• Startups use messaging channels built for cryptocurrencies

  • Crypto entrepreneurs believe that as the number of crypto users grows, so will the need for crypto-native communications platforms.

    Cryptocurrency is increasingly being used for purposes other than trading on exchanges. As the use of DAOs and NFTs grows, so does the necessity for them to communicate via a blockchain-based, wallet-connected platform.

    Elad Gil, a prominent entrepreneur, commented on the subject, saying:

    “Your bitcoin or crypto asset and mine were identical, so I would have less reason to ping an anonymous user via their wallet. But with DAOs, there is the need to coordinate with various members beyond just using Discord. With NFTs and collectibles, I may want to be able to ping you to buy or sell or trade, so there are other incentives for a communication layer to be useful.”

    Gil admitted to making an early investment in the web3 messaging service Lines. Gil made an investment substantial enough to head the $4 million seed round even though the platform’s technological layer is still in the early stages of development.

    According to Sahil Handa, CEO of Lines, more people are trading NFTs and casting votes every day. These people can’t be sure they’re speaking to the appropriate person when they try to converse with one another. With the help of token ownership, Lines wants to establish a platform where users may talk in groups or transfer messages from wallet to wallet. Users can confirm who they are speaking to in this way.

    Various comparable platforms

    Other than Lines, it appears that there are additional web3 messaging platforms. Gil stated, in reference to the rapidly developing tendency among start-ups:

    “’I’m aware of various teams working on identity, social layers, and communication on top of web3.”

    Nansen introduced a wallet-integrated messaging app for Web3 communities in June 2022, which was one of the most recent examples. The platform allows users to connect to groups based on the tokens or NFTs they own.

    Rarible, an NFT marketplace, launched a comparable concept in November 2021 before Nansen. Rarible, like Lines and Nansen’s apps, allowed users to chat with one another while knowing they were speaking to the appropriate person.

    Competing chat’s biggest players

    Onboarding a particular number of users is one of the biggest obstacles these platforms must face. Any new technology will be useless if the platform doesn’t have enough users.

    Integrating with well-known businesses like OpenSea will help these platforms succeed in the real world. However, only a large number of people using the platform will make this feasible.

    The communications services offered by Web3 will be fundamentally different from those offered by other well-known chat platforms like Telegram and Discord, where anyone can pretend to be someone else. Despite this, they will still have to contend with these industry titans, therefore web3 chat platforms must devise a cunning approach if they hope to survive.

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