An approximate introduction to how zk-SNARKs are possible (part 2)
If tasked with the problem of coming up with a zk-SNARK protocol, many people would make their way to this point and then get stuck and give up. How can a verifier possibly check every single piece of the computation, without looking at each piece of the computation individually? But it turns out that there is a clever solution.
Polynomials
Polynomials are a special class of algebraic expressions of the form:
- x+5
- x^4
- x^3+3x^2+3x+1
- 628x^{271}+318x^{270}+530x^{269}+…+69x+381
i.e. they are a sum of any (finite!) number of terms of the form cx^k
There are many things that are fascinating about polynomials. But here we are going to zoom in on a particular one: polynomials are a single mathematical object that can contain an unbounded amount of information (think of them as a list of integers and this is obvious). The fourth example above contained 816 digits of tau, and one can easily imagine a polynomial that contains far more.
Furthermore, a single equation between polynomials can represent an unbounded number of equations between numbers. For example, consider the equation A(x)+ B(x) = C(x). If this equation is true, then it's also true that:
- A(0)+B(0)=C(0)
- A(1)+B(1)=C(1)
- A(2)+B(2)=C(2)
- A(3)+B(3)=C(3)
And so on for every possible coordinate. You can even construct polynomials to deliberately represent sets of numbers so you can check many equations all at once. For example, suppose that you wanted to check:
- 12+1=13
- 10+8=18
- 15+8=23
- 15+13=28
You can use a procedure called Lagrange interpolation to construct polynomials A(x) that give (12,10,15,15) as outputs at some specific set of coordinates (eg. (0,1,2,3)), B(x) the outputs (1,8,8,13) on thos same coordinates, and so forth. In fact, here are the polynomials:
- A(x)=-2x^3+\frac{19}{2}x^2-\frac{19}{2}x+12
- B(x)=2x^3-\frac{19}{2}x^2+\frac{29}{2}x+1
- C(x)=5x+13
Checking the equation A(x)+B(x)=C(x) with these polynomials checks all four above equations at the same time.
Comparing a polynomial to itself
You can even check relationships between a large number of adjacent evaluations of the same polynomial using a simple polynomial equation. This is slightly more advanced. Suppose that you want to check that, for a given polynomial F, F(x+2)=F(x)+F(x+1) with the integer range {0,1…89} (so if you also check F(0)=F(1)=1, then F(100) would be the 100th Fibonacci number)
As polynomials, F(x+2)-F(x+1)-F(x) would not be exactly zero, as it could give arbitrary answers outside the range x={0,1…98}. But we can do something clever. In general, there is a rule that if a polynomial P is zero across some set S=\{x_1,x_2…x_n\} then it can be expressed as P(x)=Z(x)*H(x), where Z(x)=(x-x_1)*(x-x_2)*…*(x-x_n) and H(x) is also a polynomial. In other words, any polynomial that equals zero across some set is a (polynomial) multiple of the simplest (lowest-degree) polynomial that equals zero across that same set.
Why is this the case? It is a nice corollary of polynomial long division: the factor theorem. We know that, when dividing P(x) by Z(x), we will get a quotient Q(x) and a remainder R(x) is strictly less than that of Z(x). Since we know that P is zero on all of S, it means that R has to be zero on all of S as well. So we can simply compute R(x) via polynomial interpolation, since it's a polynomial of degree at most n-1 and we know n values (the zeros at S). Interpolating a polynomial with all zeroes gives the zero polynomial, thus R(x)=0 and H(x)=Q(x).
Going back to our example, if we have a polynomial F that encodes Fibonacci numbers (so F(x+2)=F(x)+F(x+1) across x=\{0,1…98\}), then I can convince you that F actually satisfies this condition by proving that the polynomial P(x)=F(x+2)-F(x+1)-F(x) is zero over that range, by giving you the quotient:
H(x)=\frac{F(x+2)-F(x+1)-F(x)}{Z(x)}
Where Z(x) = (x-0)*(x-1)*…*(x-98).
You can calculate Z(x) yourself (ideally you would have it precomputed), check the equation, and if the check passes then F(x) satisfies the condition!
