7.3 Competitive Analysis: DeSo

DeSo

DeSo Crypto, also known as Decentralized Social, is a decentralized social media-based blockchain that offers functionalities of Web 2.0 social media platforms. Users have ownership over their own content and the option to monetize it. DeSo is the native cryptocurrency on the Decentralized Social blockchain that supports and scales social media applications that require large amounts of data. DeSo is based on the Ethereum blockchain and uses a hybrid proof-of-work (PoW) consensus mechanism to operate, resulting in far lower energy costs.

Users can earn tokens by posting content, commenting or liking posts, and tagging other users. Content creators can be tipped “diamonds”, which are deposited into the user’s wallet. All activities on the DeSo platform have a price, and users must pay tokens for various actions. The more active a user becomes on the blockchain, the higher the fee becomes, hile the 25% of the fees collected are redistributed to token holders.

Weak Points

  1. Lack of user adoption: A blockchain platform can have all the technical features and innovations, but if there are no users, the platform will not succeed.

  2. Poor business model: Without a viable business model, the blockchain startup will not generate revenue, and its long-term viability will be in question.

  3. Competition from other blockchain platforms: With so many blockchain platforms in the market, it can be difficult for a new startup to differentiate itself and gain traction.

  4. Regulatory challenges: The blockchain industry is still largely unregulated, but there are potential legal challenges that could impact the viability of a blockchain startup.

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