TL;DR
Friend.tech offers a novel way for creators to monetize content through tokenized attention, yet faces challenges regarding privacy and security.
Using a unique system of 'Keys', friend.tech allows creators to monetize their influence while also providing users access to exclusive content.
Despite its challenges, Friend.tech's innovative approach to content monetization suggests a promising future, changing how social media and blockchain interact.
What Is Friend.tech and How Does it Work?
Friend.tech is a decentralized social token-driven app built on Base that allows creators to monetize their content or expertise. Creators connect to their online community through tokenized attention, where a creator’s influence is represented by “Keys” (shares). Keys are essentially shares that give you access to a user's exclusive private chats, advice or any other perk associated with the account.
Since its launch on August 10, 2023, Friend.tech has generated plenty of hype. As of October 4, 2023, the app has experienced over 317,000 unique buyers, 314,000 unique subjects and over 11,000 ETH in revenue. These numbers illustrate the potential that Friend.tech has to become an influential SocialFi app.
Source: Dune Analytics dashboard by Cryptokoryo, as of October 5, 2023.
Regardless of the popularity, it's important to understand how Friend.tech works before participating in the ecosystem. In the following section, we will explore some of Friend.tech’s core elements and features.
1. Invite codes
To start using the Friend.tech app, you need an invite code. The easiest way to get your hands on one is through friends, Reddit forums, or a X search. Once you have your code, you're ready to set up a Friend.tech account (check the next section).
2. Access to Friend.tech
Once an account has been set up and funds have been successfully deposited, users are prompted to buy 1 free "Key" linked to their account. Additionally, each person who signs up receives three invite codes to give away to friends to join the app.
3. Friend.tech Keys
After purchasing their “Key”, users can use the app and purchase “Keys” from their favorite creators to benefit from the perks associated with that account. These benefits include access to private chats, as well as giveaways or any other perk specific to the account.
The value of these Keys is relative to the creator's influence and the demand for them, so the larger the number of people holding the key, the higher the value of the “Keys”. If an individual decides to leave the group, they can do so by selling their Key.
4. Fees
When purchasing “Keys”, the money spent is inclusive of the platform and creator fees. For every share-related buy/sell transaction, there is a 10% fee, of which half goes to the person you are buying from, whilst the other half goes to the Friend.tech treasury.
For example, if someone buys “John Key” for 1 ETH, John would receive 0.05 ETH and the Friend.tech treasury would receive 0.05 ETH too.
5. Airdrop Points
Within the Friend.tech app, there is a tab dedicated to airdrops. For now, the airdrops consist of “points” airdropped to users every Friday on a weekly basis. The app mentions that the points will have future uses in Friend.tech, which may translate to a future token airdrop. Nevertheless, this is speculative, so pay attention to the official Friend.tech accounts for information regarding the project.
How Do You Create a Friend.tech Account?
In order to use the Friend.tech app, you must first create an account. To do this, follow the subsequent steps.
1. Visit Friend.tech via your phone browser or computer and download the Friend.tech app. Note that you must get an invite code from an existing member of the app. The best way to get an invite code is via Twitter (X) or Reddit forums.
2. Once you have gained access to the app, you must log in and link your Twitter (X) account to the app through your phone number or Google account.
3. The next step is to link your Twitter (X) account to the Friend.tech app and authorize access to X.
4. Now you can deposit Ether to the mainnet and bridge a minimum of 0.01 to your Base wallet account. Alternatively, you can deposit on the mainnet through the Friend.tech platform, which is much more convenient.
5. Once the deposit has been confirmed, you are prompted to buy your own key first in order to start using the platform.
6. Once your own key has been purchased, you will encounter the platform's home page.
8. Now it's time to explore Friend.tech and buy some Keys.
What Are the Benefits of Friend.tech?
The key benefits associated with Friend.tech include the following:
1. Monetization of channel
Friend.tech introduces a unique and effective way for content monetization. Users generate income by offering exclusive content and privileges to users who purchase one of their Keys.
2. Simplification of Web3 process
Friend.tech offers notable benefits when it comes to streamlining certain processes associated with Web3, making it more user-friendly for the general public.
Upon logging in and depositing funds, you are able to get uninterrupted access to the platform, bypassing repetitive authentication and transactional procedures. This alleviates the complexity usually associated with blockchain-based operations.
Furthermore, the application is incredibly easy to access as it’s available for download on both Android and iOS, allowing users to manage their activities conveniently from their smartphones.
3. Social Capital
In Web3, social capital refers to the power and influence that comes from having a large or engaged community of supporters. Friend.tech offers an exciting opportunity to derive value from social networks, relationships, and community participation, converting it into a tangible economic asset.
What Are the Limitations of Friend.tech?
The key limitations associated with Friend.tech include the following:
1. Privacy concerns
The mandatory association of Friend.tech with Twitter (X) poses a potential risk. Given that Twitter (X) is a favorite target for hackers, it's vital to stay vigilant. A recommended measure for users to mitigate this risk is through revocation of app permissions via Twitter (X) settings, which will remove any unwanted data ties and secure their digital identity. Alternatively, using Friend.tech on a computer and tweaking settings through developer tools could also provide an additional layer of protection.
2. Security concerns
Several security concerns have been raised by individuals within the crypto community. One of these concerns is that wallet Keys reside on Friend.tech’s server, which is partially custodial. This poses security risks due to potential hacks and dependency on third-party accessibility.
Another risk associated with Friend.tech is that there is no bot protection on the backend. The absence of bot protection implies a heightened vulnerability as it simplifies the creation of bots that continuously probe Friend.tech servers for new account creation activity. These bots can exploit this information to swiftly snap up shares of new users following their first on-chain purchase, thereby providing an unfair advantage to bots.
3. Profitability concerns
Earning substantial income on Friend.tech can be challenging without a sizeable social following due to the platform's design, which monetizes influence, meaning the larger your audience, the higher the potential to earn from shared exclusive content or offers.
Closing Thoughts
Friend.tech has shown significant potential since its launch. Its unique use of Keys, combined with factors like a creator's influence and demand, creates an intriguing environment for both creators and users.
Despite challenges such as privacy and security concerns, the platform sees these as opportunities for growth and improvement. Looking forward, the simplicity and effectiveness of Friend.tech's approach could change the way social media and blockchain technology interact.
As it continues to develop, the platform is expected to keep attracting users and empowering creators. There's a lot to look out for with Friend.tech, and it will be interesting to see how it shapes up in the future. Nevertheless, the product is still new, so it’s important to do your own research when dealing with new projects.
Further Reading
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