The web3 world has been eagerly anticipating a blockchain-based consumer application that could bring crypto technology to the masses. Farcaster hopes to achieve this through its network.
For many crypto native users, having a quick and simple onboarding experience is often a rarity. However, when I tested Farcaster, a network for decentralized social applications, the process was remarkably smooth.
It took me only four minutes to set up an account from start to finish. Farcaster addressed the cold start problem by populating my feed. By the time my account was live, I was following 60 accounts, which I assume came from my selected interests beforehand. I also had one follower. You can follow me here.
Farcaster does not require users to sign up with a crypto wallet, as explained by one of the network’s co-founders, Dan Romero, in a post on X. According to Romero, the goal is to facilitate quick onboarding by making the process as Web 2.0 as possible – mobile-first, without the need for a wallet or crypto.
Farcaster is a network that currently hosts several apps. The most prominent application on Farcaster is Warpcast, a platform with features similar to X’s or Reddit’s, allowing users to write posts, or “casts,” and perform other functions such as minting NFTs, claiming tokens, and transacting.
Image Credits: Jacquelyn Melinek (opens in a new window)
Farcaster is expected to become more robust over time. According to its documentation page, as a public and decentralized network, anyone can build an app to read and write data. Users own their accounts and relationships with other users and can freely switch between different apps. This is a common practice for protocols or decentralized networks that allow other applications to leverage their technology.
Given that the application is decentralized and public, both developers and users can create network-connected applications, paving the way for more social media-like activities.
Rapid Growth
Farcaster, founded by former Coinbase employees Romero and Varun Srinivasan in 2020, did not experience rapid growth initially. However, the network has witnessed a 10x increase in daily active users (DAU) over the past 14 days, as shared by Romero on Tuesday.
Currently, Farcaster has over 61,500 DAU, thanks to a significant growth driven by an application update called Frames, which attracted a new user base with its ability to turn any “cast” into an interactive app.
A day before the launch of Frames on January 25, Farcaster had approximately 2,200 DAU on a seven-day average, according to Dune analytics user pixelhack. As of now, over 140,000 users have signed up for Farcaster, which is a modest number compared to traditional social media networks, but it represents significant momentum in the crypto world.
The chart below illustrates Farcaster’s current surge:
Image Credits: Data from Dune user pixelhack (opens in a new window)
On that note, Frames was launched on January 26, enabling users to perform various activities on-chain or off-chain without leaving Farcaster.
For crypto enthusiasts, this development is significant as it eliminates the need to switch between multiple apps to complete a transaction. Additionally, Romero mentioned on X in late January that the built-in authorization system in the ecosystem reduces security risks and is “not spooftable,” although this claim will be tested more frequently as the network grows.
For general users, despite being built on Optimism, a layer 2 blockchain focusing on scaling the Ethereum network, Farcaster delivers a Web 2.0-like experience.
To join the application, users need a U.S.-based phone number for free sign-up, or they can pay $5 for an in-app purchase, or have a friend already on the app pay $3 for their invite. While the associated cost may be bothersome to some, it is Farcaster’s effort to prevent bot activity, often seen on other social networks. The service also limits the number of “casts” users can post on the network’s applications, potentially curbing the reach and effectiveness of bots that often target crypto posts on X.
Being decentralized and incorporating crypto-related features, users can purchase warps, its in-app currency, to “perform a variety of on-chain and Warpcast-specific actions,” such as creating a channel on Farcaster to connect users with shared interests. This costs 2,500 warps ($25) annually. Additionally, users can earn 50 warps by inviting friends via their link, which is a common rewards-based tactic used by web3 and traditional apps to boost adoption.
Compared to other web3 social applications such as Aave’s Lens protocol or Friend.tech, Farcaster’s strategy is unique. While those platforms emphasize using blockchains and web3 technology for a social experience, Farcaster focuses on Web 2.0 strategies with added blockchain capabilities, enabling users to control their data, ensuring application interoperability on the network, and preventing censorship.
Lessons to Learn
Although Farcaster is experiencing rapid growth, it will be essential to gather more data over an extended period to assess its long-term success and its potential to transform mainstream crypto adoption. Historically, we have seen some crypto-friendly social projects experience quick rises followed by rapid declines.
For instance, Friend.tech experienced a sudden surge in transactions and growth in August, but within weeks, these indicators plummeted, according to Dune analytics user cryptokoryo. Similarly, many people have accounts on platforms like Bluesky, Threads, Mastodon, and the like, but after the initial hype around a new network subsides, daily user engagement may dwindle.
To sustain continued growth, networks and projects must continually release new upgrades, applications, or tools to engage users. Additionally, the core loop must be based on more than speculation to endure, as demonstrated by previous web3 experiments in social networks.
Presently, Frames’ on-chain functionality is only available for Ethereum-connected networks, but the founders have indicated that support will expand to other blockchains, such as Solana, as shared by Romero on X. “People are asking for it. So we ship,” he added.
