Decentralized SNS challenges Instagram and X amid user dissatisfaction

In response to government censorship of social media (SNS), 'decentralized SNS' are re-emerging. Developers of decentralized SNS argue that big tech corporations monopolize data and censor content, claiming that Instagram and X contradict 'SNS identity.' However, there are also analyses suggesting that, as with previous decentralized SNS, these platforms may only maintain temporary popularity if they fail to secure users and generate revenue.

◇ 'Decentralized SNS' emerged as a competitor to X... Users assigned servers

According to the industry on the 10th, the 'decentralized SNS' known as the Open Social Web refers to an SNS ecosystem where users can directly own and control their data and networks. Instagram and X have limited connectivity between platforms under big tech companies. Additionally, users are influenced by algorithms recommended by these corporations. However, with 'decentralized SNS', users can enjoy various platforms with one account, and since individuals operate servers, autonomy in algorithm creation is also guaranteed.

Decentralized SNS is not a new concept. Launched in 2016, 'Mastodon' is considered a pioneer of decentralized SNS. Developed by German software developer Eugen Rochko, Mastodon is based on its own protocol called 'ActivityPub.' Users of Mastodon can choose a federation server known as an 'instance' when creating an account, and algorithms are formed according to the characteristics of each instance. Threads, which emerged from Instagram, is also a decentralized SNS based on ActivityPub.

◇ Following emerging powerhouse 'Bluesky', new platforms based on AT Protocol appear

Recently emerged decentralized SNS platforms have been developed using the AT Protocol. The AT Protocol is an open-source protocol developed by the platform Bluesky to establish decentralized SNS. A protocol is an agreement that defines basic procedures or rules for controlling and managing the flow of messages between connected computers in a network.

With the AT Protocol, each user is assigned a server, and each server operates independently. Instagram and X own their servers as platforms. Under the AT Protocol, different servers exist in a federation form. In other words, users of decentralized SNS based on the AT Protocol can post their data to other platforms with one account. Additionally, advertisements placed by the platform do not appear on personal servers, allowing for transparency in algorithms.

Bluesky, which created the AT Protocol, is an SNS conceived by developer Jack Dorsey, former CEO of Twitter. Dorsey first introduced the Bluesky project internally in 2019 while he was serving as CEO of Twitter. At that time, Twitter was reported to adopt the Bluesky model. However, after Elon Musk acquired Twitter and transformed it into X, Dorsey parted ways with the company.

The recently prominent new platform following Bluesky is Pixelfed. Pixelfed, based on the AT Protocol, released its official mobile app for iOS and Android in January of this year. Similar to Instagram, Pixelfed allows users to share photos and videos and send messages between users.

TechCrunch, an IT media outlet, analyzed that decentralized SNS are gaining popularity as young generations rebel against censorship and data monopolization. TechCrunch noted that 'recently, investors have begun to pay attention to the growth potential of decentralized SNS,' adding that 'alternatives such as Bluesky and Mastodon are gaining popularity among users looking to leave X, and some developers are creating TikTok alternative apps based on open protocols to avoid censorship.'

◇ Instagram has 2 billion users... Insufficient as an alternative

However, the industry believes that decentralized SNS will struggle to replace existing platforms if they do not secure users. As of the 10th, Bluesky had recorded 31,271,886 users. Though this marks a 30% increase from two months ago (24 million users), it is still far from reaching Instagram's user count of 2 billion. Pixelfed has also only surpassed 500,000 users at the end of last month.

In the case of Mastodon, it attracted attention from users advocating for the freedom of SNS when Elon Musk acquired X in 2022, but as of the end of January this year, total registrations remained at approximately 9.35 million, with monthly active users (MAU) hovering around 1.01 million.

Decentralized SNS do not publish advertisements, which poses the risk of their revenue sources relying solely on investments. An IT industry official stated, 'While decentralized SNS align with the original identity of SNS as a platform for freedom of expression, it is difficult to generate revenue,' and added, 'Even if users are gathered, without paid models, it will be challenging to sustain the platform.'