Read through the technical research on disruptive innovation conducted by our team that is applicable in the decentralized web.

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While base functionality is the same, Decentralized Social Networks operate on decentralized and independent servers which allows its users to manage the information they share back and forth. Moreover, they also do not have a central authority processing and mandating regulations within the network. Each function, feature, and code of a decentralized social network is transparent and open-sourced for each potential user to see. This gives its users control over the network rather than having big corporations handling the information being shared, the management of the data, and rules and regulations. This also omits potential censorship that most social networks have. Over the last few years, looming issues of centralized social networks are being recognized by its users.

## What is wrong with today’s social networks?

 ![You are the product](https://cdn.warpgate.tech/warpgate/1627462292911_post-decentralized-social-network-img-1.jpg)

### User Data & Information

With the rise of social media, more and more data is uploaded and generated by its users. Each user has a digital footprint and persona that they build through time. The information can be used in a variety of ways.

* Connecting with family and friends
* Career progression
* Availing of goods & services

At face value, the concept of social networking seems like a harmless endeavour of sharing and connecting. However,personal data and information can also be used to understand consumer behaviors which advertisers and big companies leverage on to target consumers and customers. Industries such as ecommerce, public elections, and research driven companies leverage this information to maximize their profits and desired outcomes.

Centralized social networks are also data processors who manage users personal data. Since most centralized social networks are free for its users, they need to find a way to monetize and earn a profit. This in turn, allows them to set terms of use that is favorable to their profitability. They have the ability to utilize each user's data to their advantage and benefit. They also may create and run an algorithm that is not transparent to its users. Lastly, since they store and process the data of their users, this makes it attractive to hackers who would want to steal user data to be sold.

### On Data Sharing & Censorship

Social networks that are centralized in nature can also dictate their platforms' data sharing and censorship rules. This can be evident in social networking platforms that are state-run such as China’s Weibo, Douyin, and WeChat to name a few. This can also be evident in the popular Western social networks such as Facebook and Instagram wherein they have censorship for specific topics like Covid-19 and content that may be sensitive for underaged audiences. This feature is a double-edged sword since users have no say in what kind of content should and should not be shared. Moreover, these regulations can change depending on the social network’s owners based on their discretion.

## The Decentralized Social Network Landscape:

![Centralized vs Decentralized](https://cdn.warpgate.tech/warpgate/1627463168751_post-decentralized-social-network-img-2.jpg)

The issues outlined above are being addressed by the up and coming decentralized social networks. Several projects have already started work on creating a decentralized social network of users. [Coindesk](https://www.coindesk.com/), a popular blockchain and cryptocurrency publication, says that [Social Networks are the Next Big Decentralized Opportunity](https://www.coindesk.com/decentralized-social-networks-next-big-blockchain-opportunity). This is due to the fact that social networks such as Facebook are getting a lot of flak due to allegations on misinformation and misuse of user data. Decentralization aims to address these issues.

If you are looking for a decentralized social network to join, here are some characteristics to look for:

* Open-sourced Code
* Decentralized Control Democratic Decision
* Transparent Algorithms
* Quality Content

Here are some projects that are currently being at the forefront of decentralized social networking:

* <https://joinmastodon.org/> - A community-owned and ad-free decentralized social network that is free, open-sourced, and self-hosted. Share links, photos, text, and videos without worry.
* <https://basicattentiontoken.org/> - For advertisers and creators, BAT incentivizes its users who create great content and allows advertisers to know their effectiveness without violating user privacy.
* <https://www.thetatoken.org/> - Theta is a next generation video sharing and streaming platform built for its users. Viewers can directly send THETA tokens to the content creators who stream and create content.
* <https://steemit.com/> - Steemit is a social media platform reminiscent of Reddit. Users have the ability to share information that can be upvoted through tips.
* <https://about.voice.com/> - Voice is a social platform where users can create digital arts across all formats – visual, written, audio and video – enabling them to be easily bought and sold as unique digital artifacts (NFTs).
* <https://bitclout.com/> - Bitclout creates a token based on your favorite personality, content creator, or influencer. These tokens can be bought and sold within the Bitclout ecosystem.

At the end of the day, users are clamoring for a social network that provides quality content that is helpful to everyone while having the ability to decide how these networks function. Decentralized Social Networks are geared to address such clamor. We are very hopeful that within the coming months, we will see the adoption of decentralized social networks.

