2023 is the year of open and decentralized social apps

2020 was the year of DeFi, 2021 was all about NFTs, 2022 was the year of the clean-up, and I’m convinced that 2023 will be the year of open and decentralized social graphs.

It's easy to spot macro trends. What is difficult to foresee is the tipping point. For the decentralization of social networks, it's now.

What will drive usage?

What will drive usage is not abstract reasons like privacy. Not even major data breaches have incentivized people to abandon popular platforms. Most users say, “I have nothing to hide, and my friends/family are already on it. Why should I leave?”

The convenience of centralized platforms creates difficult hurdles to overcome when persuading users to switch. The value proposition of decentralized apps must be substantial, and while privacy alone will not spur change, the interoperability and innovation of systems will.

Let me explain.

Innovation is impossible under Big Techs’ shadow

In the last 10 to 15 years, collaboration with the big guys has been impossible. The business model for Big Tech brands like Facebook or Twitter doesn't permit access to their user's social graphs, meaning no innovation outside of the platforms … ever.

Back in the day, investors used to ask entrepreneurs, “Are you Amazon/Facebook/Google proof? Are you able to develop your user database without relying on Big Tech?” Even if you successfully build an app within their platform, you will not be greeted with open arms. You’ll find yourself swiftly overpowered.

This question succinctly demonstrates VCs' familiarity with Big Tech’s response to outsiders building on their platforms.

Exercising the freedom to innovate again

Over the past few years, we’ve seen many talented people passionate about web3 (true ownership, composability, digital sovereignty) bringing their ideas to fruition. As they build, they create additional interoperability and intuitive innovations, and this is where users will benefit most.

We are entering a new paradigm where open source protocols provide a universal language and permission-less access. For the first time, builders are becoming mavericks of ingenuity.

Some early signs of these new trends

With so many people building in this space, we see more and more applications. For example, Lens.xyz and XMTP, allow you to use your social graph, content, and DM on different interfaces: Orb, Phaver, Lenster, Buterfly, Converse, etc.

An example of the limitations of current web technology is the inability to use your follower/following graph and direct messages on one platform, such as Twitter, on another platform, like Facebook. Despite it being your data, there is no interoperability between platforms by design.

In a web3 environment, you would truly own your follower/following graph, posts, and direct messages. This opens up a world of possibilities, as developers can create new features and experiences without barriers and without the need for a large user base to create a new social network. This changes all dynamics of innovation and speed. We are about to see a Cambrian explosion of innovation in the social media environment.

We’re also seeing some creators making near replicas of popular centralized platforms with the same UX UI as Twitter, YouTube, and Instagram, but in a decentralized form.

Despite the current bear market, products are launching, and VCs are making significant investments in the space.

Brands are at the threshold of an exciting opportunity. They can choose to be an industry leader or face the consequences of falling behind. I’m convinced that 2023 will be a year of unparalleled growth and innovation, and open and decentralized social apps will play a key role.

Stani Kulechov Yoginth S Nilesh Rathore Phaver