Popular Decentralized Finance (DeFi) lending platform Aave launched an alternative to centralized social media networks called Lens Protocol on Monday. Lens’s Twitter account tells us that the Protocol, built on top of the Polygon blockchain, is a “permissionless, composable, and decentralized social graph that makes building a Web3 social platform easy”.
Named after lens culinaris, a tall plant with branches that holds a symbiotic relationship with certain soil bacteria, Aave’s protocol serves as a platform for developers to build nuanced applications while still nurturing a shared user base.
PRICE UPDATE: Aave’s native token (AAVE) saw an immediate uptick in price by 7%, touching $184, after the announcement. This builds on the token’s gain of 17% in the last week even as the crypto market collectively recouped from January’s flash crash.
NFT at the Heart of New Aave Platform
Aave’s social media platform is driven by dynamic Non-fungible Tokens (NFTs). Users on the network will create NFT-based profiles that contain the history of all posts, mirrors, comments, and other content you generate. Likewise, NFTs will also be used to represent all content and follows, so following someone on Lens will generate a “follow NFT”.
The “mirror” feature—a referral link of sorts—allows the user to earn a cut on any shared content whenever someone collects the original content using the mirror.
And unlike centralized social media, Lens allows users to own their data and incentivizes their contributions, made as a result of them exercising their voting rights. These tokens can be traded as usual. Thus, overall, Aave’s decentralized platform empowers users in more ways than one.
Aave’s Social Media Entry
Aave’s plunge into social media was not unexpected. As early as July 2021, the founder and CEO, Stani Kulechov, tweeted about launching an alternative to Twitter.
Originally touted as “Twitter on Ethereum”, Lens Protocol distinguished itself from Twitter by putting users in control of their data instead of corporations and external agencies. Highlighting this, in 2021 Kulechov told online crypto news magazine Decrypt, “Twitter makes all the revenue from your tweets and the content you share, and Twitter decides which of your tweets get traction through the algorithm.”
However, Aave is not the first to enter the decentralized social media gambit. Former Twitter CEO Jack Dorsey launched Bluesky way back in 2019 to create an open-source, decentralized platform. DeSo is another popular decentralized social blockchain. It has a market cap of $400 million and over 100 applications (Dapps) built on top of it.
Many of the other decentralized entrants try to mimic existing centralized platforms. Mastodon seeks to replace Twitter, MeWe and Minds with Facebook, D.Tube and LBRY with Youtube, and Ather with Reddit. It will be interesting to see how Aave’s Lens shapes the decentralized social application ecosystem.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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