23 posts tagged with "Web3"

We are excited to announce the launch of the Cuckoo Prediction Events API, expanding BlockEden.xyz's comprehensive suite of Web3 infrastructure solutions. This new addition to our API marketplace marks a significant step forward in supporting prediction market developers and platforms.

What is the Cuckoo Prediction Events API?​

The Cuckoo Prediction Events API provides developers with streamlined access to real-time prediction market data and events. Through a GraphQL interface, developers can easily query and integrate prediction events data into their applications, including event titles, descriptions, source URLs, images, timestamps, options, and tags.

Key features include:

• Rich Event Data: Access comprehensive prediction event information including titles, descriptions, and source URLs
• Flexible GraphQL Interface: Efficient querying with pagination support
• Real-time Updates: Stay current with the latest prediction market events
• Structured Data Format: Well-organized data structure for easy integration
• Tag-based Categorization: Filter events by categories like price movements, forecasts, and regulations

Example Response Structure​

{
  "data": {
    "predictionEvents": {
      "pageInfo": {
        "hasNextPage": true,
        "endCursor": "2024-11-30T12:01:43.018Z",
        "hasPreviousPage": false,
        "startCursor": "2024-12-01"
      },
      "edges": [
        {
          "node": {
            "id": "pevt_36npN7RGMkHmMyYJb1t7",
            "eventTitle": "Will Bitcoin reach $100,000 by the end of December 2024?",
            "eventDescription": "Bitcoin is currently making a strong push toward the $100,000 mark, with analysts predicting a potential price top above this threshold as global money supply increases. Market sentiment is bullish, but Bitcoin has faced recent consolidation below this key psychological level.",
            "sourceUrl": "https://u.today/bitcoin-btc-makes-final-push-to-100000?utm_source=snapi",
            "imageUrl": "https://crypto.snapi.dev/images/v1/q/e/2/54300-602570.jpg",
            "createdAt": "2024-11-30T12:02:08.106Z",
            "date": "2024-12-31T00:00:00.000Z",
            "options": [
              "Yes",
              "No"
            ],
            "tags": [
              "BTC",
              "pricemovement",
              "priceforecast"
            ]
          },
          "cursor": "2024-11-30T12:02:08.106Z"
        },
        {
          "node": {
            "id": "pevt_2WMQJnqsfanUTcAHEVNs",
            "eventTitle": "Will Ethereum break the $4,000 barrier in December 2024?",
            "eventDescription": "Ethereum has shown significant performance this bull season, with increased inflows into ETH ETFs and rising institutional interest. Analysts are speculating whether ETH will surpass the $4,000 mark as it continues to gain momentum.",
            "sourceUrl": "https://coinpedia.org/news/will-ether-breakthrough-4000-traders-remain-cautious/",
            "imageUrl": "https://crypto.snapi.dev/images/v1/p/h/4/top-reasons-why-ethereum-eth-p-602592.webp",
            "createdAt": "2024-11-30T12:02:08.106Z",
            "date": "2024-12-31T00:00:00.000Z",
            "options": [
              "Yes",
              "No"
            ],
            "tags": [
              "ETH",
              "priceforecast",
              "pricemovement"
            ]
          },
          "cursor": "2024-11-30T12:02:08.106Z"
        }
      ]
    }
  }
}

This sample response showcases two diverse prediction events - one about regulatory developments and another about institutional investment - demonstrating the API's ability to provide comprehensive market intelligence across different aspects of the crypto ecosystem. The response includes cursor-based pagination with timestamps and metadata like creation dates and image URLs.

This sample response shows two prediction events with full details including IDs, timestamps, and pagination information, demonstrating the rich data available through the API.

Who's Using It?​

We're proud to be working with leading prediction market platforms including:

• Cuckoo Pred: A decentralized prediction market platform
• Event Protocol: A protocol for creating and managing prediction markets

Getting Started​

To start using the Cuckoo Prediction Events API:

1. Visit the API Marketplace
2. Create your API access key
3. Make GraphQL queries using our provided endpoint

Example GraphQL query:

query PredictionEvents($after: String, $first: Int) {
  predictionEvents(after: $after, first: $first) {
    pageInfo {
      hasNextPage
      endCursor
    }
    edges {
      node {
        id
        eventTitle
        eventDescription
        sourceUrl
        imageUrl
        options
        tags
      }
    }
  }
}

Example variable:

{
  "after": "2024-12-01",
  "first": 10
}

About Cuckoo Network​

Cuckoo Network is pioneering the intersection of artificial intelligence and blockchain technology through a decentralized infrastructure. As a leading Web3 platform, Cuckoo Network provides:

• AI Computing Marketplace: A decentralized marketplace that connects AI computing power providers with users, ensuring efficient resource allocation and fair pricing
• Prediction Market Protocol: A robust framework for creating and managing decentralized prediction markets
• Node Operation Network: A distributed network of nodes that process AI computations and validate prediction market outcomes
• Innovative Tokenomics: A sustainable economic model that incentivizes network participation and ensures long-term growth

The Cuckoo Prediction Events API is built on top of this infrastructure, leveraging Cuckoo Network's deep expertise in both AI and blockchain technologies. By integrating with Cuckoo Network's ecosystem, developers can access not just prediction market data, but also tap into a growing network of AI-powered services and decentralized computing resources.

