In a strategic move to establish itself as a competitor to Instagram, Meta is set to release its anticipated Threads app, while simultaneously announcing more funding for Bluesky, a decentralised social network protocol aiming to provide an alternative to traditional social media platforms. This article explores the recent developments of both initiatives and highlights Bluesky’s unique approach to sustaining a social network without relying on advertising revenue. Additionally, the article delves into Bluesky’s new paid service, offering users the option to acquire custom domains for enhanced personalization and ease of use.
Bluesky Secures Seed Funding:
Recently transitioned from a public benefit LLC to a public benefit C Corp, raising a substantial $8 million in seed funding during this transition. The round was led by Neo, a community-led company, with prominent investors such as Ali Partovi, co-founder of Code.org, and Suzanne Xie, a former product manager at Twitter. Notable angel investors, including Joe Beda, co-creator of Kubernetes, Bob Young of Red Hat, and Amjad Masad of Replit, among others, also joined the seed round. Bluesky plans to utilize the funds to expand its team, invest in infrastructure, and further enhance its AT Protocol, which underpins the functionality of the Bluesky app.
Bluesky’s Unique Approach to Monetization:
Unlike traditional social media platforms, Bluesky is determined to develop a fundamentally different business model. The company recognizes the pitfalls of relying solely on advertising revenue, where users often become the product. Bluesky envisions a social network where users maintain ownership of their data and have the freedom to leave the platform at any time. Consequently, Bluesky aims to explore alternative strategies and services to provide genuine value to its users while ensuring the sustainability of its social network.
Bluesky’s First Paid Service: Custom Domains:
In partnership with Namecheap, a leading name registrar, Bluesky is introducing its first paid service offering: custom domains. Prior to this announcement, Bluesky allowed its 100,000+ users to set custom names as their handles, with over 13,000 users having already taken advantage of this feature. However, the previous process required users to possess knowledge of domain registrars and DNS settings. The new paid service aims to streamline this process, allowing users to set up a custom name within minutes. Bluesky has not disclosed the specifics of its partnership with Namecheap but it is anticipated that it involves a revenue-sharing arrangement for domain name purchases.
Bluesky Future Expansion and Improvements:
Bluesky acknowledges the potential for further expansion and improvement of its services. While the company has not provided specific details about the additional bundled services it plans to offer users, it has expressed a commitment to exploring such possibilities. Recent updates to the platform include the introduction of custom feeds and revised moderation policies, with Bluesky actively seeking feedback from a wider audience. The company recognizes the importance of addressing concerns related to decentralization and moderation, particularly in relation to combating hate speech, in order to retain its user base.
Conclusion:
As Meta gears up to launch Threads as a competitor to Instagram, Bluesky secures seed funding and introduces its first paid service, custom domains. Bluesky’s innovative approach to sustaining a social network without relying on advertising revenue sets it apart from traditional platforms. By enabling users to maintain ownership of their data and exploring alternative monetization strategies, Bluesky aims to provide real value to its users. The introduction of custom domains in partnership with Namecheap adds a new dimension of personalization and convenience to the Bluesky experience. As Bluesky continues to expand and improve, it remains committed to addressing user feedback and ensuring a safe and inclusive environment for its growing community.
