Summary

Decentralized social network protocols aim to create open, user-controlled social media platforms by leveraging technologies like blockchains and distributed systems. These protocols enable users to own and manage their data and social connections, fostering censorship resistance and interoperability between different platforms. A key example is the Decentralized Social Networking Protocol (DSNP), designed to be an open standard for social networking.

OnAir Post: Decentralized Social Network Protocols

News

Today, Project Liberty Institute is proud to launch a new report: “How Can Data Cooperatives Help Build a Fair Data Economy? Laying the Groundwork for a Scalable Alternative to the Centralized Digital Economy,” in collaboration with the Decentralization Research Center.

Released during the UN’s 2025 International Year of Cooperatives, this report marks a pivotal moment to acknowledge the global impact of cooperatives and reimagine their role in shaping a more democratic and equitable digital future. It examines how the cooperative model with hundreds of years of legacy is evolving, highlighting a diverse set of models, from cooperative and hybrid approaches being tested today to startups and digital platforms, as well as legacy co-ops experimenting with new infrastructure and legal frameworks.

It includes case studies, authored by their founders and executive leaders, from across various sectors: from legacy cooperatives in agriculture and finance to emerging data cooperatives focused on digital art and online browsers. These examples range from long-established institutions to brand-new experiments, illustrating the flexibility and adaptability of cooperative approaches in the data economy.

Key Insights:

  • Data as a collective resource: Individual data rights and consent frameworks are not enough. Data’s real value comes from being pooled thus making collective models like co-ops a powerful alternative.
  • Scale out, rather than scale up: Co-ops grow through networks, not monopolies. This allows for decentralized, context-driven, and democratic governance that reflects the nature of data itself.
  • Quality data is needed for better AI: The shared ownership provided by the coop model ensures those who generate it share its benefits. Co-ops incentivize quality, trustworthy data, making them uniquely aligned with both ethical AI development and fairer outcomes for contributors.
  • Shaping markets, not just regulating them: Policy has supported cooperatives, making them a legacy model; it should do the same with data cooperatives. Governments must move beyond ex-post and punitive regulation only and act as proactive market shapers to support cooperative infrastructure.

About

Source: Gemini AI Overview

Key Concepts

  • Decentralization

    Unlike traditional social networks, decentralized platforms operate on a network of independent servers or nodes, rather than a single, centralized authority. 

  • User Control

    Users have greater control over their data, identity, and social connections, often through technologies like self-sovereign identity. 

  • Interoperability

    Decentralized protocols like DSNP aim to enable communication and data sharing between different platforms, creating a more connected ecosystem. 

  • Censorship Resistance

    The distributed nature of these networks makes it more difficult for any single entity to censor or control content. 

  • Blockchain Integration

    Some decentralized social networks utilize blockchain technology to secure and store data, ensuring transparency and immutability. 

Examples of Protocols and Platforms

  • DSNP (Decentralized Social Networking Protocol)
    Aims to be a foundational protocol for decentralized social networking, enabling interoperability and user control. 
  • ActivityPub
    A decentralized social networking protocol, enabling interoperability between different platforms. 
  • The Fediverse
    A collection of interconnected servers using protocols like ActivityPub, creating a network of federated social networks. 
  • Lens Protocol

    A decentralized social graph protocol, allowing developers to build social applications on top of it. 

  • Mastodon

    A popular federated social network based on ActivityPub. 

  • Steemit
    A blockchain-based social media platform where users can earn cryptocurrency for content creation. 

Benefits of Decentralized Social Networks

  • Increased user privacy and security
    Decentralization can enhance user anonymity and reduce the risk of data breaches. 

  • Greater user control over data and identity
    Users can choose which platforms to use and how their data is shared. 

  • Censorship resistance
    Decentralized networks are less susceptible to censorship attempts. 

  • Interoperability
    Users can interact with others across different platforms, breaking down silos. 

  • Potential for new business models
    Blockchain-based platforms can offer new ways for users to monetize their content and contributions. 

Challenges

Decentralized social networks (DeSoc) aim to address the limitations of centralized platforms by emphasizing user control, privacy, and censorship resistance. However, they face several significant challenges that hinder their widespread adoption and success.

Initial Source for content: Gemini AI Overview 7/23/25

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1. User experience and adoption

  • Complexity
    Many decentralized platforms require users to understand technical concepts like blockchain technology, digital wallets, and private key management, which can be daunting for mainstream users.

