Despite the recent success of decentralized social media app Friend.tech, industry executives argue that decentralized social media platforms still face challenges in onboarding and retaining users. According to two executives in the decentralized social media space, up to 99% of users who try decentralized social media for the first time end up quitting due to difficulties with onboarding or lack of connections. The process of using cryptocurrencies, transferring them to wallets, and paying high transaction fees can be tedious and expensive for new users. Simplifying the onboarding process is crucial to improving user retention. Additionally, users often shy away from decentralized social media platforms because they need to familiarize themselves with blockchain technology and wallets before signing up. Catching up to the network effects of centralized social media platforms like Facebook and Twitter is also a challenge for decentralized platforms. Building strong communities and attracting top-tier creators and influencers could be a tipping point for decentralized social media adoption. However, current smart contract platforms like Ethereum are not purpose-built for social media applications at scale. Executives suggest that a storage-heavy or infinite-state blockchain capable of storing large amounts of data at low cost would be ideal for decentralized social media. Friend.tech, a decentralized social platform, has seen significant user uptake recently, but some industry experts believe it may be a short-lived trend. Sales revenue from decentralized social media networks is projected to grow significantly in the coming years. Other decentralized social media networks include Bluesky, Mastodon, and Lens Protocol.
