Summary
Friend.tech offers a new modality for creators to monetize content through tokenized attention, but faces some challenges regarding privacy and security.
Through a unique system of "Keys", Friend.tech allows creators to monetize their influence while providing users with access to exclusive content.
Despite all the challenges, Friend.tech's innovative approach to monetizing content suggests a promising future that will change the way social media and blockchain interact.
What is Friend.tech and how does it work?
Friend.tech is a token-powered social decentralized app built on Base that allows creators to monetize their content or experience. Creators connect with their online community through tokenized attention, where a creator's influence is represented by "Keys." These Keys are essentially shares that provide access to exclusive private chats, tips, or any other benefits associated with the account.
Since its launch on August 10, 2023, Friend.tech has attracted a lot of attention. As of October 4, 2023, the app has received over 317,000 unique buyers, 314,000 unique topics, and over 11,000 ETH in revenue. These figures reflect Friend.tech's potential to become a highly influential SocialFi app.
Source: Dune Analytics Dashboard by Cryptokoryo, as of October 5, 2023.
Regardless of popularity, before participating in the Friend.tech ecosystem it is important to understand how it works. In the next section, we will explore some of the core elements and functionalities of Friend.tech.
1. Invitation codes
To start using the Friend.tech app, you need an invitation code. The easiest way to get it is through friends, Reddit forums, or searches on X (formerly Twitter). Once you have your code, you can set up your Friend.tech account (see next section).
2. Access to Friend.tech
Once the user has set up their account and successfully deposited funds, they will need to purchase a free "Key" linked to their account. In addition, each person who registers receives three invitation codes that they can give to their friends so that they can also join the application.
3. Friend.tech Keys
After purchasing an initial “Key,” users can begin using the app and purchase “Keys” from their favorite creators to receive the benefits of perks associated with that account. These benefits include access to private chats, as well as gifts or any other specific benefits that account provides.
The value of these Keys varies depending on the influence of the creator and their demand: the more people who have that Keys, the greater their value. If an individual decides to leave the group, they can do so through the sale of their Key.
4. Commissions
When purchasing "Keys", the money spent includes platform and creator commissions. For each purchase or sale transaction related to a share, a 10% commission is generated, of which half goes to the person from whom you are purchasing the Key and the other half goes to the Friend.tech treasury.
For example, if someone buys "John's Key" for 1 ETH, John receives 0.05 ETH and Friend.tech's treasury receives another 0.05 ETH.
5. Airdrop Points
Within the Friend.tech app, there is a tab dedicated to airdrops. For now, airdrops consist of "points" airdropped to users weekly every Friday. The app mentions that the points will have future uses within Friend.tech, which may translate to a future token airdrop. However, this is speculation, so pay attention to the official Friend.tech accounts to stay up to date with the latest information on the project.
How do you create an account on Friend.tech?
To use the Friend.tech app, you must create an account. To do so, follow these steps:
1. Visit Friend.tech from your phone or computer browser and download the Friend.tech app. Please note that you must have an invitation code provided by a current member of the app. The best way to get an invite code is through X (formerly Twitter) or on the Reddit forums.
2. Once you have gained access to the app, you must log in and link your X account to the app using your phone number or Google account.
3. The next step is to link your X account with the Friend.tech application and authorize access to X.
4. You can now deposit ether on the mainnet and move a minimum of 0.01 to your Base wallet account. Another way to fund your account is to deposit on the mainnet through the Friend.tech platform, which is much more practical.
5. Once the deposit is confirmed, you will be prompted to purchase your own Key first in order to start using the platform.
6. Once you have purchased your Key, you will find the platform's home page.
7. You can now explore Friend.tech and buy some Keys.
What are the benefits of Friend.tech?
Key benefits associated with Friend.tech include:
1. Channel Monetization
Friend.tech introduces a unique and effective way of content monetization. Users generate income by offering exclusive content and privileges to users who purchase one of their Keys.
2. Simplification of the Web3 process
Friend.tech offers incredible benefits in streamlining certain processes associated with Web3, making it easier to use for the general public.
After logging in and depositing funds, you can gain uninterrupted access to the platform, avoiding authentication and repetitive transactional procedures. This alleviates the complexity generally associated with blockchain-based operations.
Additionally, the app is incredibly easy to access as it is available to download for both Android and iOS, allowing users to conveniently manage their activities from their smartphones.
3. Capital social
In Web3, social capital refers to the power and influence that comes from having a large, engaged community of enthusiastic people. Friend.tech offers an exciting opportunity to derive value from social media, relationships and community engagement by turning all of that into a tangible economic asset.
What are the limitations of Friend.tech?
Here are some of the key limitations associated with Friend.tech:
1. Privacy Concerns
Friend.tech's mandatory association with X represents a potential risk. Since X is a favorite target of hackers, it is vital to stay alert. A recommended measure for users to mitigate this risk is through revoking app permissions through X settings, which will remove any unwanted data links and secure your digital identity. Alternatively, using Friend.tech on the computer and modifying the settings with developer tools could also provide an additional layer of protection.
2. Security concerns
Crypto community participants raised several security concerns. One of them is that the Wallet Keys are hosted on the Friend.tech server, which is partially custodial. This poses security risk issues due to potential hacks and reliance on third-party accessibility.
Another risk associated with Friend.tech is that there is no bot protection on the backend. This lack of bot protection means greater vulnerability as it simplifies the creation of bots that continuously poll Friend.tech servers for new account creation activity. These bots can exploit this information to quickly leverage new users' shares after their first on-chain purchase, giving the bots an unfair advantage.
3. Profitability concerns
Earning big on Friend.tech can be challenging if you don't have a sizable follower base due to the platform's design, which monetizes influence, meaning the larger the audience, the greater the earning potential. for the content or exclusive offers that are shared.
Conclusions
Friend.tech has shown great potential since its launch. Its unique use of Keys, combined with factors such as creator influence and demand, provides an attractive environment for both creators and users.
As for challenges, such as privacy and security concerns, the platform sees them as opportunities for growth and improvement. In the future, the simplicity and effectiveness of Friend.tech's approach could change the way social media and blockchain technology interact.
As the platform continues to develop, it is expected to continue attracting users and empowering creators. There is a lot to keep in mind when it comes to Friend.tech. It will be interesting to see what forms it takes in the future. However, the product is still new, so it's important to do your own research when interacting with it, as with any new project.
Further reading
Blockchain Layer 1 vs. Layer 2 scalability solutions
What is Polygon (MATIC)?
Rollups Optimistas versus Rollups Zero-Knowledge (zkRoll-ups)
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