  • Onboarding Friction
    The process of joining decentralized networks, including setting up wallets, acquiring crypto, and navigating different layer-2 solutions, can be cumbersome compared to the seamless experience offered by centralized platforms.

  • Network Effects
    Attracting a critical mass of users to achieve the network effects that drive value and adoption is a major hurdle for new decentralized platforms, according to Smart Sight Innovations.

  • Competition
    DeSoc platforms face intense competition from established centralized platforms with vast user bases and refined user interfaces.

2. Scalability and performance

  • Decentralization vs. Scalability
    Achieving both decentralization and high performance (speed and throughput) is a fundamental challenge, often referred to as the blockchain trilemma.

  • Transaction Processing
    Blockchain-based platforms, on which many DeSoc networks are built, can struggle to handle a large volume of transactions, leading to slow processing times and high fees, says Built In.

  • Data Management
    Storing and managing vast amounts of user-generated content in a decentralized network presents complex issues related to storage redundancy, data availability, and efficiently synchronizing data across nodes.

3. Content moderation and governance

  • Balancing Freedom and Safety
    While promoting free speech is a key objective, decentralized networks face the challenge of moderating harmful content (like hate speech and misinformation) without resorting to centralized control.

  • Fragmented Moderation
    The distributed nature of some platforms, where different servers (instances) might have their own moderation rules, can lead to inconsistencies and confusion for users, according to FeedHive.

  • Effective Governance
    Establishing governance mechanisms that are both decentralized and effective in making decisions, resolving disputes, and enforcing policies is a complex task.

4. Interoperability

  • Siloed Blockchains
    The lack of standardized protocols and diverse technical architectures between different blockchains hinders seamless communication and interaction between decentralized applications.

  • Cross-Chain Challenges
    Enabling assets and data to be transferred easily and securely between different networks requires overcoming technical, security, and potential regulatory hurdles.

5. Privacy and security

  • User Data Control
    While users have more ownership of their data on decentralized platforms, they also bear greater responsibility for securing it, as there’s no central authority to manage or recover lost data.

  • Decentralized Identity Management
    Relying on private keys for account access means users risk losing access to their accounts permanently if they lose their keys.

  • Smart Contract Vulnerabilities
    Flaws in smart contract code can create security loopholes that malicious actors could exploit.

6. Regulatory uncertainty

  • Evolving Regulations
    The regulatory landscape surrounding decentralized technologies is still developing, creating uncertainty for platform developers and users.

  • Jurisdictional Differences
    Regulations and legal frameworks can vary significantly across different jurisdictions, complicating compliance and accountability, according to Agility PR Solutions.

7. Financial sustainability

  • Monetization Models
    Developing sustainable business and monetization models that don’t compromise decentralization principles is a key challenge, particularly for platforms seeking to compete with ad-revenue driven centralized networks.

  • Market Volatility
    Platforms reliant on cryptocurrencies may face challenges due to market fluctuations and bear markets, impacting the value of incentives and rewards.
     

Innovations

Decentralized Social Network Protocols (DSNPs) like the DSNP aim to address concerns about data ownership, privacy, and censorship in traditional social media platforms. While promising, DSNPs face challenges that researchers and innovators are actively working to overcome.

Initial Source for content: Gemini AI Overview  7/23/25

[Enter your questions, feedback & content (e.g. blog posts, Google Slide or Word docs, YouTube videos) on innovative research related to this post in the “Comment” section below.  Post curators will review your comments & content and decide where and how to include it in this section.]

1. Scalability and performance

  • Challenge
    As the number of users grows, DSNPs struggle to maintain performance due to high transaction costs and data processing demands.

  • Solutions
    • Layer 2 Solutions
      Techniques like sharding and off-chain transactions are being explored to enhance transaction throughput and reduce costs.

    • Optimized Protocol Design
      Protocols like DSNP are designed for efficient data storage and retrieval, and the development of specialized blockchains like Frequency aim to support high-volume social applications.
       
    • Distributed Storage
      Utilizing networks like IPFS, Filecoin, and Arweave helps distribute data storage, improve resilience, and potentially lower costs.

2. Content moderation and governance

  • Challenge
    The absence of a central authority makes it difficult to moderate content, address hate speech and misinformation, and manage disputes effectively.
     
  • Solutions
    • Community-Driven Moderation
      DSNPs are exploring models where users participate in moderation through voting mechanisms, flagging systems, and community-set guidelines, according to a study.
       
