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WhatsApp crash: Are decentralized blockchain messengers a real alternative?

Centralized communication apps share one crucial feature: They crash often. Cointelegraph investigates to see if decentralization can offer a solution.

Since the introduction of ICQ — the progenitor of online chat applications — the expectation from instant messaging (IM) services has never changed. Users simply want them to work, which apparently turned into a tall order, given the frequent downtimes most popular chat apps experience nowadays. 

Launched the same year as Bitcoin (BTC), WhatsApp is one of the most widely used chat apps on the planet. Owned by Meta (the stable of which also boasts Instagram and Facebook), WhatsApp stands as the epitome of centralized services. That’s why when the service goes down, it has a much broader impact than just leaving over two billion monthly users scratching their heads and complaining on Twitter.

WhatsApp embodies the qualities of a centralized mindset perfectly: It has mainstream reach, an industry giant backs it and despite nearly one-third of the planet using it, people have absolutely no say over the final product.

Why do centralized chat apps go down?

When a product is controlled and managed by a central entity, it tends to follow certain processes during its lifecycle. Someone has to shoulder full responsibility for the various aspects of the centralized product. 

The massive scale of the product turns even tiny updates into a chaos of human errors, database issues and not having enough time to test the version before pushing out the update to meet stakeholder expectations. Coupled with the numerous cyber attacks on the infrastructure itself, the more the service is centralized and managed by a single entity, the more the “usual suspects of failure” fill the room.

Can decentralized services fix downtimes?

Communication-focused decentralized apps (DApps), on the other hand, provide anti-fragile systems, co-founder and CEO of Web3 service provider Heirloom Nick Dazè told Cointelegraph. He said that decentralized messengers get stronger with every user onboarded because they essentially function as “nodes” that keep the system functioning properly. 

“The key difference is that there is not one single point of failure,” Dazè stated, likening it to a balloon that is compressed on one part, which becomes geometrically smaller while still containing the air from the compressed section: “All of the air still exists. It is just pushed to a different section of the balloon.”

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Of course, decentralized apps come with their own set of challenges, and one of them is scaling. DApps can’t compete with centralized services without being able to take on a billion-level user base, but Dazè believes DApps can overcome scaling issues by answering two questions: “Where does all of this data ‘live?’” and “How do we reduce network spam?”

Addressing the first issue, Dazè sees public key-based addressing as a decent solution, “As it serves as a limiting function on the amount of data necessary to handle.” Regarding the second issue, Dazè said that disincentives for spam must be created, accompanied by Captcha servers.

Redundancy is the name of the game

Cointelegraph also reached out to Chris McCabe, the co-founder of the Oxen Project — known for its decentralized IM app Session. When asked how decentralized IM apps handle crashes and downtimes, McCabe pointed to redundancy: 

“Decentralized networks have a lot of redundancy built in. If one server goes down, another one is there to take its place.” 

He said the Oxen Service Node Network, a set of incentivized nodes serving as the infrastructure of Oxen and its offerings, has over 1,600 nodes operated by hundreds of people worldwide.

“It would take a catastrophic event to take the network down,” McCabe claimed, adding that the network is equipped to continue as usual despite experiencing major events from time to time.

“In the past, we saw one-fifth of nodes go offline suddenly, but Session continued sending messages as normal. The network self-heals, and it hasn’t had a total freeze of communication as we have seen with centralized networks.”

Session can currently handle about five million users — a tiny portion of WhatsApp’s user base. However, McCabe said the team will continue to release updates for a more extensive decentralized storage network and higher network bandwidth.

The Oxen co-founder admitted that whether a decentralized network could handle the traffic that WhatsApp or Messenger face daily has yet to be proven. However, he is hopeful that Session could be the first app to test that theory.

“Session is gaining popularity not only because it hasn’t gone down,” he summarized, adding, “But also because people are sick and tired of having their data systematically collected, analyzed and weaponized against them.” 

Unmanipulated, unreadable and untraceable

The decentralized ecosystem offers a wide range of projects and apps with different priorities. One such is TransferChain, a peer-to-peer messaging app that focuses on privacy. Tuna Özen, the co-founder of TransferChain, told Cointelegraph that while the scalability aspect in decentralization is a gray area, being scalable or non-scalable is the result of design decisions. 