This partnership between BlockEden.xyz and Cuckoo Network represents a significant step forward in bringing enterprise-grade prediction market infrastructure to Web3 developers, combining BlockEden.xyz's reliable API delivery with Cuckoo Network's innovative technology stack.

Join Our Growing Ecosystem​

As we continue to expand our API offerings, we invite developers to join our community and help shape the future of prediction markets in Web3. With our commitment to high availability and robust infrastructure, BlockEden.xyz ensures your applications have the reliable foundation they need to succeed.

For more information, technical documentation, and support:

• Visit our API Marketplace
• Join our Discord community
• Follow us on Twitter

Together, let's build the future of prediction markets!

In 2024, something remarkable is happening: Big Tech is not just exploring blockchain; it's deploying critical workloads on Ethereum's mainnet. Microsoft processes over 100,000 supply chain verifications daily through their Ethereum-based system, JP Morgan's pilot has settled $2.3 billion in securities transactions, and Ernst & Young's blockchain division has grown 300% year-over-year building on Ethereum.

But the most compelling story isn't just that these giants are embracing public blockchains—it's why they're doing it now and what their $4.2 billion in combined Web3 investments tells us about the future of enterprise technology.

The Decline of Private Blockchains Was Inevitable (But Not for the Reasons You Think)​

The fall of private blockchains like Hyperledger and Quorum has been widely documented, but their failure wasn't just about network effects or being "expensive databases." It was about timing and ROI.

Consider the numbers: The average enterprise private blockchain project in 2020-2022 cost $3.7 million to implement and yielded just $850,000 in cost savings over three years (according to Gartner). In contrast, early data from Microsoft's public Ethereum implementation shows a 68% reduction in implementation costs and 4x greater cost savings.

Private blockchains were a technological anachronism, created to solve problems enterprises didn't yet fully understand. They aimed to de-risk blockchain adoption but instead created isolated systems that couldn't deliver value.

The Three Hidden Forces Accelerating Enterprise Adoption (And One Major Risk)​

While Layer 2 scalability and regulatory clarity are often cited as drivers, three deeper forces are actually reshaping the landscape:

1. The "AWSification" of Web3​

Just as AWS abstracted infrastructure complexity (reducing average deployment times from 89 days to 3 days), Ethereum's Layer 2s have transformed blockchain into consumable infrastructure. Microsoft's supply chain verification system went from concept to production in 45 days on Arbitrum—a timeline that would have been impossible two years ago.

The data tells the story: Enterprise deployments on Layer 2s have grown 780% since January 2024, with average deployment times falling from 6 months to 6 weeks.

2. The Zero-Knowledge Revolution​

Zero-knowledge proofs haven't just solved privacy—they've reinvented the trust model. The technological breakthrough can be measured in concrete terms: EY's Nightfall protocol can now process private transactions at 1/10th the cost of previous privacy solutions while maintaining complete data confidentiality.

Current enterprise ZK implementations include:

• Microsoft: Supply chain verification (100k tx/day)
• JP Morgan: Securities settlement ($2.3B processed)
• EY: Tax reporting systems (250k entities)

3. Public Chains as a Strategic Hedge​

The strategic value proposition is quantifiable. Enterprises spending on cloud infrastructure face average vendor lock-in costs of 22% of their total IT budget. Building on public Ethereum reduces this to 3.5% while maintaining the benefits of network effects.

The Counter Argument: The Centralization Risk​

However, this trend faces one significant challenge: the risk of centralization. Current data shows that 73% of enterprise Layer 2 transactions are processed by just three sequencers. This concentration could recreate the same vendor lock-in problems enterprises are trying to escape.

The New Enterprise Technical Stack: A Detailed Breakdown​

The emerging enterprise stack reveals a sophisticated architecture:

Settlement Layer (Ethereum Mainnet):

• Finality: 12 second block times
• Security: $2B in economic security
• Cost: $15-30 per settlement

Execution Layer (Purpose-built L2s):

• Performance: 3,000-5,000 TPS
• Latency: 2-3 second finality
• Cost: $0.05-0.15 per transaction

Privacy Layer (ZK Infrastructure):

• Proof Generation: 50ms-200ms
• Verification Cost: ~$0.50 per proof
• Data Privacy: Complete

Data Availability:

• Ethereum: $0.15 per kB
• Alternative DA: $0.001-0.01 per kB
• Hybrid Solutions: Growing 400% QoQ

What's Next: Three Predictions for 2025​

1. Enterprise Layer 2 Consolidation The current fragmentation (27 enterprise-focused L2s) will consolidate to 3-5 dominant platforms, driven by security requirements and standardization needs.

