Social Networks Value Users
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A social network's core value comes from its user database, not its technology stack or leadership team. Here's the key framework for understanding this concept.
Core Value Proposition
- The most valuable asset of a social network is its user database
- Contains user information (profiles, connections, behaviors)
- More valuable than engineers, infrastructure, or even leadership
- Companies guard this data "with their life"
Traditional Social Network Model
- Centralized control of user data
- Companies like Facebook maintain strict control over database access
- Only provide limited access through controlled APIs
- Examples of limited access:
- "Login with Facebook" feature
- Facebook Platform for building apps
- Profile data sharing
Decentralized Social Network Alternative (DeSo)
- Inverts traditional model by making database fully open
- Database is transparent and accessible to all
- Anyone can build applications using the data
- No central authority controlling access
Key Benefits of Decentralized Approach
-
User Choice and Control
- Different apps can use same user base
- Users aren't locked into single platform's rules
- Can switch between apps without starting over
-
Algorithm Freedom
- Anyone can create new feed algorithms
- No central censorship or control
- Examples of possible customization:
- Different content filtering rules
- Custom feed curation
- Specialized content focus
Parallel to Financial Systems
- Similar to how Bitcoin challenged government monopoly on money
- Traditional banks/governments control financial system
- Bitcoin provided alternative without central control
- DeSo does same for social networks
07:29 - 09:13
Full video: 01:10:50SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.