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“The main misconception that drives products to be non-scalable is assuming that any blockchain design can meet all needs,” Özen said. He suggested that multiple variables including block volume, block generation rate, consensus, selection algorithm, token integration, network cost and benefit structure and network participation structure should be taken into account:

“Just as it is reasonable to expect a track-proven race car built purely for speed to deliver the same performance in off-road conditions, it is just as reasonable to expect a blockchain approach that is not specifically designed for products and services to be scalable.”

Tuna Özen and his team describe TransferChain as a cloud platform powered by a decentralized decision-making mechanism on a distributed ledger. The app differs from its centralized counterparts with where and how the communication data is saved as well as the transparent storage of the process — which is unmanipulated, unreadable and untraceable according to Özen.

Although decentralized services offer more resilient infrastructures, they still have a long way to go to catch up with their centralized counterparts in terms of user base and mainstream adoption. Another thing to remember is that as DApps get more popular, they will probably need to face more regulatory scrutiny and governments worldwide would definitely have trouble with this new form of communication — given they only recently started to get a grasp of the new form of money.

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Japan-based messaging app will offer trial run of native token starting in March

LINE Pay said it was considering adding other cryptocurrencies including Bitcoin and Ether to its payments options in the future

Users of Japanese messaging giant LINE will soon be able to use the app’s native token for payments at select online merchants in a limited trial.

In a Tuesday announcement, the LINE Corporation said that starting on March 16, users would have the option of paying with native LINK token (LN) — not to be confused with Chainlink (LINK) — at any of LINE Pay’s online merchants. The trial period, which will run until Dec. 26, is aimed at testing real-life use cases for the tokens in addition to increasing the convenience and number of payment options for users.

Source: Mikhail Nilov, Pexels

LINE Pay said it was considering adding other cryptocurrencies including Bitcoin (BTC) and Ether (ETH) to its payments options in the future, in addition to strengthening its partnerships with blockchain firms. Data from Statista shows there were 86 million monthly active LINE users as of the third quarter of 2020 — more than 68% of the country’s population of 126 million.

Launched in August 2018, the LN token is currently trading at $142.78, having risen by roughly 22% in the last 7 days. The token has been available for trading on crypto exchange Bitmax following an August 2020 agreement. As of the end of 2021, there were 30 crypto exchange businesses operating in Japan that had been approved by the country’s Financial Services Agency.

Related: Japan's financial regulators may propose legislation in 2022 restricting stablecoin issuance

A consortium of Japan-based financial institutions and major corporations announced in November that they planned to trial and launch a yen-based digital currency in fiscal 2022. The country’s central bank, the Bank of Japan, is still in the research phase of developing a digital yen, expecting to complete its first trials by March.

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Blockchain-based decentralized messengers: A privacy pipedream?

While blockchain messengers stand to mitigate many of the privacy issues posed by their centralized counterparts, they still have their fair share of unignorable issues.

As people all over the globe have become increasingly aware of their privacy rights and how they are constantly being violated by various prominent social media platforms, the need for tangible, decentralized alternatives has continued to grow rapidly.

For perspective, in 2019, Facebook was ordered to pay a mind-boggling $5-billion fine by the United States Federal Trade Commission for improperly acquiring private data of up to 87 million of its users. Just a year later, the social media giant had to shell out another $550 million to settle a privacy lawsuit that suggested that the firm had illegally accrued customer data (including their biometric and personal details) without their explicit consent.

Such violations have helped spur the need for transparency-driven social media services, particularly decentralized messengers, that provide their users with a high degree of data security. In this regard, the new quantum-resistant, privacy-centric messaging app XX Messenger — developed by cryptographer David Chaum — recently made its way into the market. The app boasts a globally decentralized network of 350 nodes, with each operator earning the platform’s native XX Coin as an incentive for their efforts.

A quantum-resistant messenger would be able to resist most currently known methods of decryption, theoretically guarding against the possibility of a quantum computer used to crack into a user’s communications.