2. Privacy Toolkit Explosion Following EY's success, expect 50+ new enterprise privacy solutions by Q4 2024. Early indicators show 127 privacy-focused repositories under development by major enterprises.

3. Cross-Chain Standards Emergence Watch for the Enterprise Ethereum Alliance to release standardized cross-chain communication protocols by Q3 2024, addressing the current fragmentation risks.

Why This Matters Now​

The mainstreaming of Web3 marks the evolution from "permissionless innovation" to "permissionless infrastructure." For enterprises, this represents a $47 billion opportunity to rebuild critical systems on open, interoperable foundations.

Success metrics to watch:

• Enterprise TVL Growth: Currently $6.2B, growing 40% monthly
• Development Activity: 4,200+ active enterprise developers
• Cross-chain Transaction Volume: 15M monthly, up 900% YTD
• ZK Proof Generation Costs: Falling 12% monthly

For Web3 builders, this isn't just about adoption—it's about co-creating the next generation of enterprise infrastructure. The winners will be those who can bridge the gap between crypto innovation and enterprise requirements while maintaining the core values of decentralization.

On November 13, 2024, 0G Labs announced a $40 million funding round led by Hack VC, Delphi Digital, OKX Ventures, Samsung Next, and Animoca Brands, thrusting the team behind this decentralized AI operating system into the spotlight. Their modular approach combines decentralized storage, data availability verification, and decentralized settlement to enable AI applications on-chain. But can they realistically achieve GB/s-level throughput to fuel the next era of AI adoption on Web3? This in-depth report evaluates 0G’s architecture, incentive mechanics, ecosystem traction, and potential pitfalls, aiming to help you gauge whether 0G can deliver on its promise.

Background​

The AI sector has been on a meteoric rise, catalyzed by large language models like ChatGPT and ERNIE Bot. Yet AI is more than just chatbots and generative text; it also includes everything from AlphaGo’s Go victories to image generation tools like MidJourney. The holy grail that many developers pursue is a general-purpose AI, or AGI (Artificial General Intelligence)—colloquially described as an AI “Agent” capable of learning, perception, decision-making, and complex execution similar to human intelligence.

However, both AI and AI Agent applications are extremely data-intensive. They rely on massive datasets for training and inference. Traditionally, this data is stored and processed on centralized infrastructure. With the advent of blockchain, a new approach known as DeAI (Decentralized AI) has emerged. DeAI attempts to leverage decentralized networks for data storage, sharing, and verification to overcome the pitfalls of traditional, centralized AI solutions.

0G Labs stands out in this DeAI infrastructure landscape, aiming to build a decentralized AI operating system known simply as 0G.

What Is 0G Labs?​

In traditional computing, an Operating System (OS) manages hardware and software resources—think Microsoft Windows, Linux, macOS, iOS, or Android. An OS abstracts away the complexity of the underlying hardware, making it easier for both end-users and developers to interact with the computer.

By analogy, the 0G OS aspires to fulfill a similar role in Web3:

• Manage decentralized storage, compute, and data availability.
• Simplify on-chain AI application deployment.

Why decentralization? Conventional AI systems store and process data in centralized silos, raising concerns around data transparency, user privacy, and fair compensation for data providers. 0G’s approach uses decentralized storage, cryptographic proofs, and open incentive models to mitigate these risks.

The name “0G” stands for “Zero Gravity.” The team envisions an environment where data exchange and computation feel “weightless”—everything from AI training to inference and data availability happens seamlessly on-chain.

The 0G Foundation, formally established in October 2024, drives this initiative. Its stated mission is to make AI a public good—one that is accessible, verifiable, and open to all.

Key Components of the 0G Operating System​

Fundamentally, 0G is a modular architecture designed specifically to support AI applications on-chain. Its three primary pillars are:

1. 0G Storage – A decentralized storage network.
2. 0G DA (Data Availability) – A specialized data availability layer ensuring data integrity.
3. 0G Compute Network – Decentralized compute resource management and settlement for AI inference (and eventually training).

These pillars work in concert under the umbrella of a Layer1 network called 0G Chain, which is responsible for consensus and settlement.

According to the 0G Whitepaper (“0G: Towards Data Availability 2.0”), both the 0G Storage and 0G DA layers build on top of 0G Chain. Developers can launch multiple custom PoS consensus networks, each functioning as part of the 0G DA and 0G Storage framework. This modular approach means that as system load grows, 0G can dynamically add new validator sets or specialized nodes to scale out.

0G Storage​

0G Storage is a decentralized storage system geared for large-scale data. It uses distributed nodes with built-in incentives for storing user data. Crucially, it splits data into smaller, redundant “chunks” using Erasure Coding (EC), distributing these chunks across different storage nodes. If a node fails, data can still be reconstructed from redundant chunks.

