With the back and forth between Elon Musk and Twitter's Board, many are speculating whether the popular social media platform is on the decline. A lot more than Mush are questioning the bot situation.
Regardless of the outcome, there is an opening that many feel can be exploited by Web 3.0.
In this article we will delve into the way that Hive could take a large chunk Twitter's userbase. Ultimately, it comes down to detailing what Twitter is and how Hive can counteract it.
Let us begin.
Certainly everyone knows it is a microblogging platform that allows people to send out short term text messages. Yet, to truly find the answer to this question, we should go under the hood to see what is there.
So, if we think about it in term of its core components, what is Twitter?
To me, we can sum it up as nothing more than a database. Twitter simply is a data storage system that recorded all that was done on the platform since its inception. Each new Tweet simply adds to that.
Of course, the data is formatted in such a way that it is tied to each account. Users can see the information pertaining to the individual activity, that is until the company decides to ban someone.
Basically, that is all Twitter is. Sure it has some features but, at its core, it is a database.
Of course, we still have Twitter.com. If we analyze this through the same lens, it is nothing more then the front end to access said data. The key is that it is the only one that does this. People cannot build other front ends utilizing the data.
Twitter is a closed network. The different nodes are all part of the company. If there is a moat, this is it.
Here is the opportunity. Twitter is nothing more than a database with a front end that provides some features to the userbase. Due to this, it was able to enjoy the benefits of the network effect.
As we will see, there are some advantages that Hive can offer which could make this outcome very possible.
Before getting that, let us strip Hive to its core components.
Hive is a blockchain. This means it utilizes Distributed Ledger Technology (DLT). Unlike Twitter, this is a decentralized node system which copies the ledger (dataset) onto many unrelated computers around the world. It is permissionless meaning anyone can write to it as long as they have an account (with the private key) and enough Resource Credits to access the network.
The best known network of this sort is Bitcoin, although it uses a different consensus mechanism. However, one key is the Bitcoin ledger only contains transactions. Hive allows for the storage of text, in the form of articles and comments. This enables for a more robust database.
Think of it as comparing the database of a bank to that of Twitter. Hive is more like the latter.
From this perspective, the ability exists. Of course, there will be the question of scaling but that is always going to be the case with blockchains. Fortunately, the one thing most can agree upon regarding DPoS chains is the ability to scale. Sidechains could also be of use here to remove some of the load.
Therefore, in terms of the infrastructure, the potential exists to offer a decentralized version of Twitter.
Now we come upon the second part of the equation, and the one that becomes the epitome of Web 3.0.
Leofinance is bringing out an update to their site which will include "Threads". This is a feature that is going to allow short form content. On the back end of things, it will utilize the commenting system. To the user, it will have a feel to Twitter which is all the individual cares about.
This is the first of a multi-step process whereby Leofinance aims to bring out an application similar to Twitter. They are looking to create this on-chain, meaning utilizing Hive as the database.
Here is the point many miss: if that happens, it could be game over for Twitter.
Let me explain.
It isn't so much the application that Leofinance brings out that is the answer. What is more important is their writing to the blockchain. Once that is done, the data is available for anyone to utilize. The Leofinance applications is ultimately just a front end.
What this means is other developers can duplicate this process. It might take a bit of reverse engineering but the capability is there. Since the data is open, they can incorporate it into whatever they build.
This is no different than how the different applications process the long form content.
In other words, Hive's solution to Twitter could a decentralized database with a number of front ends that provide different features to their userbases.
The goal is not to build one alternative to Twitter but, rather, a dozen of them.
Welcome to Web 3.0.
With the Elon Musk situation, there are suddenly many trying to build an alternative to Twitter. The challenge is they are using blockchains with transactions fees.
This is ultimately a non-starter in the social media realm. It is hard to imagine where people will pay, even if it is a small amount, to utilize social media features. After all, would you pay a penny each time you went to upvote someone, let alone 5 or 10 cents?
Even with the micropayment capability, the probability that heavy users will pay for each activity is low.
The Resource Credit System on Hive makes it rather unique. The transaction fees are built into the staking one does with the main coin. This is what allows access to the chain.
What this means is there are no direct transaction fees. As anyone on Hive knows, if there are enough RCs for the activity, it can be done.
This is something that will be needed for microblogging. Most people are not going to pay money to send out a "Tweet"
In the end, Hive is in a very unique position. Naturally, it would still have to get word out and attract the users but the foundation would be in place.
What are your thoughts? Do you see how Hive has the core components to be a major threat to Twitter.
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