The incentives for blockchain-based messengers

Guy Goldenberg, CEO of MultiNFT — a metaverse-based social media network — told Cointelegraph that the need for decentralized messaging services is driven by two key accelerating factors: users looking for censorship-resistant applications, and a lack of trust in centralized providers when it comes to privacy and data protection. He said:

“Users are showing a rising concern when it comes to their freedom of speech and the ownership of their data rights lately, and with the help of decentralized chat apps, the solution seems to be right around the corner — platforms that are owned by the users and not by a small group of executives, where no single party can control opinions or censor participants.”

Scott Cunningham, an independent blockchain analyst and social media influencer, told Cointelegraph that the core proposition put forth by decentralized messaging platforms is that they provide users with end-to-end encrypted solutions that ensure consumer anonymity as well as a high degree of privacy. To strengthen his case, he shared a recent unpleasant experience with Facebook’s Messenger:

“I sent a note to myself [meant to be read later by me] only to find that Facebook is monitoring messages to myself and removed it due to a community violation. Once someone experiences firsthand that everything they say is being tracked and evaluated in real-time, they will feel more compelled to move.”

The drawbacks are quite real 

While a decentralized messenger could theoretically preserve the privacy of the masses, blockchain technology in itself could be a barrier to adoption.

Ingo Rübe, founder of blockchain-based identity network Kilt Protocol, noted that decentralized messengers need real-time relay and storage capabilities, as it is quite unrealistic for receivers to be online whenever someone sends them a text. “A possible solution would be to use random single blockchain nodes as relays, but it might be unreliable,” he admitted. 

Goldenberg said that the use of blockchain tech poses further problems when it comes to network upgrades. “Updates on blockchain systems are very rarely backwards compatible and can sometimes present issues that a product may not be able to survive,” Goldenberg added.

Yung Beef, content lead and community manager at Subsocial — a Polkadot-based platform for launching decentralized social networks — told Cointelegraph that one of the biggest barriers is transaction fees, adding:

“We’re already struggling enough with creating a social networking platform that has transaction fees, and with how much people message each other, I’m not sure that it would ever really be feasible.”

While he admitted that Subsocial is actively looking for ways through which to implement a private messaging module, the challenges are quite drastic, making the vision a bit of a pipedream. “We’re working on a way to lock SUB [the platform’s native crypto token] to get a certain number of free transactions a day, but that still doesn’t solve the problem of some people sending thousands of messages a day,” he added.

A similar sentiment was echoed by Rübe, who told Cointelegraph that a decentralized messaging service would be faced with multiple challenges from the get-go, starting with the fact that it would be costly to put messages on a blockchain. Even if they did make their way onto a network, they would not be very secure because it would be quite easy for anyone with access to the system to read them. 

Alexander Klus, founder of Creaton — a decentralized content sharing platform — told Cointelegraph that a fully functional, viable blockchain messenger is a very hard problem to solve, pointing out that existing platforms such as Etherscan’s messaging service are quite centralized. Even Status, the official Ethereum messenger, contains some degree of centralization in order to scale better, he said, adding:

“Choosing a platform like Signal as a messaging platform would be best, as it has very good encryption. Also, permanence in terms of messaging isn’t a big deal or something most users don’t even want anyway.”

Another major problem is adoption since most decentralized products that currently exist within this realm simply can’t compete with the giants they are up against such as Telegram, WhatsApp and WeChat. Goldenberg stated:

“Users have a habitual way of doing things, and new platforms need a viral accelerator for adoption because they require massive migration, which is almost not possible. You see, for a chat application to be useful, you need all (or most of) your contacts to use it, and that takes time, marketing and willingness.”

Is there any middle ground to be found?

While popular privacy-oriented apps, including Signal and Telegram, claim to approach user privacy with a great deal of care, making use of end-to-end encryption or client-server encryption, the former is only as secure as its coding. In this regard, Chaum pointed out that messages from these platforms can still theoretically be compromised and decoded by a powerful computer if they have not been deleted permanently.

Therefore, moving forward, it will be interesting to see whether developers are able to come up with blockchain-powered messaging services that offer the same degree of functional and operational flexibility as their centralized counterparts while being able to tackle the issue of high transaction fees in a long-term and practical manner.