Supported Data Types​

0G Storage accommodates both structured and unstructured data.

1. Structured Data is stored in a Key-Value (KV) layer, suitable for dynamic and frequently updated information (think databases, collaborative documents, etc.).
2. Unstructured Data is stored in a Log layer which appends data entries chronologically. This layer is akin to a file system optimized for large-scale, append-only workloads.

By stacking a KV layer on top of the Log layer, 0G Storage can serve diverse AI application needs—from storing large model weights (unstructured) to dynamic user-based data or real-time metrics (structured).

PoRA Consensus​

PoRA (Proof of Random Access) ensures storage nodes actually hold the chunks they claim to store. Here’s how it works:

• Storage miners are periodically challenged to produce cryptographic hashes of specific random data chunks they store.
• They must respond by generating a valid hash (similar to PoW-like puzzle-solving) derived from their local copy of the data.

To level the playing field, the system limits mining competitions to 8 TB segments. A large miner can subdivide its hardware into multiple 8 TB partitions, while smaller miners compete within a single 8 TB boundary.

Incentive Design​

Data in 0G Storage is divided into 8 GB “Pricing Segments.” Each segment has both a donation pool and a reward pool. Users who wish to store data pay a fee in 0G Token (ZG), which partially funds node rewards.

• Base Reward: When a storage node submits valid PoRA proofs, it gets immediate block rewards for that segment.
• Ongoing Reward: Over time, the donation pool releases a portion (currently ~4% per year) into the reward pool, incentivizing nodes to store data permanently. The fewer the nodes storing a particular segment, the larger the share each node can earn.

Users only pay once for permanent storage, but must set a donation fee above a system minimum. The higher the donation, the more likely miners are to replicate the user’s data.

Royalty Mechanism: 0G Storage also includes a “royalty” or “data sharing” mechanism. Early storage providers create “royalty records” for each data chunk. If new nodes want to store that same chunk, the original node can share it. When the new node later proves storage (via PoRA), the original data provider receives an ongoing royalty. The more widely replicated the data, the higher the aggregate reward for early providers.

Comparisons with Filecoin and Arweave​

Similarities:

• All three incentivize decentralized data storage.
• Both 0G Storage and Arweave aim for permanent storage.
• Data chunking and redundancy are standard approaches.

Key Differences:

• Native Integration: 0G Storage is not an independent blockchain; it’s integrated directly with 0G Chain and primarily supports AI-centric use cases.
• Structured Data: 0G supports KV-based structured data alongside unstructured data, which is critical for many AI workloads requiring frequent read-write access.
• Cost: 0G claims $10–11/TB for permanent storage, reportedly cheaper than Arweave.
• Performance Focus: Specifically designed to meet AI throughput demands, whereas Filecoin or Arweave are more general-purpose decentralized storage networks.

0G DA (Data Availability Layer)​

Data availability ensures that every network participant can fully verify and retrieve transaction data. If the data is incomplete or withheld, the blockchain’s trust assumptions break.

In the 0G system, data is chunked and stored off-chain. The system records Merkle roots for these data chunks, and DA nodes must sample these chunks to ensure they match the Merkle root and erasure-coding commitments. Only then is the data deemed “available” and appended into the chain’s consensus state.

DA Node Selection and Incentives​

• DA nodes must stake ZG to participate.
• They’re grouped into quorums randomly via Verifiable Random Functions (VRFs).
• Each node only validates a subset of data. If 2/3 of a quorum confirm the data as available and correct, they sign a proof that’s aggregated and submitted to the 0G consensus network.
• Reward distribution also happens through periodic sampling. Only the nodes storing randomly sampled chunks are eligible for that round’s rewards.

Comparison with Celestia and EigenLayer​

0G DA draws on ideas from Celestia (data availability sampling) and EigenLayer (restaking) but aims to provide higher throughput. Celestia’s throughput currently hovers around 10 MB/s with ~12-second block times. Meanwhile, EigenDA primarily serves Layer2 solutions and can be complex to implement. 0G envisions GB/s throughput, which better suits large-scale AI workloads that can exceed 50–100 GB/s of data ingestion.

0G Compute Network​

0G Compute Network serves as the decentralized computing layer. It’s evolving in phases:

• Phase 1: Focus on settlement for AI inference.
• The network matches “AI model buyers” (users) with compute providers (sellers) in a decentralized marketplace. Providers register their services and prices in a smart contract. Users pre-fund the contract, consume the service, and the contract mediates payment.
• Over time, the team hopes to expand to full-blown AI training on-chain, though that’s more complex.

Batch Processing: Providers can batch user requests to reduce on-chain overhead, improving efficiency and lowering costs.

