Uploading “likes,” pictures and status updates onto a blockchain like Ethereum would cost millions of dollars, as compared to DeSo. According to their website, the cost of storing about 200 characters on-chain is $0.000017, compared to Ethereum’s $78.75. Even more cost-efficient options like Cardano or Avalanche don’t come close to the platform’s storage prices.

How Does DeSo Work?

DeSo uses an Interplanetary File System, or IPFS, which connects all devices on the network to the same set of files. This data isn’t stored in a single location — as it would be on a typical Web 2.0 social network — making it less prone to hackers.

The token-based system allows all users to easily access and contribute to the network. DeSo’s native token, DESO, can be exchanged between users on the network. Users can also earn tokens by posting content, commenting or liking posts, and tagging other users. Content creators can also easily be tipped diamonds, which are directly deposited into the user’s wallet. According to Decentralized Social’s readme file, some users earn thousands of dollars in diamonds each week.

All activities on the DeSo platform have a price. Whether you’re voting in a poll or posting a status update, you’ll need to pay tokens. The more active you become on the blockchain, the higher the fee becomes. While at first this may sound like a disadvantage, keep in mind that 25 percent of the fees collected are redistributed to token holders.

Decentralized Social is based on the Ethereum blockchain, but it uses a hybrid proof-of-work (PoW) consensus mechanism to operate. This results in far lower energy costs. While the hybrid PoW mechanism is efficient, the DeSo Foundation has announced that a proof-of-stake (PoS) proposal is in the works.

Features of DeSo

Decentralized Social has a number of features that make it a truly unique platform. Most blockchains are built with decentralized finance (DeFi) applications in mind. Instead, DeSo focuses on running social media applications. Social media has several different requirements from typical DeFi applications, especially when it comes to interaction and storage. Here are just some of the features that set DeSo apart.

Hybrid Proof-of-Work Consensus

The DeSo platform currently uses a hybrid consensus mechanism to operate. By using a PoW model, the blockchain is able to maintain high levels of security while using considerably less energy than other major blockchains. The development team is consistently working to enhance the model, and plans to move to a PoS protocol in the future.

Social Graphs

A social graph illustrates the connections between users, groups and organizations on a social network. With decentralized social media, all user data is open. This allows users to store all of their posts and social graphs directly on-chain, which makes it impossible for social platforms and third parties to use your connections against you.

Hypersync x DeSo

Most blockchains are designed to store light amounts of data for efficiency. While DeFi protocols typically only need a few bytes of storage space, social applications require infinite amounts of data. Hypersync addresses this issue while allowing for enhanced scalability.

Blockchain activities are typically synced by downloading blocks. Every transaction contained within the block is downloaded. While this can happen very quickly, it uses large amounts of data to process each transaction. Hypersync reduces the amount of data being used by providing users with a snapshot of block activity. The records are trimmed down, and made smaller and more efficient.

Infinite State Applications

On-chain storage is a problem for many blockchain networks. When it comes to the amount of storage space required for large social media networks, blockchain technology typically can’t keep up. That’s because most blockchains were built to power finite-state applications, with a set amount of storage requirements. However, social media apps are infinite-state applications that can grow indefinitely. The DeSo platform uses a custom-built complex system of indexes to increase scaling.

DeSo Identity Service

The DeSo Identity Service is a development tool that allows users to easily store key pairs, or credentials, in applications built on the DeSo platform. Developers don’t need to worry about creating extensive forms or input validations to verify individual identities. Instead, this is seamlessly integrated into the app.

Decentralized Social Applications

At the time of this writing (December 5, 2022), there are hundreds of Decentralized Social applications accessible on the DeSo platform. With several development tools readily available, new applications are popping up regularly. Among the most popular are:

• Diamond: This decentralized version of Twitter encourages engagement, while giving content creators a new way to earn.

• Stori: A decentralized application comparable to TikTok, focusing on video content.

• NFTz: Much like OpenSea, this decentralized NFT marketplace adds more social and community elements.

• DeSocialWorld : Connect with users around the world in multiple languages.

• DAODAO: Take your social fundraising to the next level with this unique web3 platform.