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No Developed Nation Bans Cryptocurrencies, Telegram Founder Pavel Durov Warns Russia

No Developed Nation Bans Cryptocurrencies, Telegram Founder Pavel Durov Warns RussiaPavel Durov, founder of the messaging app Telegram, has criticized Bank of Russia’s proposal to impose a blanket ban on a range of crypto-related activities. Such move would stifle high-tech development and chase away blockchain specialists, Durov says. Durov Speaks Out Against Bank of Russia Push for Crypto Ban The cryptocurrency ban proposed by the […]

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Discord community splits as CEO unveils pre-released Ethereum integration

The new feature will allow Discord users to actively participate in upcoming crypto initiatives such as NFTs, Web 3.0 and token adoption.

Instant messaging platform Discord may soon launch support for MetaMask and WalletConnect integrations as evidenced by a pre-release screenshot shared by the platform’s CEO, Jason Citron. However, a portion of the Discord community raised concerns about the update while threatening to cancel its Nitro subscriptions.

Citron’s announcement of the upcoming Ethereum blockchain integration came as a reply to a tweet from Packy McCormick, founder of Not Boring, sharing an article that read:

“Imagine a human website. Imagine a place where dank memes flow like honey. Imagine a place where potatoes thrive. Imagine a place where humans and bots live in harmony. Imagine, in other words, a place like Discord.”

While Citron’s screenshot of the pre-released Discord application aims to expedite crypto adoption, the gaming community resisted the move by highlighting the ecosystem’s ongoing issues with carbon emissions, money laundering and uncertainties within the nonfungible token (NFT) market.

Moreover, the backlash also resulted in numerous users ending subscriptions to Discord Nitro, the platform’s premium service offering that costs $4.99 per month and $49.99 for a year. In the words of Discord user Olivia:

On the other side of the spectrum, many users from the gaming community also see this move as a step in the right direction. Responding to Olivia, another user named Bryce NFT argued:

“You really just called the NFT space a ponzi scheme without valid evidence. Don’t comment on anything when you have no idea about the space.”

Related: MetaMask integrates with Bitfinex Pay amid growing demand for crypto payments

MetaMask integrations have onboarded millions of users to the crypto space. On Friday, crypto payment gateway Bitfinex Pay launched a MetaMask integration to its platform.

As a result of the MetaMask integration, Bitfinex Pay opened doors to over 10 million new users for sending and receiving payments in cryptocurrencies. Speaking to Cointelegraph, Bitfinex Pay chief technology officer Paolo Ardoino said that the digital assets are going to disrupt the current payment industry and that it is “not a question of if but just when.”

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Status plans to incentivize node operators for decentralized messaging protocol

According to the project, one of the pushes for its development was Ethereum co-founder Vitalik Buterin recently encouraging developers to consider non-financial applications for DeFi.

Ethereum-based project Status has started an incentivization program for node operators around its decentralized peer-to-peer messaging protocol, Waku.

In an announcement today, Status said it would be rolling out the first phase of a program to encourage people to set up and run nodes used by Waku, a private messenger based on the Whisper protocol. The project said it planned to offer up to $100 worth in its native token SNT to 100 people participating in a three-month program.

The Status team forked Whisper to create Waku in 2019. The protocol uses community owned and operated nodes to route messages through the network rather than the “traditional” client-server model, with the project working on a peer-to-peer messaging service aimed at competing with major firms like WhatsApp, Telegram, and Signal.

“Using peer-to-peer networks for personal communication is the only reliable way to escape censorship,” said former Cointelegraph reporter Andrey Shevchenko, who will be running one of the nodes. “Status has clearly put a lot of effort into this to make it technically viable so I’m curious to see where it goes.”

According to the project, one of the pushes for the development of the protocol was Ethereum co-founder Vitalik Buterin recently encouraging developers to “go further” in innovating beyond the typical boundaries of decentralized finance, or DeFi. Buterin said that non-financial applications for Ethereum, including decentralized social media, could serve this purpose.

Related: Status, an Ethereum Private Messenger Goes Waku on Telegram

The Status rewards program provides a small incentive for participants to provide they have set up and maintained one of the nodes. The project ran a pilot in South Korea — where it plans to have 25 nodes up and running — but also aims for a large presence in Latin America.

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