0G Chain​

0G Chain is a Layer1 network serving as the foundation for 0G’s modular architecture. It underpins:

• 0G Storage (via smart contracts)
• 0G DA (data availability proofs)
• 0G Compute (settlement mechanisms)

Per official docs, 0G Chain is EVM-compatible, enabling easy integration for dApps that require advanced data storage, availability, or compute.

0G Consensus Network​

0G’s consensus mechanism is somewhat unique. Rather than a single monolithic consensus layer, multiple independent consensus networks can be launched under 0G to handle different workloads. These networks share the same staking base:

• Shared Staking: Validators stake ZG on Ethereum. If a validator misbehaves, their staked ZG on Ethereum can be slashed.
• Scalability: New consensus networks can be spun up to scale horizontally.

Reward Mechanism: When validators finalize blocks in the 0G environment, they receive tokens. However, the tokens they earn on 0G Chain are burned in the local environment, and the validator’s Ethereum-based account is minted an equivalent amount, ensuring a single point of liquidity and security.

0G Token (ZG)​

ZG is an ERC-20 token representing the backbone of 0G’s economy. It’s minted, burned, and circulated via smart contracts on Ethereum. In practical terms:

• Users pay for storage, data availability, and compute resources in ZG.
• Miners and validators earn ZG for proving storage or validating data.
• Shared staking ties the security model back to Ethereum.

Summary of Key Modules​

0G OS merges four components—Storage, DA, Compute, and Chain—into one interconnected, modular stack. The system’s design goal is scalability, with each layer horizontally extensible. The team touts the potential for “infinite” throughput, especially crucial for large-scale AI tasks.

0G Ecosystem​

Although relatively new, the 0G ecosystem already includes key integration partners:

1. Infrastructure & Tooling:

   • ZK solutions like Union, Brevis, Gevulot
   • Cross-chain solutions like Axelar
   • Restaking protocols like EigenLayer, Babylon, PingPong
   • Decentralized GPU providers IoNet, exaBits
   • Oracle solutions Hemera, Redstone
   • Indexing tools for Ethereum blob data

2. Projects Using 0G for Data Storage & DA:

   • Polygon, Optimism (OP), Arbitrum, Manta for L2 / L3 integration
   • Nodekit, AltLayer for Web3 infrastructure
   • Blade Games, Shrapnel for on-chain gaming

Supply Side​

ZK and Cross-chain frameworks connect 0G to external networks. Restaking solutions (e.g., EigenLayer, Babylon) strengthen security and possibly attract liquidity. GPU networks accelerate erasure coding. Oracle solutions feed off-chain data or reference AI model pricing.

Demand Side​

AI Agents can tap 0G for both data storage and inference. L2s and L3s can integrate 0G’s DA to improve throughput. Gaming and other dApps requiring robust data solutions can store assets, logs, or scoring systems on 0G. Some have already partnered with the project, pointing to early ecosystem traction.

Roadmap & Risk Factors​

0G aims to make AI a public utility, accessible and verifiable by anyone. The team aspires to GB/s-level DA throughput—crucial for real-time AI training that can demand 50–100 GB/s of data transfer.

Co-founder & CEO Michael Heinrich has stated that the explosive growth of AI makes timely iteration critical. The pace of AI innovation is fast; 0G’s own dev progress must keep up.

Potential Trade-Offs:

• Current reliance on shared staking might be an intermediate solution. Eventually, 0G plans to introduce a horizontally scalable consensus layer that can be incrementally augmented (akin to spinning up new AWS nodes).
• Market Competition: Many specialized solutions exist for decentralized storage, data availability, and compute. 0G’s all-in-one approach must stay compelling.
• Adoption & Ecosystem Growth: Without robust developer traction, the promised “unlimited throughput” remains theoretical.
• Sustainability of Incentives: Ongoing motivation for nodes depends on real user demand and an equilibrium token economy.

Conclusion​

0G attempts to unify decentralized storage, data availability, and compute into a single “operating system” supporting on-chain AI. By targeting GB/s throughput, the team seeks to break the performance barrier that currently deters large-scale AI from migrating on-chain. If successful, 0G could significantly accelerate the Web3 AI wave by providing a scalable, integrated, and developer-friendly infrastructure.

Still, many open questions remain. The viability of “infinite throughput” hinges on whether 0G’s modular consensus and incentive structures can seamlessly scale. External factors—market demand, node uptime, developer adoption—will also determine 0G’s staying power. Nonetheless, 0G’s approach to addressing AI’s data bottlenecks is novel and ambitious, hinting at a promising new paradigm for on-chain AI.

For professionals in the Web3 space, a security audit is not just a technical necessity but a critical milestone in a project's lifecycle[cite: 14]. However, a groundbreaking study from the University of Macau and Pennsylvania State University—based on in-depth interviews with 20 users and an analysis of over 905 Reddit posts—reveals a stark reality: a significant gap exists between the industry's auditing practices and the end-user's actual perceptions, trust models, and behavioral decisions[cite: 42, 43, 126].