• Vibehut: Meet new people based on your common interests or video chat with your friends.

• NameTrade: Trying to find the perfect username? Use this marketplace to buy and sell!

How to Earn as a Creator on DeSo

The DeSo platform is the perfect place for content creators to earn money. With multiple decentralized social applications, there are dozens of ways creators can get paid for their work so they can start earning additional income. With web3 and blockchain technology, it’s easier for creators to maintain ownership over your content and connect with your followers.

Social Tokens

Every profile on the DeSo platform has its own unique social token that’s assigned to it. Also known as creator coins, social tokens are unique assets that can help draw users to your content. When creator coins are sold, the creator receives a portion known as the founder’s reward, or FR for short. While the default FR for social tokens is 100 percent, you can lower the amount later to entice investors.

Utilizing creator coins can be a great way to raise extra funds for a project. You can find unique ways to promote your social tokens online. 

DeSo NFTs

NFTs are continuing to grow in popularity. Using the NFTz application, artists can sell their work to the highest bidder, much as they would on OpenSea. Unlike other blockchains, creating a new NFT on DeSo costs very little and uses a gasless minting process. The Social Zone also allows you to easily coordinate NFT projects and build your fan base.

Social Tipping

Social tipping allows fans or viewers on DeSO to easily donate diamonds to their favorite creators. Rather than “liking” content, users can send content creators real money with the click of a button. Social tipping encourages content creators to develop regular content on the DeSo platform, while extra incentive also encourages users to create engaging content of value. Because of the way the DeSo platform operates, there are several opportunities to collect tips.

Benefits of DeSo

It can be a difficult choice to move to a new platform if you already have an existing following. It takes time and effort to fully learn all of the features of a new social application. While Decentralized Social may seem complex, the DeSo platform is easy to navigate, and has a low learning curve. There are also several unique benefits to using the DeSo platform that you won’t find on a typical Web 2.0 social platform.

Ownership Over Your Content

Did you know that several social media platforms can use your content without your permission after you post it? While most popular platforms allow you to maintain your intellectual property, you may not have full control over who sees it. With the DeSo platform, you’re always in control over your content. Blockchain technology also allows you to easily move your content from one social application to another.

Monetize Your Content

As mentioned above, monetization is much easier with the DeSo platform. There are several methods content creators can use to generate extra revenue. The easiest way to monetize is through diamonds, but you can also take advantage of the NFT marketplace or social tokens. Whether you want to monetize by encouraging others to buy your creator coins, or through social tipping, all you need to do is start posting engaging content and build a community to monetize on DeSo. The more people who interact with your content, the greater your potential to earn.

Easy-to-Build Apps

Creating new applications on the DeSo platform is fairly straightforward, and a lot of resources are available. The DeSo Developer Hub is a great place to start researching what you’ll need to complete your project. You’ll also be able to use programming languages you may already be familiar with, such as JavaScript or Python. Because the DeSo platform is open-source, the possibilities for application development and the use of the web3 social layer are endless.

Enhanced Privacy

Blockchain technology makes it easier to keep your social media activities private. Instead of private companies holding your data, it’s safely stored on the DeSo platform. It can’t be accessed without your permission, much like when you’re using blockchains for financial applications.

Reduced Spam and Fake News

While the content you see on the network isn’t regulated, it does use a reputation system. This decentralized system can be used to rate the accuracy of the content you see. Because users must pay for all activities, they’re less likely to see people with multiple accounts. The lack of an algorithm also allows users to tailor the content they’re shown with more precision.

DeSo Road Map

Decentralized Social has achieved a lot in the past two years, especially when you consider that the DeSo platform is unique with its own set of challenges. In 2022 alone, Decentralized Social launched Hypersync, DeSo.js and DAODAO.

The DeSo Foundation released a detailed road map that outlines the achievements DeSo hopes to make over the next few months. While the document reminds us that this road map is a draft, it helps to show some of the many projects the development team is working on.