Now, step back and notice what we did here. We converted a 100-step-long computation into a single equation with polynomials. Of course, proving the N'th Fibonacci number is not an especially useful task, especially since Fibonacci numbers have a closed form. But you can use exactly the same basic technique, just with some extra polynomials and some more complicated equations, to encode arbitrary computations with an arbitrarily large number of steps.
see part 3
(Edited)
Hackernoon
3 years ago
👏 Awesome post! When is part 3 coming?
Trent Lapinski
3 years ago
Very complex topic, great explanation
More on Web3 & Crypto
Henrique Centieiro
3 years ago
DAO 101: Everything you need to know
Maybe you'll work for a DAO next! Over $1 Billion in NFTs in the Flamingo DAO Another DAO tried to buy the NFL team Denver Broncos. The UkraineDAO raised over $7 Million for Ukraine. The PleasrDAO paid $4m for a Wu-Tang Clan album that belonged to the “pharma bro.”
DAOs move billions and employ thousands. So learn what a DAO is, how it works, and how to create one!
DAO? So, what? Why is it better?
A Decentralized Autonomous Organization (DAO). Some people like to also refer to it as Digital Autonomous Organization, but I prefer the former.
They are virtual organizations. In the real world, you have organizations or companies right? These firms have shareholders and a board. Usually, anyone with authority makes decisions. It could be the CEO, the Board, or the HIPPO. If you own stock in that company, you may also be able to influence decisions. It's now possible to do something similar but much better and more equitable in the cryptocurrency world.
This article informs you:
DAOs- What are the most common DAOs, their advantages and disadvantages over traditional companies? What are they if any?
Is a DAO legally recognized?
How secure is a DAO?
I’m ready whenever you are!
A DAO is a type of company that is operated by smart contracts on the blockchain. Smart contracts are computer code that self-executes our commands. Those contracts can be any. Most second-generation blockchains support smart contracts. Examples are Ethereum, Solana, Polygon, Binance Smart Chain, EOS, etc. I think I've gone off topic. Back on track. Now let's go!
Unlike traditional corporations, DAOs are governed by smart contracts. Unlike traditional company governance, DAO governance is fully transparent and auditable. That's one of the things that sets it apart. The clarity!
A DAO, like a traditional company, has one major difference. In other words, it is decentralized. DAOs are more ‘democratic' than traditional companies because anyone can vote on decisions. Anyone! In a DAO, we (you and I) make the decisions, not the top-shots. We are the CEO and investors. A DAO gives its community members power. We get to decide.
As long as you are a stakeholder, i.e. own a portion of the DAO tokens, you can participate in the DAO. Tokens are open to all. It's just a matter of exchanging it. Ownership of DAO tokens entitles you to exclusive benefits such as governance, voting, and so on. You can vote for a move, a plan, or the DAO's next investment. You can even pitch for funding. Any ‘big' decision in a DAO requires a vote from all stakeholders. In this case, ‘token-holders'! In other words, they function like stock.
What are the 5 DAO types?
Different DAOs exist. We will categorize decentralized autonomous organizations based on their mode of operation, structure, and even technology. Here are a few. You've probably heard of them:
1. DeFi DAO
These DAOs offer DeFi (decentralized financial) services via smart contract protocols. They use tokens to vote protocol and financial changes. Uniswap, Aave, Maker DAO, and Olympus DAO are some examples. Most DAOs manage billions.
Maker DAO was one of the first protocols ever created. It is a decentralized organization on the Ethereum blockchain that allows cryptocurrency lending and borrowing without a middleman.
Maker DAO issues DAI, a stable coin. DAI is a top-rated USD-pegged stable coin.
Maker DAO has an MKR token. These token holders are in charge of adjusting the Dai stable coin policy. Simply put, MKR tokens represent DAO “shares”.
2. Investment DAO
Investors pool their funds and make investment decisions. Investing in new businesses or art is one example. Investment DAOs help DeFi operations pool capital. The Meta Cartel DAO is a community of people who want to invest in new projects built on the Ethereum blockchain. Instead of investing one by one, they want to pool their resources and share ideas on how to make better financial decisions.
Other investment DAOs include the LAO and Friends with Benefits.
