Investing in Neynar
nonce Classic is excited to announce our investment into Neynar alongside Coinbase Ventures, Zee Prime Capital, Orange DAO, Hypersphere, Social Graph Ventures, a16z crypto CSX, Balaji and more.
The potential uses of social data such as following, liking, and casting, are incredibly vast. However, social data of these sorts are not generated solely through social media platforms like Facebook or X. In fact, Facebook’s like button has already been integrated into millions of different websites. Despite this, such data is recorded on servers owned by centralized social platforms like Facebook, and access for external services is extremely gated. Hence on the other side of town, we have seen an emergence of protocols that build decentralized social graphs on the blockchain (i.e Farcaster and Lens) opening a new world of potential for social data.
To our dismay, DeSoc(Decentralized Social) is unlike centralized servers in that blockchain does not nicely index all social data. Even if one could access the desired on-chain data without specific authorization, it would be tremendously time-consuming. The API codes for such data are still in its early adaptations hence requiring frequent updates and careful management. To store data on the blockchain, a node must be operated or rented but operating a node can take about 4–5 hours just for initial setup and on the average incurs $100 in monthly costs, not to mention the hassle of never-ending maintenance.
Neynar solves all of these problems. Making development of social apps on decentralized social graphs like Farcaster easier than ever.
Understanding Farcaster
Before understanding Neynar, one must understand the structure of Farcaster, Web’s famous decentralized social graph. Farcaster at its core, stores social data by dividing it into off-chain and on-chain categories.
“On-chain” refers to Ethereum and its Layer 2, Optimism. Only critical behavior data that requires security and consistency, such as account creation, is stored on-chain. “Off-chain” refers to a P2P network composed of servers called Hubs. For behavior data that does not require strict consistency but for which performance and cost are important (e.g., posting comments, updating profile pictures), the data is stored off-chain.
Thus, Farcaster is merely a database that stores data efficiently in a decentralized manner. But therein exists a critical need for a solution like AWS that can support anyone who wants to build apps on top of such databases.
Enter Neynar
Neynar operates as middleware for Farcaster, providing relevant APIs and SDKs, as well as directly managing Farcaster’s hubs.
Developers using Neynar’s API, SDK, and Hub can leverage the following features:
1) Reading data from Farcaster
Developers can access structured data, allowing them to instantly query the desired information. For instance, trendy casts(posts) from the Warpcast can be retrieved for viewing in external apps. Additionally, data analysis platforms like Dune analytics can customize, analyze, and visualize data stored in Farcaster.
2) Writing data to Farcaster
Since Neynar operates both Node and Hub, it guarantees the on-chain confirmation of transactions and the storage of data in Hubs. For example, when a new ID is created via an app using the Neynar SDK, information regarding this ID is registered in Farcaster’s on-chain database. This ID, added to Farcaster’s decentralized social graph, can now be used across all Farcaster-based services. Moreover, Neynar supports writing features for external apps! Users can write casts(posts) to Warpcast directly from their own app, as shown below.
3) Frame studio for Farcaster
The best example of utilizing the two functions (read & write) described above is Farcaster’s Frame. Launched by Farcaster in Feb. this year, Frame is a feature that transforms a Cast (Post) into a mini-interactive application, leading to a 400% increase in daily users of Farcaster immediately after its launch. Frame allows users to engage in activities such as issuing NFTs, claiming tokens, trading digital assets, and responding to surveys without leaving the app or signing transactions. Furthermore, it enables the integration of mini-games into the social feed. Neynar is the most optimized tool for creating Frames, allowing for the creation of a Frame with just one API call through the Neynar’s API.
4) Sign in with Neynar
Lastly, to facilitate smooth user access to reading and writing data on Farcaster within apps, Neynar supports the Sign-in-with-Neynar (SIWN) service. SIWN allows developers who need read or write permissions from users to obtain these rights by simply calling the Neynar API on behalf of the user.
Neynar, Building a Hub for DeSoc
Neynar is a company co-founded by Rishav Mukherji and Manan Patel, two remarkable developers. The pair, having first met at Coinbase, spent four years building products from scratch into industry-defining products that are now used by millions of users. Their time building at Coinbase, shipping products is the cornerstone on which Neynar has been borne.
Leaving their mark at Coinbase, the two began working on an NFT-based social media project. However, upon discovering the lack of infrastructure in the Web3 social market, they quickly pivoted to Neynar as we know it today. During their first two-week beta test, Neynar secured more than ten B2B paying customers without any marketing efforts, demonstrating the Web3 social market’s dire need for a solution like Neynar.
Neynar has continued to show steady growth since its official launch. Today, Web3 projects such as Frens, Launchcaster, Dune and other notables are using Neynar. And as the Farcaster ecosystem expands(see the below image!), the demand for Neynar as a foundational infrastructure will rightfully grow. In the near future, we look forward to seeing Neynar extend its reach as a hub for other decentralized social graphs like Lens and XMTP.
The potential found is endless with a strong market need. With dedicated backers and a determined team we look forward to seeing the growth of decentralized social accelerated by Neynar.
About nonce Classic
nonce Classic is a VC/accelerator borne out of Seoul’s largest Web3 hacker house. Backed by a strong alliance of builders and angels, nonce Classic lays out a bedrock for founders by providing a strong community of like-minded people
Website: https://nonceclassic.org/main
Twitter: https://twitter.com/nonceclassic
Disclaimer: This article is for general information purposes only and is not investment advice or solicitation. You should consult a professional for investment decisions or advice. The information contained herein has been obtained from other sources, but nonce Classic has not independently verified it and makes no warranty as to its accuracy or suitability. This article reflects the opinions of the author and does not necessarily reflect the opinions of others associated with nonce Classic. Opinions are subject to change at any time without notice.
