Can Web3 Conquer the Corporate Goliaths of Social Media?

Web2 social media platforms are among the largest companies in the world, with billions of users happily handing over their personal information

article-image

Twin Design/Shutterstock modified by Blockworks

share

There’s an old adage: if you’re not paying for a product, you’re probably the product.

The typical selling point of social media platforms to current and prospective users is “free” access to the largest online communities. User data, not fees, is the platform’s commodity.   

Personal interests, ranging from shopping habits to political leanings are typically extracted for the benefit of the platform’s bottom line. Advertisers and counterparties glean as much intel from the data as they can and then push their products and ideas right back at the users. 

It seems that social media participants are often willing to give up control of personal data in return for a seamless experience that connects with the largest number of potential friends or followers. 

Stani Kulechov, founder and CEO of Aave and Lens Protocol, spoke to Blockworks about his aspirations for social media tech in an interview on the 0xResearch podcast

Popular platforms provide usability in exchange for “more control over your social capital,” Kulechov says.

Lens Protocol’s profiles ‘secured by the blockchain’

Lens Protocol offers a “composable and decentralized social graph” for building out social network platforms, according to the company website. The tool takes traditional Web2 actions like profile creation, following, sharing and content amplification and turns them into “protocol guarantees by using smart contracts and using the blockchain,” Kulechov says.

“When you create a profile on Lens, that profile is secured by the blockchain,” he says, adding, “if you follow other users, that follower graph is also secured by the blockchain — and these are protocol guarantees.”

To address the challenge of speed versus convenience, Kulechov says that the Lens Protocol stack includes on-chain and off-chain elements. Momoka — an “optimistic scaling solution” launched by Aave — creates blockchain transactions, but stores them on a separate data availability layer. 

“It’s basically a full hybrid stack,” he says.

This allows for much greater performance than current layer-1 blockchain tech can handle. It’s capable of dealing with the potentially massive flows of traffic that social media applications experience. “With something like Momoka,” Kulechov says, “you can take that big amount of data and just dump it directly to a data availability layer.”

“Do I need a blockchain to create a post or a comment? In those cases, maybe data availability is enough as a solution.”

“It’s up to the applications and then users to choose what they actually want and need” from the stack, he says. 

Shifting the dynamics

The biggest benefit for users, according to Kulechov, is a shift in dynamics, from platforms holding most of the power to a system that is more “user-centric.” The social network service provides users with direct control of their online presence, he says. 

“You as a user have oversight of your profile and your follower graph,” he says.

A user could decide to move to another Web3 social platform without having to start over. “You now have the choice and portability to take your followers and go to another experience or even use an alternative algorithm.”

“And because you’re tapping into the same user base,” Kulechov says, it will be “easier to bootstrap a social media application,” carrying followers from one place to another, “because you have that portability by default.”

“Because it’s open, it also means that anyone can compute and create algorithms for discovery, finding content, and finding peers to follow in a more open way.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flying_Tulip.png

Research

Flying Tulip's perpetual put option provides real principal protection, but investors must pay a valuation premium today for products that have to be built over the next 24 months. This structure works best as a stablecoin substitute where the put allows continuous monitoring—accept opportunity cost in exchange for asymmetric upside if the team executes on its ambitious cross-collateral architecture.

article-image

As flows consolidate and volatility fades, finding edge now means knowing which games are still worth playing

article-image

Value distribution came to $1.9 billion distributed in Q3, though total revenues have yet to beat 2021 heights

article-image

MegaETH public sale auction ends tomorrow, and the free money machine has attracted people who like free money

article-image

With tBTC under the hood, Acre abstracts bridging and converts non-BTC rewards to bitcoin

article-image

Accountable is also eyeing mid-November for mainnet launch

article-image

“Adjusted for size, I think it may be the most successful ETP launch of all time,” Bitwise CIO Matt Hougan says