3. DAO Grant/Launchpad
In a grant DAO, community members contribute funds to a grant pool and vote on how to allocate and distribute them. These DAOs fund new DeFi projects. Those in need only need to apply. The Moloch DAO is a great Grant DAO. The tokens are used to allocate capital. Also see Gitcoin and Seedify.
4. DAO Collector
I debated whether to put it under ‘Investment DAO' or leave it alone. It's a subset of investment DAOs. This group buys non-fungible tokens, artwork, and collectibles. The market for NFTs has recently exploded, and it's time to investigate. The Pleasr DAO is a collector DAO. One copy of Wu-Tang Clan's "Once Upon a Time in Shaolin" cost the Pleasr DAO $4 million. Pleasr DAO is known for buying Doge meme NFT. Collector DAOs include the Flamingo, Mutant Cats DAO, and Constitution DAOs. Don't underestimate their websites' "childish" style. They have millions.
5. Social DAO
These are social networking and interaction platforms. For example, Decentraland DAO and Friends With Benefits DAO.
What are the DAO Benefits?
Here are some of the benefits of a decentralized autonomous organization:
- They are trustless. You don’t need to trust a CEO or management team
- It can’t be shut down unless a majority of the token holders agree. The government can't shut - It down because it isn't centralized.
- It's fully democratic
- It is open-source and fully transparent.
What about DAO drawbacks?
We've been saying DAOs are the bomb? But are they really the shit? What could go wrong with DAO?
DAOs may contain bugs. If they are hacked, the results can be catastrophic.
No trade secrets exist. Because the smart contract is transparent and coded on the blockchain, it can be copied. It may be used by another organization without credit. Maybe DAOs should use Secret, Oasis, or Horizen blockchain networks.
Are DAOs legally recognized??
In most counties, DAO regulation is inexistent. It's unclear. Most DAOs don’t have a legal personality. The Howey Test and the Securities Act of 1933 determine whether DAO tokens are securities. Although most countries follow the US, this is only considered for the US. Wyoming became the first state to recognize DAOs as legal entities in July 2021 after passing a DAO bill. DAOs registered in Wyoming are thus legally recognized as business entities in the US and thus receive the same legal protections as a Limited Liability Company.
In terms of cyber-security, how secure is a DAO?
Blockchains are secure. However, smart contracts may have security flaws or bugs. This can be avoided by third-party smart contract reviews, testing, and auditing
Finally, Decentralized Autonomous Organizations are timeless. Let us examine the current situation: Ukraine's invasion. A DAO was formed to help Ukrainian troops fighting the Russians. It was named Ukraine DAO. Pleasr DAO, NFT studio Trippy Labs, and Russian art collective Pussy Riot organized this fundraiser. Coindesk reports that over $3 million has been raised in Ethereum-based tokens. AidForUkraine, a DAO aimed at supporting Ukraine's defense efforts, has launched. Accepting Solana token donations. They are fully transparent, uncensorable, and can’t be shut down or sanctioned.
DAOs are undeniably the future of blockchain. Everyone is paying attention. Personally, I believe traditional companies will soon have to choose between adapting or being left behind.
Long version of this post: https://medium.datadriveninvestor.com/dao-101-all-you-need-to-know-about-daos-275060016663
Langston Thomas
3 years ago
A Simple Guide to NFT Blockchains
Ethereum's blockchain rules NFTs. Many consider it the one-stop shop for NFTs, and it's become the most talked-about and trafficked blockchain in existence.
Other blockchains are becoming popular in NFTs. Crypto-artists and NFT enthusiasts have sought new places to mint and trade NFTs due to Ethereum's high transaction costs and environmental impact.
When choosing a blockchain to mint on, there are several factors to consider. Size, creator costs, consumer spending habits, security, and community input are important. We've created a high-level summary of blockchains for NFTs to help clarify the fast-paced world of web3 tech.
Ethereum
Ethereum currently has the most NFTs. It's decentralized and provides financial and legal services without intermediaries. It houses popular NFT marketplaces (OpenSea), projects (CryptoPunks and the Bored Ape Yacht Club), and artists (Pak and Beeple).
