Decentralized Social App Development: How To Guide

Decentralized social apps have gained popularity in recent years. The platform offers excellent control over their data and is more censorship-resistant than centralized social media apps. The platform operates on a decentralized and distributed blockchain network.

The growing popularity of decentralized social media platforms offers a great business opportunity for anyone who wants to invest in a future-proof business. 

The latest report states that the blockchain-based decentralized social app market is expected to reach $43.33B by the end of 2031.

In this article, we will explore the business potential of decentralized social media platforms and the required ways to get started with building and launching a decentralized social app.

What Is Decentralized Social Media?

Decentralized social media platforms take out the control of the central authority. The platforms are built on a decentralized technology such as blockchain (allowing them to operate in a distributed and decentralized way).

The central authority’s absence gives users better control over their data. The platform creates a distributed network of servers where users can interact with others and publish their content with extra security and control.

Essential Components Of Decentralized Social App

The blockchain-based social media platform includes the following components.

1. Smart Contracts

There is a significant role of smart contrast in blockchain-based social applications, such as facilitating secure and transparent interaction between platform users. Smart contracts are self-executing contracts programmed to execute after meeting certain conditions the owner sets.

There is a wide range of applications of smart contracts on blockchain-based social media platforms, such as managing user authentication, verifying user ownership, distributing rewards among content creators, content & post monetization, etc. 

2. Decentralized applications (DApps)

Many web3 social networks leverage the power of DAapps on their platform to facilitate additional services and functionalities such as payments, NFTs, etc. 

DApps are autonomously operating decentralized applications that utilize smart contracts that run on a blockchain or other distributed ledger system.

3. Consensus mechanisms

The consensus mechanisms ensure network stability and proper maintenance of shared, accurate, and immutable records of transactions and data. 

Different concessions mechanisms are available for social apps, such as Proof of work, Proof of stake, Byzantine Fault Tolerance, and Federated Consensus. 

Understand the difference between Proof of work vs Proof of stake  (the most popular consensus mechanism.)

The selection of the consensus mechanism depends on the goals, technical requirements, and values of the decentralized social app.

Each consensus mechanism has its value regarding security, decentralization, scalability, and energy consumption. 

4. Token economy

The token economy empowers blockchain social networks with many monetization opportunities, including cryptocurrencies and NFTs. Moreover, the token economy helps improve engagement levels by rewarding content creators on social platforms. 

A token economy can be implemented in various ways, such as Token distribution, staking, voting, utility, and burning.

5. Censorship resistance mechanisms

Since all the content is stored on decentralized blockchain networks. No centralized third party can control content and posts shared on social media platforms. The platform allows users to share any content on the social network without moderation.

However, decentralized social apps can be governed by a community of users instead of a centralized entity to filter out posts and content on social networks.

The Business Model Of Decentralized Social App 

Centralized social media platforms generate revenue by collecting and monetizing user data. Based on the data collected, social media platforms target users with relevant advertisements.

However, when talking about decentralized social media platforms, users can get more control over their data. As a result, these decentralized social media platforms need other ways to generate revenue.

Blockchain-based social media platforms can generate revenue in the following ways.

1. Premium features 

The social platform can generate revenue by offering premium features for accessing exclusive content to paid users. 

Users can pay for additional features within the app, such as expanded search options, increased storage space, accessing exclusive content, etc.

2. Advertising

Companies can still generate revenue by showcasing ads without violating the privacy and data of their users. However, the platform can inform users about the data being collected. 

Users can decide to share their data to earn rewards with tokens or other forms allowing advertisers to display ads on their social feeds.

3. Partnerships 

Social platforms can partner with other brands, such as media outlets or e-commerce platforms. 

Social media can generate revenue through commissions, affiliate marketing, or other referral fees when users purchase the products and services of their partnered brands through social media platforms.

4. Tokenization

The social platform can reward its users when they contribute to the network by creating content, participating in staking mechanisms, etc. 

The reward can be cryptocurrencies, tokens, NFTs, or other digital assets later, which can be traded on cryptocurrency exchanges, providing a potential revenue stream for the app. 

How To Shift Existing Social Apps On Decentralized Servers?

Shifting from centralized to decentralized servers can be done by implementing the following things. 

1. Building and deploying new technology and infrastructure based on decentralized technology such as blockchain, smart contracts, tokenization, etc.

2. Changing the business model adopted by decentralized social apps instead of collecting users’ data and showcasing ads. 

3. Giving users more control over their data and enabling them to permit to collect their data in exchange for receiving rewards.

