Social Networks Value Users

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
SP

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.

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