Data sovereignty has become one of the most significant concerns for enterprise players today as more information and new technologies arise to address evolving data requirements. With regulations like the GDPR, it is now imperative to redesign data sovereignty as a form of information norms for specific geographies. Its in this area that enterprise enablers like CyberConnect, who operate a decentralized social graph protocol, attempt to alter the narrative.
CyberConnect, based in California, has announced a new $15 million funding to simplify its development capabilities for developers to alleviate the Cold Start problem, provide richer social features, and restore data ownership to users. The proliferation of consumer data, the unlimited authority of social networking sites, and the increasing analytical power of large corporations have made the Web3 environment more problematic. This developments are causing concern about data ownership, as more users demand ownership of their personal data.
In a press release from CyberConnect, Wilson Wei, the company''s cofounder, said that large social networks distribute social graphs and often hoard such data for two reasons: to prevent competition and to increase corporate interests.
According to Wei, users should be able to traverse Web3 applications with their social graph as part of their identities, while developers are also able to prioritize improving services and content. This is the trend that CyberConnect has demonstrated in Web3.
Data sovereignty and social connectivity
The rise of consumer privacy concerns has increased demand for alternative data storage storage silos that are known to protect data integrity and prevent individual data ownership. This is typically because they are either owned or controlled by no large organizations.
Avivah Litan, a vice president analyst at Gartner, predicts that 25% of firms will integrate legacy applications and services with decentralized Web3 applications, and this is a trend they anticipate. Applications that were previously considered impossible are going to new heights.
According to Litan, users will be able to control their own data, privacy, content, and algorithms, and smart contracts will rely on trustless computing to avoid delaying trust and pay intermediaries.
The lack of social graph ownership leads to misalignment between users and platforms. Today, social application developers who have unable to access composable data needed to create network effects are confronted with serious bootstrapping difficulties. This is another reason why, today, the lack of data standards and economic scalability, Web3 development stacks continue to depend on central data storage silos for the storage of social data. This also hinders users from preserving ownership of their data.
The implications of a decentralized social graph protocol
Social graphs must be more accessible to developers, which will enable them to create data-rich applications that can handle manual data scraping. CyberConnect claims that its composable social graph can assist developers in navigating network effects and enables them to create personalized or contextualized social features in decentralized applications, while transferring ownership to users.
According to Yat Siu, an owner of Animoca Brands, the CyberConnects approach has allowed Web3 users to maintain their connections between platforms, enabling interoperability, giving users more control to develop comprehensive identities across all applications, and allowing developers to build on this ecosystem.
Gartner predicts that public cloud services spending will quadruple $480 billion in 2022, but organizations must begin to prioritize data infrastructure and governance. CyberConnect claims its social graph protocol currently accounts for 9 million connections across 620,000+ addresses that help decentralized applications (dApps) to develop personalized social experiences and bootstrap network effects. It also claims its protocol is already integrated by a wide variety of Web3 projects, including the Project Galaxy, Mask Network, Light So, Grape Art, Metaforo, and The Open Dao
The decentralized social graph protocol for CyberConnects is composed of two fundamental components:
- A developer-friendly software development kit (SDK) to streamline writing and managing social connection data in a decentralized, self-sovereign manner.
- Building a social data network that empowers dApps to leverage the indexed data and recommendations to build meaningful, personalized user experiences.
As decentralized peer-to-peer networks become more popular, CyberConnect feels its bounds for the transition via its social graph feature, which preserves social experiences and helps to prevent network effects. This investment round, led by Animoca Brands, which specializes in blockchain, gamification, and AI technologies, has come following a seed raise queried by Multicoin Capital last year.
Other investors who are putting their trust in CyberConnect include Delphi Digital, Protocol Labs, Tribe Capital, GGV Capital, Spartan Group, Amber Group, IOSG Ventures, Polygon Studios, and SevenX Ventures. According to Crunchbase, CyberConnect has raised $25 million in total funding since its establishment in 2021.