This week’s publication focuses on a familiar type of platform that maybe each person with internet access has used at least once. Social networks are platforms where people can connect with each other. More than just connecting, they can also share information about themselves like their interests, beliefs, hobbies, and whatnot. This information can be viewed by other people, organizations, and companies within the platform.

What is a Decentralized Social Network?

# What is a Decentralized Identity?

Decentralized Identity is the ability of an individual or person to gain ownership of their digital information through a unique identifier that they manage and own.The unique identifier leverages decentralized ledger technology to take into account all of the information of a particular individual. Individuals can store a multitude of information on their identifiers ranging from citizenship information, healthcare information, and personal records to name a few. Individuals can verify their digital information through external parties to authenticate their identity.

### 7 characteristics

* Security
* Control
* Consent - provide with consent
* Portability - Should be able to interact with others
* Persistence - Cannot be taken away from the user
* Resilient - to censorship
* Minimalistic in terms of data expose - can limit data being shared

### How users can utilize DIDs

* Download a mobile app that could manage DIDs.
* Proof of ID is verified by verifiers.
* Then attached to citizens SSID
* Other entities can attach layers of information to the citizens
* Aggregate and manage our own data

# Verifiers and the importance of interoperability

An external verifier can be a legacy institution who typically manages the information of the individual. The role of these verifiers is to make sure that the information stored for the individual is accurate and acceptable.

Once authenticated and verified, the digital information stored and kept by the individual can now be accepted by other individuals or institutions to be utilized as information tied to the owner. This eliminates the prevailing issue of falsification of information and makes it faster to conduct transactions that require an amount of KYC (Know Your Customer)

It is important to note that, for the decentralized identity concept would need an ecosystem acceptance for it to thrive in today’s society. This means that, it needs to be widely accepted by several organizations, institutions, and individuals in order for it to work. Interoperability follows user adoption. Once several entities accept this mode of sharing digital information, the decentralized identity web can grow and expand.

# Management of Decentralized IDs

Since the Decentralized Identity is managed primarily by the individual, the burden of storing, managing, and securing their information is bound to the individual. Since they own and hold the unique identifier, the management of their private keys and information must be kept secure.

This presents an opportunity for third-party custodians.Custodians can manage and secure Decentralized Identities for individuals and organizations who would require assistance in keeping their DID and allowing access to such information based on consent. However, the security of private keys would still be managed by the owners.

# Decentralized Identity in the world

 ![SSID CAGR growth](https://cdn.warpgate.tech/warpgate/1626347107269_ssid-blockchain-warpgate.png)

Next let’s take a look at the current landscape of Decentralized Identities. South Korea is spearheading a Decentralized Identity Movement - Identity management for the country - promises a treasure trove of use cases beneficial for the country. Launched last year, Seoul’s DID.

**“B-pass”** - integrated identity and verification map for Busan developed by a private company. Integrated with a variety of public services such as healthcare, public transportation, and even libraries. Access to unmanned convenience stores. Users can also report crime reports with built in rewards systems

Busan is a blockchain regulation free zone, to be utilized as a test bed for blockchain technologies. 6 other zones have also been established by Korea. Expect heavy adoption from Korea in the next few years or even months.

# Four challenges:

### 1: User adoption and knowledge:

* Managing their self sovereign identity
* Have a physical wallet similar to a hardware wallet, to keep the DIDs
* Have a third-party safe keep keys
* Elect 3-4 claim issuers, potentially family members, to also have custody of their DID keys

### 2: Ecosystem implementation:

* Government and the private sector has to champion the roll out of DIDs
* A political influence can jumpstart the implementation
* Academics and scientists will have a hard time spearheading

### 3: User participation and Interoperability:

* Identity provider that is outsourced for the KYC process of commercial platforms to have a login in similar to “Facebook Login” but with your DID

### 4: Go-to-market strategy that doesn't involve the government (focus on the commercial sector):

* KYC identity hub
* Verification/Authentication companies
* QR code as a means of providing access and data/information to be shared with individual/institution inclusive of a digital signature of the verifier/authenticator

Decentralized Weekly is a publication by Warpgate Ventures aimed to demystify the technology, jargon, and concepts of the decentralized web. We believe that the catalyst to user adoption is proper education and knowledge sharing.

This week’s focus is about Decentralized Identities. What is a Decentralized Identity? Why do we need it? Why do we need to have sovereignty over our digital identities?