How Blockchain Technology Can Help Rearchitect Social Networks: An Analysis of Desmos Network

Abstract

Centralized Social Networks (CSNs) such as Facebook, Instagram and Twitter are operated in an obscure, opaque and autocratic manner; many problems arise from centralized corporate power, these issues are based on the misalignment between profit-seeking incentives of corporations and user goals. Censorship, banning and data breaches have become increasingly frequent in the past five years, recent political tensions and the outbreak of Covid-19 have worsened this situation globally. The main issue has an inborn nature: the business model of CSNs utilizes and monetizes users’ data to maximize the profitability of tech giants. In this thesis I explore the case of Desmos, which proposes an alternative approach to social media creation and management. Based on the belief that that the root cause of this problem is the broken relationship between the different parties, Desmos offers a project to fix this broken relationship using blockchain technology. Through a redesigned lifecycle and an improved economic model it can achieve the network growth required for a self-sustainable social network, without the need for centralized intermediaries, thus prioritizing the interests of users. Desmos is therefore the protocol that can be used to build decentralized social networks, while Desmos Token (DSM) is the native token of this blockchain, which allows the holders to contribute to the security and governance of the platform in exchange for incentives.