It's also expensive and energy-intensive. This is because Ethereum works using a Proof-of-Work (PoW) mechanism. PoW requires computers to solve puzzles to add blocks and transactions to the blockchain. Solving these puzzles requires a lot of computer power, resulting in astronomical energy loss.
You should consider this blockchain first due to its popularity, security, decentralization, and ease of use.
Solana
Solana is a fast programmable blockchain. Its proof-of-history and proof-of-stake (PoS) consensus mechanisms eliminate complex puzzles. Reduced validation times and fees result.
PoS users stake their cryptocurrency to become a block validator. Validators get SOL. This encourages and rewards users to become stakers. PoH works with PoS to cryptographically verify time between events. Solana blockchain ensures transactions are in order and found by the correct leader (validator).
Solana's PoS and PoH mechanisms keep transaction fees and times low. Solana isn't as popular as Ethereum, so there are fewer NFT marketplaces and blockchain traders.
Tezos
Tezos is a greener blockchain. Tezos rose in 2021. Hic et Nunc was hailed as an economic alternative to Ethereum-centric marketplaces until Nov. 14, 2021.
Similar to Solana, Tezos uses a PoS consensus mechanism and only a PoS mechanism to reduce computational work. This blockchain uses two million times less energy than Ethereum. It's cheaper than Ethereum (but does cost more than Solana).
Tezos is a good place to start minting NFTs in bulk. Objkt is the largest Tezos marketplace.
Flow
Flow is a high-performance blockchain for NFTs, games, and decentralized apps (dApps). Flow is built with scalability in mind, so billions of people could interact with NFTs on the blockchain.
Flow became the NBA's blockchain partner in 2019. Flow, a product of Dapper labs (the team behind CryptoKitties), launched and hosts NBA Top Shot, making the blockchain integral to the popularity of non-fungible tokens.
Flow uses PoS to verify transactions, like Tezos. Developers are working on a model to handle 10,000 transactions per second on the blockchain. Low transaction fees.
Flow NFTs are tradeable on Blocktobay, OpenSea, Rarible, Foundation, and other platforms. NBA, NFL, UFC, and others have launched NFT marketplaces on Flow. Flow isn't as popular as Ethereum, resulting in fewer NFT marketplaces and blockchain traders.
Asset Exchange (WAX)
WAX is king of virtual collectibles. WAX is popular for digitalized versions of legacy collectibles like trading cards, figurines, memorabilia, etc.
Wax uses a PoS mechanism, but also creates carbon offset NFTs and partners with Climate Care. Like Flow, WAX transaction fees are low, and network fees are redistributed to the WAX community as an incentive to collectors.
WAX marketplaces host Topps, NASCAR, Hot Wheels, and cult classic film franchises like Godzilla, The Princess Bride, and Spiderman.
Binance Smart Chain
BSC is another good option for balancing fees and performance. High-speed transactions and low fees hurt decentralization. BSC is most centralized.
Binance Smart Chain uses Proof of Staked Authority (PoSA) to support a short block time and low fees. The 21 validators needed to run the exchange switch every 24 hours. 11 of the 21 validators are directly connected to the Binance Crypto Exchange, according to reports.
While many in the crypto and NFT ecosystems dislike centralization, the BSC NFT market picked up speed in 2021. OpenBiSea, AirNFTs, JuggerWorld, and others are gaining popularity despite not having as robust an ecosystem as Ethereum.
forkast
3 years ago
Three Arrows Capital collapse sends crypto tremors
Three Arrows Capital's Google search volume rose over 5,000%.
Three Arrows Capital, a Singapore-based cryptocurrency hedge fund, filed for Chapter 15 bankruptcy last Friday to protect its U.S. assets from creditors.
Three Arrows filed for bankruptcy on July 1 in New York.
Three Arrows was ordered liquidated by a British Virgin Islands court last week after defaulting on a $670 million loan from Voyager Digital. Three days later, the Singaporean government reprimanded Three Arrows for spreading misleading information and exceeding asset limits.
Three Arrows' troubles began with Terra's collapse in May, after it bought US$200 million worth of Terra's LUNA tokens in February, co-founder Kyle Davies told the Wall Street Journal. Three Arrows has failed to meet multiple margin calls since then, including from BlockFi and Genesis.