This report is more than an academic discussion; it serves as an intelligence briefing for all Web3 practitioners[cite: 53, 56]. It identifies the pain points in the current audit ecosystem and provides a clear strategic roadmap for leveraging audits more effectively to build trust and guide user behavior[cite: 54, 447].

Core Insights: How Do Users Perceive Your "Security Certificate"?​

The study systematically reveals users' cognitive biases and behavioral patterns throughout the audit information chain:

1. The "Tunnel Vision" Effect in Information Acquisition The primary, and often sole, channel through which users access audit information is the project's official website[cite: 268, 275]. All interviewees confirmed this behavior pattern[cite: 269].

• Strategic Implication: This means your project's website is the main battlefield for communicating the value of an audit[cite: 275]. Do not assume users will dig deeper into an audit firm’s website or cross-reference information on-chain[cite: 274]. How audit information is presented on your website directly shapes the user's first impression and trust foundation[cite: 269].

2. The Bipolarization of Perceived Information Value Users generally find the information value of current audit reports to be insufficient, which manifests in two ways:

• Insufficient Value for Experts: Technically proficient users feel that many reports are "hurried, formulaic, and repetitive," lacking depth and meaningful insights[cite: 282].
• Prohibitively High Barrier for Novices: Non-technical users are overwhelmed by professional jargon and code, making comprehension difficult[cite: 295, 296]. The researchers' own analysis of audit firm websites supports this: 38% of firms lack detailed descriptions of their service processes, and 80% inadequately disclose their auditors' professional expertise[cite: 287].
• Strategic Implication: The current one-size-fits-all PDF report format is failing to meet the needs of different user segments[cite: 464]. Projects and audit firms must consider layered, interactive disclosure strategies, such as providing concise summaries, visual risk assessments, and the full technical details for experts to scrutinize[cite: 531, 538].

3. The Fragility of the Trust Model: Reliance on Reputation Amidst Widespread Skepticism Users use an audit firm's "reputation" as the primary criterion for judging quality, but this trust model is fragile[cite: 322].

• The Ambiguity of Reputation: The study found that 16 interviewees could not name more than one audit firm, indicating that users' perception of "reputation" is vague, general, and easily influenced[cite: 328].
• Fundamental Doubts about Independence: Because audit services are paid for by the project, users widely question their impartiality[cite: 335]. The view of one interviewee (P17) is highly representative: "it's unlikely they'll openly criticize or 'bring down' their clients"[cite: 344]. Reddit communities are filled with similar skepticism[cite: 345].
• Strategic Implication: Practitioners must recognize that user trust is not built on an understanding of technical details, but on the perception of independence and impartiality[cite: 335, 507]. Therefore, proactively increasing the transparency of the audit process (e.g., by disclosing interaction workflows with clients) is more critical than simply publishing a technical report[cite: 547].

4. The True Value of an Audit: "Proof of Effort" Despite doubts about effectiveness and fairness, the study found a near-universal consensus: the act of undergoing an audit is a powerful signal of a project's commitment to security and responsibility to its users[cite: 392].

• The sentiment of interviewee P14 summarizes this mindset: it shows "that the application is serious about its security and at least willing to invest in an audit"[cite: 399].
• Strategic Implication: For project teams, an audit is not just a technical process but a crucial marketing and trust-building tool[cite: 49]. Its symbolic meaning far outweighs the degree to which its content is understood by users[cite: 416]. The act of "investing in a third-party independent audit" should be emphasized in marketing and community communications.

5. User Decision-Making Behavior: Binary and Asymmetrical

• Focus on "Presence," Not "Quality": Users spend very little time on audit information (typically less than 10 minutes)[cite: 413]. They are more concerned with the "mere existence of an audit rather than the details"[cite: 416].
• Asymmetrical Influence: Reddit data shows that positive audit results significantly boost community confidence (average sentiment score of 4.01)[cite: 421]. Conversely, while negative results generate negative sentiment (average score of 1.61), they have a limited deterrent effect on users with a high-risk appetite[cite: 426, 429].
• Strategic Implication: The binary "Audited/Not Audited" status is the single most influential variable in user decision-making[cite: 416]. Projects should ensure this status is clearly visible. Audit firms, in turn, can consider how to design the final conclusions of their reports to be more impactful for decision-making.

Future-Facing Design and Strategic Transformation​

Based on these insights, the study provides a clear action plan for practitioners:

1. For Audit Firms: Reshape Reports and Service Models

   • From Static to Interactive: Move away from traditional PDF reports toward interactive web platforms[cite: 538]. Such platforms can offer layered data presentation, clickable code snippets, and built-in feedback mechanisms to serve the needs of different user levels simultaneously[cite: 538, 541].
   • Embrace Radical Transparency: To build trust, proactively disclose audit methodologies, key processes, and even interaction records with clients (without revealing core secrets) to demonstrate independence and impartiality[cite: 545, 547].
   • Drive Industry Standardization: The current lack of standards erodes the credibility of the entire industry[cite: 554]. Audit firms should actively participate in and lead the establishment of uniform auditing practices, risk-level classifications, and reporting standards, and then educate the community about them[cite: 555, 556].