    • Reputation Systems
      Implementing reputation systems that track user behavior and engagement can help identify and mitigate malicious actors.
       
    • Moderation Tooling
      Research focuses on developing tools and interfaces that empower communities to manage moderation effectively.

3. User experience and adoption

  • Challenge
    Technical complexities and a lack of user-friendly interfaces hinder broader adoption of DSNPs.
     
  • Solutions
    • Simplified Interfaces
      Developers are working on creating intuitive and familiar user interfaces for DSNPs to reduce the learning curve.
       
    • Seamless Integration
      Enabling easier migration from centralized platforms and integrating DSNP functionalities into existing applications can facilitate adoption.
       
    • Education and Awareness
      Efforts are being made to educate users about the benefits of DSNPs, such as enhanced privacy and control, says www.finatech.io.

4. Interoperability

  • Challenge
    The fragmented nature of DSNPs can create silos, limiting the ability of users and applications to interact seamlessly.
  • Solutions
    • Open Protocols and Standards
      DSNPs like the DSNP aim to create open protocols that allow different applications and services to interoperate, enabling a unified social experience.
       
    • Cross-Chain Compatibility
      Building solutions like Chainlink that bridge different blockchains can foster interoperability and enhance data accessibility.
       
    • Universal Identities
      Developing decentralized identity solutions like DIDs and VCs can allow users to maintain a single, self-sovereign identity across different platforms.
       

Projects

Initial Source for content: Gemini AI Overview  7/23/25

[Enter your questions, feedback & content (e.g. blog posts, Google Slide or Word docs, YouTube videos) on current and future projects implementing solutions to this post challenges in the “Comment” section below.  Post curators will review your comments & content and decide where and how to include it in this section.]

1. Addressing Scalability

  • Lens Protocol
    Built on the Polygon blockchain, Lens uses a proof-of-stake (PoS) model to handle transactions efficiently and is working on scaling solutions like sharding and layer-2 scaling technologies.

  • Bluesky (AT Protocol)
    Focusing on building an open and federated protocol for large-scale distributed social applications, according to Coinbound, Bluesky emphasizes user-friendly interfaces to encourage wider adoption and alleviate usability challenges associated with decentralized platforms.

2. Enhancing User Experience

  • Bluesky (AT Protocol)
    Actively tackling usability issues with user-friendly interfaces and features like “starter packs” to guide new users, says www.hireawriter.us.

  • Lens Protocol
    Its modular framework allows developers to easily build and extend functionalities, creating a more adaptable and user-friendly experience.

3. Improving Content Moderation and Governance

  • DSNP (Decentralized Social Networking Protocol)
    Aims to decouple applications and data, creating a universally accessible social graph. This allows for diverse applications with varying moderation systems and user personalization algorithms, reducing reliance on a single platform’s content policies.

  • Farcaster
    Focused on protocol-first development, allowing developers to build various clients on top of it. This fosters client diversity, potentially enabling a marketplace where different moderation and recommendation systems compete for users’ preferences.

  • Decentralized Autonomous Organizations (DAOs)
    Some platforms like Mirror are using DAOs to empower communities in decision-making and content governance, according to Coinbound.

4. Fostering Data Ownership and Privacy

  • Mastodon, Minds, Diaspora, Peepeth, and others
    These projects empower users to own and control their data, choose what information to share, and with whom, notes Shardeum.

  • Blockchain and Distributed Ledger Technology
    Underpin many DSNPs, ensuring data security through immutable ledgers and reducing the risk of data breaches and manipulation.

  • Privacy-Centric Innovations
    Platforms like Minds integrate cryptocurrency tokens for private transactions and focus on minimized data collection and encryption techniques.

5. Incentivizing Creators and Users

  • Steemit
    Was one of the first platforms to reward users with tokens (Steem) for creating and curating content, according to Coinbound.

  • Lens Protocol
    Allows users to earn MATIC tokens for active participation and transactions within the ecosystem.

  • Taskon
    Rewards users for completing various Web3 tasks in a decentralized way.

6. Promoting Interoperability

  • DSNP
    Aims to provide a shared social layer, analogous to SMTP for email, allowing for an open ecosystem of interoperable apps and services that can connect to the underlying social graph.

  • Protocols enabling DSNPs to connect
    Under development to allow seamless user engagement across different decentralized platforms.