Three Arrows Capital, founded by Kyle Davies and Su Zhu in 2012, manages $10 billion in crypto assets.
Bitcoin's price fell from US$20,600 to below US$19,200 after Three Arrows' bankruptcy petition. According to CoinMarketCap, BTC is now above US$20,000.
What does it mean?
Every action causes an equal and opposite reaction, per Newton's third law. Newtonian physics won't comfort Three Arrows investors, but future investors will thank them for their overconfidence.
Regulators are taking notice of crypto's meteoric rise and subsequent fall. Historically, authorities labeled the industry "high risk" to warn traditional investors against entering it. That attitude is changing. Regulators are moving quickly to regulate crypto to protect investors and prevent broader asset market busts.
The EU has reached a landmark deal that will regulate crypto asset sales and crypto markets across the 27-member bloc. The U.S. is close behind with a similar ruling, and smaller markets are also looking to improve safeguards.
For many, regulation is the only way to ensure the crypto industry survives the current winter.
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Florian Wahl
3 years ago
An Approach to Product Strategy
I've been pondering product strategy and how to articulate it. Frameworks helped guide our thinking.
If your teams aren't working together or there's no clear path to victory, your product strategy may not be well-articulated or communicated (if you have one).
Before diving into a product strategy's details, it's important to understand its role in the bigger picture — the pieces that move your organization forward.
the overall picture
A product strategy is crucial, in my opinion. It's part of a successful product or business. It's the showpiece.
To simplify, we'll discuss four main components:
Vision
Product Management
Goals
Roadmap
Vision
Your company's mission? Your company/product in 35 years? Which headlines?
The vision defines everything your organization will do in the long term. It shows how your company impacted the world. It's your organization's rallying cry.
An ambitious but realistic vision is needed.
Without a clear vision, your product strategy may be inconsistent.
Product Management
Our main subject. Product strategy connects everything. It fulfills the vision.
In Part 2, we'll discuss product strategy.
Goals
This component can be goals, objectives, key results, targets, milestones, or whatever goal-tracking framework works best for your organization.
These product strategy metrics will help your team prioritize strategies and roadmaps.
Your company's goals should be unified. This fuels success.
Roadmap
The roadmap is your product strategy's timeline. It provides a prioritized view of your team's upcoming deliverables.
A roadmap is time-bound and includes measurable goals for your company. Your team's steps and capabilities for executing product strategy.
If your team has trouble prioritizing or defining a roadmap, your product strategy or vision is likely unclear.
Formulation of a Product Strategy
Now that we've discussed where your product strategy fits in the big picture, let's look at a framework.
A product strategy should include challenges, an approach, and actions.
Challenges
First, analyze the problems/situations you're solving. It can be customer- or company-focused.
The analysis should explain the problems and why they're important. Try to simplify the situation and identify critical aspects.
Some questions:
What issues are we attempting to resolve?
What obstacles—internal or otherwise—are we attempting to overcome?
What is the opportunity, and why should we pursue it, in your opinion?
Decided Method
Second, describe your approach. This can be a set of company policies for handling the challenge. It's the overall approach to the first part's analysis.
The approach can be your company's bets, the solutions you've found, or how you'll solve the problems you've identified.
Again, these questions can help:
What is the value that we hope to offer to our clients?
Which market are we focusing on first?
What makes us stand out? Our benefit over rivals?
Actions
Third, identify actions that result from your approach. Second-part actions should be these.
Coordinate these actions. You may need to add products or features to your roadmap, acquire new capabilities through partnerships, or launch new marketing campaigns. Whatever fits your challenges and strategy.
Final questions:
What skills do we need to develop or obtain?
What is the chosen remedy? What are the main outputs?
What else ought to be added to our road map?
Put everything together
… and iterate!
Strategy isn't one-and-done. Changes occur. Economies change. Competitors emerge. Customer expectations change.
One unexpected event can make strategies obsolete quickly. Muscle it. Review, evaluate, and course-correct your strategies with your teams. Quarterly works. In a new or unstable industry, more often.