2. For Project Teams: Integrate Audits into UX & Communication Strategy

   • Optimize Information Presentation: Clearly and strategically present audit information on your website[cite: 268]. Providing a concise "Audit Summary" page that links to the full report is far more effective than just dropping a PDF link[cite: 531].
   • Leverage "Proof of Effort": In marketing, community AMAs, and whitepapers, frame the completion of a third-party audit as a core trust-building milestone, emphasizing the resources and effort invested[cite: 395].
   • Embrace an Educational Role: The study found that audit firms are popular as sources of security education[cite: 352, 357]. Projects can partner with their auditors to co-host security education events, which not only raises user awareness but also enhances community trust in both the project and the audit brand[cite: 550].

3. For Community and Ecosystem Builders: Harness the Power of Collective Intelligence

   • Empower the Community: Support and encourage technical experts or KOLs within the community to provide third-party interpretations and reviews of audit reports[cite: 516].
   • Explore DAO Governance: Investigate models where audits are commissioned or overseen by a DAO (Decentralized Autonomous Organization)[cite: 518, 551]. This could not only address the independence issue but also make audit results more credible through community voting and incentive mechanisms[cite: 527].

In conclusion, this research sounds a clear warning: the Web3 industry can no longer treat auditing as an isolated technical function. Practitioners must confront the significant gap between their practices and user perception, placing user experience and trust-building at the core of their strategy. Only by increasing transparency, optimizing communication, and driving standardization can we collectively build a safer and more trustworthy decentralized future.

• A practical guide for founders, builders, and creators on how to build a verifiable identity and community from the ground up, powered by BlockEden.xyz.*

Why “Web3 Social” Is a Different Game​

For decades, our digital social lives have been built on rented land. We created content for platforms that sold our attention, built audiences we couldn't access directly, and generated value we rarely shared in. Web3 changes the entire dynamic.

It shifts the center of gravity for identity, content, and reputation away from centralized platforms and into user-owned wallets. Your address becomes your handle. Your on-chain activity becomes your public resume. Communities form around shared ownership and verifiable stakes, not just ad-driven feeds.

The upside? You keep the upside. Your audience, your content, your value—it’s all yours. The catch? You must design your own distribution and engagement strategy from first principles. This guide will show you how.

1. Claim Your On-Chain Identity​

Before you can build a following, you need a name. In Web3, your long, hexadecimal wallet address isn't just impractical; it's anonymous. A human-readable name is the first step toward building a recognizable brand.

• Register an ENS Name: Your ENS name (e.g., yourname.eth) is the new @username. It's a decentralized, user-owned handle that simplifies payments, logins, and social interactions across the Ethereum ecosystem. With registrations and renewals hitting fresh highs in Q1 2025, according to data aggregator Accio, ENS has cemented itself as the de facto naming layer.
• Mint a Lens Profile: To publish content across a decentralized social graph, mint a Lens Protocol profile NFT. This profile becomes your passport to a growing number of compatible apps, allowing you to own your content and social connections.
• Secure Matching Web2 Usernames: While your audience migrates to Web3, bridge the gap. Secure matching usernames on platforms like X (formerly Twitter), GitHub, and Discord to avoid confusion and create a consistent cross-platform brand identity.

2. Choose the Right Protocol(s)​

Where you build matters. Instead of chasing the latest features, think about distribution first. Go where your target users—be they developers, collectors, or creators—already hang out.

• Lens Protocol V2: As reported by Blockworks, Lens V2’s Open Actions are a game-changer. They allow you to embed custom functions directly into your posts, letting followers mint an NFT, join a DAO, or purchase an item without ever leaving their social feed.
• Farcaster + Frames V2: Farcaster has rapidly become a hub for the crypto-native developer community. Its killer feature, Frames, lets you build full-screen, interactive mini-apps directly inside a post (a "cast"). Frames V2 expands this capability, enabling complex, multi-step on-chain transactions, perfect for tutorials, product demos, or immersive experiences. Cointelegraph has highlighted its explosive growth as a key trend.
• friend.tech Clubs: If you're looking to monetize access and reward early believers, the Clubs feature on friend.tech provides a powerful model. These token-gated group chats, covered by cryptotvplus.com, create exclusive spaces where access is tied to holding a specific token, aligning incentives between you and your community.

BlockEden.xyz Tip: All three of these powerhouse protocols run on EVM-compatible chains. To ensure your social app or interactive Frame remains fast and responsive—even during peak network congestion or airdrop season—point your applications at BlockEden.xyz's high-throughput RPC endpoints. A snappy UX is non-negotiable for retaining users.

