GroupFi protocol is two weeks away from its internal beta release!
As we approach this milestone, we’re eager to share more about our journey and vision for GroupFi, especially why we’ve chosen IOTA to bring our dream dApp to life. Let’s dive in!
The story of GroupFi began back in 2022.
After years of deep involvement in the crypto world,we began pondering the means to connect Web3 technologies with the broader public, and the solution became clear: social networks. Interestingly, we noticed a notable absence of a genuine Web3 social product due to cost constraints and scalability issues.
However, the Tangle, IOTA’s innovative structure, emerged as the perfect solution to tackle these challenges. Here is why we are bullish on IOTA and how GroupFi aims to revolutionize social networking on the decentralized web!
- The answer to the dilemma: on-chain cost-free communication
For a real Web3 messaging system to truly succeed, it must meet specific criteria:
- Each message and operation should be registered as an independent transaction on the chain.
- Users must maintain ownership of their data.
Web2 social media has conditioned users to expect free access to social products. Web3 users share this expectation while also emphasizing data ownership and decentralization. This poses a significant dilemma for Web3 social platforms: how to remain free and on-chain simultaneously?
While many blockchain products impose gas fees for transactions, achieving complete fee-free communication has been elusive. Even if the costs are minimal, there’s still a distinction between being completely free and merely cheap “enough” (but for how long?) for a messaging platform.
This challenge hampers the scalability of Web3 social products. To address this, various projects attempt to offer free messaging by subsidizing users’ chain usage fees. However, this approach compromises users’ genuine ownership of their data.
The Tangle presents an elegant solution to these challenges:
- Transactions on the Tangle incur no fees, and while storage requires the use of SMR/IOTA as a storage deposit, these can be reclaimed. Users only need to make an initial investment in SMR/IOTA to acquire storage space and assert ownership over their data. This storage space is permanent, allowing users to continuously manage their data without incurring additional charges.
- Additionally, the initial investment in SMR/IOTA can potentially appreciate in value, giving users a stake in the network. This empowers users to enjoy free messaging on GroupFi while potentially benefiting from the increased value of their investment.
2. Infinite scalability
Web2 social networks cater to billions of users, generating a massive volume of data daily, and Web3 social networking is expected to operate on a similar scale. With users maintaining control over their data, numerous AI services relying on personal and social data can emerge on the blockchain. The next-generation Web3 social protocol must be highly scalable to support such applications.
Traditional blockchains adhere to strict transaction orderability, with blocks interconnected strictly one by one based on timestamps. While suitable for scenarios with strict time dependencies, such as some financial scenarios, this orderability leads to bottlenecks in concurrency. This can limit the development of various scenarios.
In contrast, systems like The Tangle, a Directed Acyclic Graph (DAG), offer infinite scalability from a concurrency standpoint. DAG allows for multiple transactions to exist concurrently, making it ideal for scenarios like social networking, where individual message sorting isn’t essential. We can truly envision a future within Groupfi, where countless messages atomically run on The Tangle every second.
By selecting SMR/IOTA as the backbone of GroupFi, we’re bridging the gap between user expectations and technical innovation. The seamless integration of cost-free messaging and unparalleled scalability promises not just a social network, but a paradigm shift in online interaction.
GroupFi isn’t just a product; it’s a testament to the transformative power of Web3, empowering users with ownership, freedom, and limitless potential.
Join us in shaping the future of social networking, where every message resonates through the infinite corridors of The Tangle!
To keep up with the latest update from GroupFi, follow us:
X: https://twitter.com/groupfi_ai
Github:https://github.com/TanglePay/GroupFi-trollbox
Official website: https://groupfi.ai/ You can now be an early tester for the alpha version ( supports Shimmer mainnet) and mint your free web3 name NFT! Don’t miss out!