Jerry Keszka
3 years ago
10 Crazy Useful Free Websites No One Told You About But You Needed
The internet is a massive information resource. With so much stuff, it's easy to forget about useful websites. Here are five essential websites you may not have known about.
1. Companies.tools
Companies.tools are what successful startups employ. This website offers a curated selection of design, research, coding, support, and feedback resources. Ct has the latest app development platform and greatest client feedback method.
2. Excel Formula Bot
Excel Formula Bot can help if you forget a formula. Formula Bot uses AI to convert text instructions into Excel formulas, so you don't have to remember them.
Just tell the Bot what to do, and it will do it. Excel Formula Bot can calculate sales tax and vacation days. When you're stuck, let the Bot help.
3.TypeLit
TypeLit helps you improve your typing abilities while reading great literature.
TypeLit.io lets you type any book or dozens of preset classics. TypeLit provides real-time feedback on accuracy and speed.
Goals and progress can be tracked. Why not improve your typing and learn great literature with TypeLit?
4. Calm Schedule
Finding a meeting time that works for everyone is difficult. Personal and business calendars might be difficult to coordinate.
Synchronize your two calendars to save time and avoid problems. You may avoid searching through many calendars for conflicts and keep your personal information secret. Having one source of truth for personal and work occasions will help you never miss another appointment.
https://calmcalendar.com/
5. myNoise
myNoise makes the outside world quieter. myNoise is the right noise for a noisy office or busy street.
If you can't locate the right noise, make it. MyNoise unlocks the world. Shut out distractions. Thank your ears.
6. Synthesia
Professional videos require directors, filmmakers, editors, and animators. Now, thanks to AI, you can generate high-quality videos without video editing experience.
AI avatars are crucial. You can design a personalized avatar using a web-based software like synthesia.io. Our avatars can lip-sync in over 60 languages, so you can make worldwide videos. There's an AI avatar for every video goal.
Not free. Amazing service, though.
7. Cleaning-up-images
Have you shot a wonderful photo just to notice something in the background? You may have a beautiful headshot but wish to erase an imperfection.
Cleanup.pictures removes undesirable objects from photos. Our algorithms will eliminate the selected object.
Cleanup.pictures can help you obtain the ideal shot every time. Next time you take images, let Cleanup.pictures fix any flaws.
8. PDF24 Tools
Editing a PDF can be a pain. Most of us don't know Adobe Acrobat's functionalities. Why buy something you'll rarely use? Better options exist.
PDF24 is an online PDF editor that's free and subscription-free. Rotate, merge, split, compress, and convert PDFs in your browser. PDF24 makes document signing easy.
Upload your document, sign it (or generate a digital signature), and download it. It's easy and free. PDF24 is a free alternative to pricey PDF editing software.
9. Class Central
Finding online classes is much easier. Class Central has classes from Harvard, Stanford, Coursera, Udemy, and Google, Amazon, etc. in one spot.
Whether you want to acquire a new skill or increase your knowledge, you'll find something. New courses bring variety.
10. Rome2rio
Foreign travel offers countless transport alternatives. How do you get from A to B? It’s easy!
Rome2rio will show you the best method to get there, including which mode of transport is ideal.
Plane
Car
Train
Bus
Ferry
Driving
Shared bikes
Walking
Do you know any free, useful websites?
Micah Daigle
3 years ago
Facebook is going away. Here are two explanations for why it hasn't been replaced yet.
And tips for anyone trying.
We see the same story every few years.
BREAKING NEWS: [Platform X] launched a social network. With Facebook's reputation down, the new startup bets millions will switch.
Despite the excitement surrounding each new platform (Diaspora, Ello, Path, MeWe, Minds, Vero, etc.), no major exodus occurred.
Snapchat and TikTok attracted teens with fresh experiences (ephemeral messaging and rapid-fire videos). These features aren't Facebook, even if Facebook replicated them.
Facebook's core is simple: you publish items (typically text/images) and your friends (generally people you know IRL) can discuss them.
It's cool. Sometimes I don't want to, but sh*t. I like it.
Because, well, I like many folks I've met. I enjoy keeping in touch with them and their banter.
I dislike Facebook's corporation. I've been cautiously optimistic whenever a Facebook-killer surfaced.