Phase 1 — Social Layer of Web3

Q3 2022 marked the start of the “Social Layer of Web3,” also known as Phase One. During this time, MetaMask was integrated, enabling the ecosystem to be utilized cross-chain. This also facilitated easy integration among Ethereum-focused platforms needing a decentralized social layer for communication. The quarter also saw the launch of the DesoDollar stablecoin, MegaSwap, and the ability to accept any funds, including USDC, on DAODAO. Toward the end of the year, users will be introduced to on-chain end-to-end encrypted group chats.

Phase 2 — The Internet of DeSo

During Q4 2022, there will be a transition into Phase Two, also known as the “Internet of DeSo.” This phase will focus on recruiting new creators and increasing global DESO liquidity. There will be a heavy focus on long-form content, and encouraging creators to post blogs. This in turn will help creators monetize their content and, ideally, make DeSo a top way to share long-form thoughts.

Associations, a “verification paradigm” expected in Q4 2022, will allow app developers and users to easily establish relationships between users and their content, which will help creators build authority and trust among their followers.

Storage capabilities may also get an upgrade in Q4 2022 with the launch of DeSo Vaults, a way to store content directly on the blockchain. Users will be able to create and render static html pages, essentially creating a fully-decentralized version of the internet.

Phase 3 — Revolution

The last phase, “Revolution,” begins with the development of new content for deso.com and the integration with a major NFT platform. Moving into 2023, users can expect to see more cross-chain social integrations appearing on top blockchains. There will also be major upgrades to creator coins.

One of the more ambitious items on the road map is Infinite PoS, scheduled for launch in Q1 2023. Short for “Infinite Proof of Stake” it will likely be published before Q4 2022, leading the way for DeSo 2.0.

While an additional phase, known as “DeSo Glass,” has been announced for Q2 2023, the road map doesn’t currently contain any details.

DESO Tokenomics

DESO has varied greatly in price since its initial launch in June 2021. At the time of its release, the token was valued at just over $178. As of Dec. 5, 2022, the token is valued at over $9. While this is a big jump downward, the token has had two years of big ups and downs.

Listing the token on Coinbase in December 2021 caused a temporary spike in price. This sharp increase led its price to a high of $438.10, an impressive 151 percent price jump.

While the blockchain is open-source, a large amount of funds are currently reserved for future development. Additional investments in the blockchain could result in future price fluctuation and an increased number of individual users.

DESO Price Prediction

Decentralized Social has a wide range of price predictions. While the chart indicates a steady downtrend, some price predictions are less bearish. CoinCodex predicts a bit of a jump past $10 in 2023. Their prediction is based on tech industry growth. Should existing social media platforms, such as Facebook and Google, continue to grow, prices could reach as high as $17.90 in 2023.

Is DESO a Good Investment?

Decentralized Social still has a lot of potential, despite its downward trend in pricing. Deciding whether or not DESO is a good investment will depend on several factors, the biggest of which is determining how major social media networks adapt and incorporate web3 technology.

Another factor to consider is how much future development will be going into Decentralized Social. If demand for decentralized social media rises, DeSo could become a more viable investment. Judging from recent destabilization on platforms such as Twitter, it’s worth keeping an eye on DeSo.

The Future of DeSo

The DeSo platform is incredibly ambitious, and has a fast-paced road map with several items in development throughout the remainder of 2022 and early 2023. Integrations with other blockchain technology could make the blockchain more widely used as the year progresses. For example, the MetaMask integration allows users to interact with a variety of social applications cross-chain. 

Because the platform is developer-friendly and open-source, we’ll likely continue to see new applications in development for years to come. The $50 million Octane Fund, announced in October 2021, is still fueling the development of the ecosystem. Combined with the development team’s strong drive, DeSo technology could easily shape the way people use social media.

Closing Thoughts

Decentralized Social takes advantage of innovative web3 technology to apply the advantages of using a blockchain with social media. While the future may still be a bit unclear for investors, the Decentralized Social platform boasts several advantages, including low storage costs, enhanced privacy and a variety of decentralized social applications. It’s going to be exciting to see how this growing technology will shape the future of social media.

Source: DeSo Crypto: An L1 Blockchain for the Decentralized Community | Bybit Learn