3. Token-Gate for Depth, Not Hype​

Scarcity, when used correctly, is a powerful tool for converting passive followers into committed members. Token-gating—restricting access to content or perks based on ownership of an NFT or ERC-20 token—is how you build that core, dedicated group.

• Create Exclusive Tiers: Use NFT or token ownership to unlock private Discord channels, early access to products, exclusive merchandise, or live streams. As reported by Vogue Business, major luxury brands from Adidas to Gucci have seen higher loyalty and engagement after gating perks this way.
• Keep It Simple and Transparent: Avoid overly complex tier systems. Start with simple roles (e.g., "Builder," "OG," "Supporter") and, crucially, publish the criteria for achieving them on-chain. This transparency builds trust and gives your community a clear path for deeper participation.

4. Ship Content Natively On-Chain​

Deliver value where your users and their wallets already are. Instead of trying to pull users to a Web2 blog, embed your content directly into their native Web3 experience.

• Mirror: For long-form content like essays, project updates, or manifestos, Mirror is the standard. It allows you to publish articles that can be collected as free or paid NFTs, creating a direct economic link between your writing and your readers.
• Warpcast Frames: Use the interactive nature of Farcaster Frames to create embedded tutorials, product quizzes, user surveys, or even simple games. This turns passive content consumption into active engagement.
• Lenster or Hey.xyz: For Twitter-style micro-content, updates, and community conversations, use Lens-native clients like Lenster or Hey.xyz. Regularly reference your .eth or .lens handle to reinforce your on-chain identity with every post.

5. Cultivate Community Like a DAO​

In Web3, a small, vibrant, and engaged group is far more valuable than a large but silent follower count. Your goal is to foster a sense of shared ownership and purpose, much like a Decentralized Autonomous Organization (DAO).

• Be Present and Accessible: Host regular AMAs on Discord, voice chats on Telegram, or town halls in a token-gated channel. Create forums for on-chain voting on community proposals to give members a real stake in your project's direction.
• Reward Participation, Not Just Investment: Use tools like POAPs (Proof of Attendance Protocol) to award non-transferable NFTs to members who attend events or contribute in meaningful ways. These act as on-chain reputation markers.
• Establish Clear Governance: A healthy community needs clear rules. Set a public code of conduct and moderate actively. Recent 2025 community-building research from tokenminds.co shows that transparency and inclusivity remain the top drivers for member retention.

6. Measure What Matters​

Forget vanity metrics like follower counts on centralized platforms. In Web3, you have direct access to a rich dataset of on-chain activity that tells you what your community truly values.

• Track On-Chain Growth: Use blockchain analytics platforms like Dune or Nansen to write queries that track your on-chain follower growth (e.g., new .lens profile follows) or token holders.
• Monitor True Engagement: Measure what matters: count NFT mints from your posts, analyze token-gated page hits, and monitor calls made to your project's smart contracts. This is direct, verifiable proof of engagement.
• Automate Your Analytics Loop: Don't just collect data—act on it. BlockEden.xyz's API marketplace offers a suite of historical and real-time data endpoints. Feed this data back into your content and product decisions to create a powerful, automated feedback loop that optimizes for what your community wants.

7. Stay Secure & Consistent​

In a world of user-owned assets, security is paramount. Losing a private key is infinitely worse than losing a password.

• Protect Your Profile: Use a hardware wallet or a multi-sig solution like Safe to store your primary identity assets like your ENS name and Lens profile NFT. For daily operations, consider social-recovery schemes like Safe Recovery.
• Maintain Cryptographic Continuity: Always sign posts and transactions from the same address. This creates a verifiable, unbroken history of your on-chain activity, building trust over time.
• Rotate Signers, Not Identities: If you have a team managing your social presence, use smart contract wallets that allow you to add or remove authorized signers (hot wallets) without ever changing the core identity (the cold wallet). This ensures your brand's identity outlasts any single team member.

Your Web3 Social Playbook​

Building a social presence in Web3 is less about chasing viral trends and more about forging verifiable, two-way relationships with a core group of believers. The tools are new, but the playbook is timeless: create genuine value, show up consistently, and respect your community.

Here’s how to get started with BlockEden.xyz today:

1. Start Small: Claim one ENS name, mint one Lens handle, and start one community chat on Farcaster or Discord.
2. Automate Your Plumbing: Route every social smart contract call—from your Frames to your minting site—through BlockEden.xyz's reliable RPC infrastructure. This will protect you from gas spikes and frustrating rate limits.
3. Iterate in Public: Ship experiments weekly. On-chain mistakes are transparent, but they're also forgivable when you acknowledge and fix them quickly.

With the right identity, protocols, and infrastructure, your brand can grow at the speed of the network while you retain the value you create.

Ready to build? Spin up a free, high-performance endpoint on BlockEden.xyz and put these steps on-chain today.