None succeeded.
Why? Two causes, I think:
People couldn't switch quickly enough, which is reason #1
Your buddies make a social network social.
Facebook started in self-contained communities (college campuses) then grew outward. But a new platform can't.
If we're expected to leave Facebook, we want to know that most of our friends will too.
Most Facebook-killers had bottlenecks. You have to waitlist or jump through hoops (e.g. setting up a server).
Same outcome. Upload. Chirp.
After a week or two of silence, individuals returned to Facebook.
Reason #2: The fundamental experience was different.
Even when many of our friends joined in the first few weeks, it wasn't the same.
There were missing features or a different UX.
Want to reply with a meme? No photos in comments yet. (Trying!)
Want to tag a friend? Nope, sorry. 2019!
Want your friends to see your post? You must post to all your friends' servers. Good luck!
It's difficult to introduce a platform with 100% of the same features as one that's been there for 20 years, yet customers want a core experience.
If you can't, they'll depart.
The causes that led to the causes
Having worked on software teams for 14+ years, I'm not surprised by these challenges. They are a natural development of a few tech sector meta-problems:
Lean startup methodology
Silicon Valley worships lean startup. It's a way of developing software that involves testing a stripped-down version with a limited number of people before selecting what to build.
Billion people use Facebook's functions. They aren't tested. It must work right away*
*This may seem weird to software people, but it's how non-software works! You can't sell a car without wheels.
2. Creativity
Startup entrepreneurs build new things, not copies. I understand. Reinventing the wheel is boring.
We know what works. Different experiences raise adoption friction. Once millions have transferred, more features (and a friendlier UX) can be implemented.
3. Cost scaling
True. Building a product that can sustain hundreds of millions of users in weeks is expensive and complex.
Your lifeboats must have the same capacity as the ship you're evacuating. It's required.
4. Pure ideologies
People who work on Facebook-alternatives are (understandably) critical of Facebook.
They build an open-source, fully-distributed, data-portable, interface-customizable, offline-capable, censorship-proof platform.
Prioritizing these aims can prevent replicating the straightforward experience users expect. Github, not Facebook, is for techies only.
What about the business plan, though?
Facebook-killer attempts have followed three models.
Utilize VC funding to increase your user base, then monetize them later. (If you do this, you won't kill Facebook; instead, Facebook will become you.)
Users must pay to utilize it. (This causes a huge bottleneck and slows the required quick expansion, preventing it from seeming like a true social network.)
Make it a volunteer-run, open-source endeavor that is free. (This typically denotes that something is cumbersome, difficult to operate, and is only for techies.)
Wikipedia is a fourth way.
Wikipedia is one of the most popular websites and a charity. No ads. Donations support them.
A Facebook-killer managed by a good team may gather millions (from affluent contributors and the crowd) for their initial phase of development. Then it might sustain on regular donations, ethical transactions (e.g. fees on commerce, business sites, etc.), and government grants/subsidies (since it would essentially be a public utility).
When you're not aiming to make investors rich, it's remarkable how little money you need.
If you want to build a Facebook competitor, follow these tips:
Drop the lean startup philosophy. Wait until you have a finished product before launching. Build it, thoroughly test it for bugs, and then release it.
Delay innovating. Wait till millions of people have switched before introducing your great new features. Make it nearly identical for now.
Spend money climbing. Make sure that guests can arrive as soon as they are invited. Never keep them waiting. Make things easy for them.
Make it accessible to all. Even if doing so renders it less philosophically pure, it shouldn't require technical expertise to utilize.
Constitute a nonprofit. Additionally, develop community ownership structures. Profit maximization is not the only strategy for preserving valued assets.
Last thoughts
Nobody has killed Facebook, but Facebook is killing itself.
The startup is burying the newsfeed to become a TikTok clone. Meta itself seems to be ditching the platform for the metaverse.
I wish I was happy, but I'm not. I miss (understandably) removed friends' postings and remarks. It could be a ghost town in a few years. My dance moves aren't TikTok-worthy.
Who will lead? It's time to develop a social network for the people.
Greetings if you're working on it. I'm not a company founder, but I like to help hard-working folks.