A Hybrid Approach to Social Media on Ethereum
In a significant development in the world of blockchain-based social protocols, Farcaster, founded by two Coinbase alumni, has announced that it has closed a $150 million fundraise. Led by Paradigm, the platform has also raised money from other prominent players in the crypto space, including a16z crypto, Haun Ventures, USV, Variant, Standard Crypto, and others.
What is Farcaster?
Farcaster invites developers to build other apps on top of its social protocol. The most popular app built on top of it is Warpcast, which is similar to Twitter in functionality but offers a decentralized alternative to traditional social media platforms.
Building a Social Experience on Ethereum
Farcaster is taking a unique approach to building a social experience on the Ethereum blockchain. Instead of storing all user data and interactions onchain, Farcaster uses a hybrid approach that stores user identities onchain while storing data such as public posts, follows, reactions, and more offchain.
The Cost of Storing Data
To store their data on the platform, users have to pay "rent" to Farcaster. Currently, this costs about $7 worth of ETH for 5,000 posts. If a user doesn’t want to pay, then their older casts (which is what they call posts) will be deleted as they make new casts.
Security and Consistency
According to Farcaster’s website, "actions are performed onchain only when security and consistency are critical." This means that the use of onchain actions is kept at a minimum to reduce costs and improve performance. By storing user identities onchain, Farcaster offers another way to verify that people are who they say they are.
The Benefits of Onchain Identity Verification
Storing user identities onchain provides several benefits. For one, it allows for the verification of users’ identities, which can help reduce the risk of fake accounts and other malicious activity. Additionally, this approach can also help increase trust among users, as their profile will be connected to the other activities they do with that wallet.
Limitations of Onchain Identity Verification
However, there are some limitations to onchain identity verification. For example, it’s possible for the same person to create multiple wallets, which could make it difficult to verify their identity. Nevertheless, if someone’s wallet is relatively blank, then any sketchy behavior will be met with more skepticism.
Features of Farcaster
One key feature of Farcaster is its individual channels for specific topics. This allows users to engage in discussions related to a particular topic without clogging up their other followers’ feeds.
The Frames Feature
Farcaster’s Frames feature allows developers to share the apps they’ve built atop Farcaster as individual "frames" within the platform. This can help increase engagement and interest in the various apps being developed on top of the protocol.
Use Cases for Farcaster
Farcaster has several use cases that make it an attractive alternative to traditional social media platforms. For example, users can engage with each other without having to worry about data collection or censorship.
The Future of Social Media
The rise of decentralized social networks like Farcaster is a significant development in the world of social media. As more and more people become concerned about data collection and online security, Farcaster’s hybrid approach offers an attractive alternative to traditional social media platforms.
Conclusion
Farcaster has raised $150 million in funding from prominent players in the crypto space, which will be used to further develop its decentralized social network. With its unique approach to building a social experience on Ethereum, Farcaster is well-positioned to compete with traditional social media platforms and offer users a more secure and private alternative.
What’s Next for Farcaster?
With this significant influx of funding, Farcaster will be able to further develop its platform and expand its reach. The company plans to use the funds to improve its scalability, increase user engagement, and explore new features and use cases.
The Significance of Farcaster’s Funding Round
Farcaster’s $150 million funding round is significant not only for the company itself but also for the broader decentralized social network space. It highlights the growing interest in decentralized alternatives to traditional social media platforms and demonstrates the potential for these types of platforms to scale.
Will Farcaster be a Success?
Only time will tell whether Farcaster will become a success. However, with its unique approach to building a social experience on Ethereum, it has all the ingredients necessary to compete with traditional social media platforms and offer users a more secure and private alternative.
