TL;DR
Friend.tech offers a new way for creators to monetize content through tokenization, but faces challenges around privacy and security.
Using a unique 'Keys' system, Friend.tech allows influencers and creators to monetize their work, whilst offering users access to exclusive content.
Despite the challenges, Friend.tech's innovative approach to content monetization points to a promising future, changing the way social networks and blockchain interact.
What is Friend.tech and how does it work?
Friend.tech is a decentralized social token-based application built on Base that allows creators to monetize their content and experiences. Creators connect to their online community through âtokenized attention,â where creator influence is represented by âKeysâ (shares). Keys are essentially shares that give access to a user's exclusive private chats, as well as advice or any other benefit associated with the account.
Since its launch on August 10, 2023, Friend.tech has generated a lot of excitement. As of October 4, 2023, the app has over 317,000 unique buyers, 314,000 unique topics, 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, October 5, 2023.
Regardless of popularity, it is important to understand how Friend.tech works before joining the ecosystem. In the following section, we will look at some of the main elements and features of Friend.tech.
1. Invitation Codes
To start using the Friend.tech app, you need an invitation code. The easiest way to get one is through friends, Reddit forums, or searches on X (formerly Twitter). Once you have your code, you're ready to set up a Friend.tech account (check out the next section).
2. Access to Friend.tech
After the account is set up and funds are successfully deposited, users will be prompted to purchase 1 free âKeyâ linked to their account. Additionally, each person who signs up receives three invitation codes to send to their friends.
3. Keys do Friend.tech
After purchasing their âKeyâ, users can use the application and purchase âKeysâ from their favorite creators to enjoy the benefits associated with that account. These benefits include access to private chats, as well as sweepstakes, giveaways, or any other benefit specific to the respective account.
The value of these Keys is relative to the influence of the creator and the demand for them, therefore the greater the number of people who have a given Key, the greater its value will be. A user can leave the group by selling their Key.
4. Fees
When purchasing âKeysâ, the money spent includes platform and creator fees. For each related buy/sell transaction, there is a 10% fee. Of that 10%, half goes to the person you are buying from, while the other half goes to Friend.tech's treasury.
For example, if someone buys the âKeyâ from John for 1 ETH, John will receive 0.05 ETH in fee and Friend.tech's treasury will also receive 0.05 ETH.
5. Airdrops Points
In the Friend.tech app, there is a tab dedicated to airdrops. For now, airdrops consist of âpointsâ distributed to users every Friday. The application mentions that, in the future, these points will be used on Friend.tech, which can be understood as an airdrop of tokens in the future. However, this is mere speculation, so follow Friend.tech's official accounts for information about the project.
How to create an account on Friend.tech?
To use the Friend.tech app, you must first create an account. To do this, follow the steps below.
1. Access the Friend.tech website on your cell phone or computer and download the Friend.tech app. Note that you will need an invitation code from an app member. The best way to get an invite code is through the X (Twitter) or Reddit forums.
2. After gaining access to the app, you must log in and link your X (Twitter) account to the app via your mobile number or Google account.
3. The next step is to link your X (Twitter) account to the Friend.tech application and authorize access to X.
4. You can now deposit Ether on mainnet and send a minimum amount of 0.01 to your Base wallet. Alternatively, you can deposit on mainnet via the Friend.tech platform, which is much more convenient.
5. Once the deposit is confirmed, you will be asked to purchase your own Key to start using the platform.
6. After purchasing your Key, you will be redirected to the platform's home page.
7. Now it's time to 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 presents a unique and effective way of monetizing content. Creators can generate income through content and exclusive privileges offered to users who purchase one of their Keys.
2. Simplification of Web3 processes
Friend.tech offers notable benefits when it comes to streamlining some processes associated with Web3, making it easier to use for the general public.
By logging in and depositing funds, you have uninterrupted access to the platform, avoiding repeated authentications and transaction procedures. This alleviates the complexity typically associated with blockchain-based operations.
Additionally, the app is incredibly easy to access and is available for download on the App Store and Google Play, allowing users to conveniently manage their activities through their smartphones.
3. Capital social
In Web3, social capital refers to the power and influence that comes from having a large, engaged community of supporters. Friend.tech offers an excellent opportunity to convert the value derived from social networks and community participation into a tangible economic asset.
What are the limitations of Friend.tech?
The main limitations associated with Friend.tech include:
1. Privacy concerns
Friend.tech's mandatory association with X (Twitter) poses a potential risk. X is one of the main targets for hackers, so it is important to always be aware. A recommended measure for users to mitigate this risk is by revoking application permissions through X settings, which will remove any unwanted data links and protect your digital identity. Alternatively, using Friend.tech on a computer and adjusting settings through developer tools can also provide an additional layer of protection.
2. Security Concerns
Several security concerns have been raised by individuals in the crypto community. One of these concerns is that the wallet Keys are located on the Friend.tech server, which is partially under custody. This poses security risks due to potential hacker attacks and dependence on third-party accessibility.
Another risk associated with Friend.tech is that there is no protection against bots on the backend. The lack of protection against bots represents a greater vulnerability, as it simplifies the creation of bots that continually probe Friend.tech's servers for new account creation activity. These bots can exploit this information to quickly track the actions of new users after their first purchases on the network, thus giving the bots an unfair advantage.
3. Concerns about profitability
Due to the platform's design, which monetizes creators' influence, it can be challenging to make a substantial income on Friend.tech without a large following. The larger your audience, the greater the potential to earn from your exclusive content and offers.
Final considerations
Friend.tech has shown significant potential since its launch. Its unique use of Keys, combined with factors such as creator influence and demand, creates an interesting environment for both creators and users.
Despite challenges related to privacy and security issues, the platform sees these challenges as opportunities for growth and improvement. In the future, the simplicity and effectiveness of Friend.tech's approach could change the way social networks interact with blockchain technology.
As the platform continues to develop, it is expected to continue attracting users and empowering creators. There is a lot to watch at Friend.tech and it will be interesting to see its development over time. However, the product is still new. It's important to do your own research when dealing with new projects.
Further reading
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Optimistic Rollups vs. Zero-Knowledge Rollups: what are the differences?
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