4. Complying with laws and regulations and implementing data privacy and other technology-related regulations to ensure their users’ data privacy.

Top Decentralized Social Apps

Explore the best platforms, enabling how the community can govern the platform’s decisions.

1. DeSo 

The platform is a layer-one blockchain network built to decentralize the social media experience. DeSo is 100% open source, and all the posts and social graphs on DeSo are stored directly on-chain. 

The platform offers many features, such as censorship resistance, decentralized identity, content monetization, etc. 

Founded in	2021
Location	Los Altos (USA)
Funding	$200M
Investors	Andreessen Horowitz, Sequoia Capital, Coinbase

2. Roll

Roll is a blockchain-based monetization solution for content creators where the platform provides tokens and Ethereum use cases. On this platform, the user can develop social money controlled by an individual or community.

The platform provides social tokens (a digital asset that users can plug into other applications) in the Web 3 ecosystem. Also, users can trade social tokens on their platform. Moreover, Roll offers an app-based platform available on iOS & Android devices. 

Founded in	2017
Location	New York City (United States)
Funding	$13M
Investors	IOSG Ventures, Animoca Brands, Alchemy Capital

3. Minds

An open-source, decentralized social network that encrypts all the private communication between users. The platform also features a mystified algorithm that helps users to boost their content reach. 

Minds is available on Android and iOS devices, where people can earn rewards based on their contribution to the platform. 

Founded in	2011
Location	Wilton (United States)
Funding	$17M
Investors	Medici Ventures, Visary Capital

4. Bubblehouse

The platform is famous for photo and video sharing. Bubblehouse allows users to share their art with their fans and can monetize their content by selling them to their fans. The app can be accessed from both Android and iOS devices. 

Founded in	2002
Location	New York City (United States)
Funding	$13M
Investors	CASSIUS, Third Kind Venture Capital, SV Angel

5. DSCVR

A user-controlled decentralized social network that runs entirely on-Chain. DSCVR enables users to earn rewards when other members upvote their posts.

Moreover, the users with tokens can also govern platform decisions regarding its features and services.

Founded in	2021
Location	Los Angeles (United States)
Funding	$9M
Investors	Polychain, Upfront Ventures, Tomahawk. VC

How To Build A Decentralized Social App?

Here is the detailed guide for blockchain-based social app development

Step 1: Explore the ideas

Social media platforms can be designed for different purposes. For example, Facebook is a communication tool where friends and relatives can casually interact with each other. While for LinkedIn, professionals can connect across different industries. 

On the other side, YouTube, where users can upload unlimited quantities of video content, whereas Instagram has the same concept but with the ability to upload both photos and videos. 

When you proceed with creating a decentralized social app, start by finding an original idea that can be easily implemented in the market. 

Step 2: Decide & purchase a domain name

Selecting a name that is easy to remember and unique is crucial. You can consider a name that is a combination of two words showcasing the idea of your social media concept.

However, when choosing the name, ensure it does not violate the patent copyrights of significant countries such as the US, Russia, China, etc. 

Also, avoid choosing names that sound similar to existing brands, as it may mislead your users. You confirm the availability of your domain name on different platforms such as Google dominance, Bluehost, Namecheap, etc. 

If the name is already taken, you can choose another name or buy the domain name from the owner if they are ready to sell it at a reasonable price.

Step 3: Identify requirements and functionalities

The next step to creating your decentralized social is to determine your platform’s requirements. The requirement may be feature security, design, code quality, etc. However, the most specific need for your platform will be as follows. 

I. Selection of blockchain network

An ideal blockchain network for your platform can be determined by considering the project requirements such as speed, security, transaction fee, available features of the blockchain network, etc.

We suggest you consult with blockchain developers to select a specific blockchain network for your social app.

II. What should things be decentralized? 

You can consider multiple factors that need to be decentralized, such as content censorship, user control, tokenization, reward system, customization of virtual environment and avatars, etc. 

III. How to store user data and manage it?

For storing and managing user data, you can consider blockchain networks that provide servers for data storage. However, you must ensure that the collection of personal data will not be implemented at a technical level. You can inform users about the data that you will collect and ensure to take their permission before collecting and storing their data on servers.

IV. Creation of a virtual world

You can go for traditional social media platforms without a virtual world.

However, to enhance your platform experience further, you can consider creating a metaverse platform for your social media platform where users will interact with each other through their digital avatars and VR devices.

Step 4: Select a development approach

You can choose from the following options:

I. Build your platform starting from scratch 

Creating your social app & blockchain network starting from scratch requires a lot of time and money.

However, it will also give you a development advantage, such as you can customize your entire platform based on your business requirements. 

Many best examples, such as Twitter, LinkedIn, and YouTube, are created starting from scratch.

Pros	Cons
More possibilities to implement unique ideas, features, and capabilities	Expensive, Require time and good management
No restrictions on design & functionality
Full control over the product along with copyright code source, etc

II. Based on existing platforms 

You can use an existing blockchain network to build and launch your social network platform, such as Ripple, Ethereum, EOS, TRON, etc. 

You can check a detailed comparison between Cardano vs Polkadot and Solana to select the best blockchain network.

Building your social application on a blockchain network may reduce development time and cost. But may limit you with features and functionalities. 

Pros	Cons
Economical and faster to build compared to building along a blockchain network is well.	The limitation of a specific blockchain network can restrict the features and functionality of your platform.
Full control over the product.	Requires skilled developers that have experience in the particular blockchain network.

III. Ready-made solutions

White-label app cloning may allow you to build your social network in a few days with a limited budget. However, ready-made solutions may even further limit you with features and functionalities for your decentralized social app. 

Pros	Cons
Most economical and faster to build.	Copyrighted-related issues may arise.
Not needed expertise in programming.	The least possibility of success for not having uniqueness.

Step 5: Build your marketing plan

The right way to attract a huge audience to your platform is to build a proven marketing plan with involvement in the following things:

I. Targeted advertising 

You can run advertisements based on purchases, previous search history, and other demographic factors such as income status, age, gender, income level, graduation level, etc.

II. Influencer marketing 

A kind of marketing where social media influencer promotes products and services among their fans. Consider reaching out to influencers that create content related to blockchain and others relevant to your app concept.

III. Content marketing  

A marketing practice where there is the creation and distribution of content on the internet, such as videos, blogs, and articles, to attract more audience to your platform in an organic way.

Step 6: Start development and testing

After preparing all the required plans and business strategies for your social app, You can develop your social media platform. To develop your platform, you would need a development team that can work on your project. 

The most feasible option we suggest you outsource your project to an app development company. Completing the coding part will depend on the approach and complexity of your project.

Once done with programming, it is crucial to test the functionality of your app. Testing will allow you to find bugs and eliminate them in a  much faster, safer, and more convenient way. 

The app development team can help you with checking code quality stands and delivering an excellent product by following the systematic app testing methodology.

Tech Stack For Decentralized Social App

We recommend you consult with a blockchain development company to get the recommended technology stack for your project. 

The common technology stack for building a blockchain-based social app is as follows. 

Networks	Ethereum, Solana, NEAR, Polygon
Nodes	Infura, Alchemy, Chainstack, Getblock, Pocket Network, QuickNode, and RunNode.
APIs	Covalent, QuickNode, The Graph, Bitquery, Alchemy, and Biconomy
Dev Tools and Platforms	Firebase, Supabase, and PlayFab
Dapps	DeFi dashboards, DEXs, identity and authentication dapps, NFT marketplaces, data handling dapps, etc

Planning To Build Your Decentralized Social App?

In conclusion, if you want to develop a decentralized social app, IdeaUsher is the company you need. Our experienced team has the expertise to create a unique and innovative social app that is secure and user-friendly. With our decentralized app development services, you can rest assured that your app will provide users with the privacy and security they deserve.

At IdeaUsher, we understand the importance of creating a social app that stands out from the competition. That’s why we work closely with our clients to understand their needs and design an app that is tailored to their specific requirements.

We can easily fit into your existing teams to help you build your social app based on blockchain technology. Also, you can explore the case study of our project, “EQL,” showcasing our blockchain development expertise.

So, if you’re looking for a company to help you develop a decentralized social app, look no further than IdeaUsher. Contact us today to learn more about our services and how we can help bring your app idea to life.

Contact Idea Usher 

Email:

[email protected]

Phone:

(+1)732 962 4560

(+91)859 140 7140

FAQ

Q. What do you need to know about decentralized social networks?

A. Social networks are built on blockchain networks and hosted on independent servers rather than centralized servers. No central authority has control over the social network. 

Q. What is the impact of a decentralized social network?  

A. The blockchain-based social network gives users more control over their posts and content. The censorship on such platforms has been governed by a community of users instead of centralized entities.

Q. What is the need for decentralized social media?

A. The non-centralized social media app enables users to remove the control of the central authority. The app allows users to retain their rights to their content and provide an opportunity to earn rewards.