Decentralized social network protocol startup Farcaster said today it has raised $150 million in new funding on a $1 billion valuation to further grow its user base and add new in-protocol features such as channels and direct messaging.

Founded in 2021, Farcaster offers a decentralized social network protocol that allows developers to build interoperable applications where users own their identity and data. The idea behind Farcaster is to provide an open platform where multiple social applications can coexist and users are not locked into a single platform, such is the case with services such as Facebook and X.

The key features of what Farcaster has built include full user control and ownership. Users have complete control over their identities and data, allowing them to switch between different applications and services without losing their social content graph.

Interoperability is core to the service, with Farcaster allowing different applications to interact with each other seamlessly. The idea here is that allowing different apps to interact helps promote a more open and connected social web.

Decentralization is the other key feature. Forecaster leverages blockchain technology to reduce the reliance on centralized platforms, thereby enhancing privacy and security for users.

Under the hood, Farcaster runs on “Optimism” blockchain infrastructure to ensure transparency, security and decentralization. By not relying on central servers, the service provided by Farcaster is said to minimize the risk of data breaches and censorship.

Farcaster also utilizes smart contracts — self-executing contracts written into the code — to govern interactions within the network, from posting content to social engagements. As noted by Decrpyt, this not only automates certain processes but also introduces a layer of programmability and customization to social networking.

While far from a household name, Farcaster says it has seen strong growth, with 350,000 paid signups since October and a 50-fold increase in network activity. “There are hundreds of developers building on the protocol and a growing number of apps and frames for people to use,” said co-founder Dan Romero.

Paradigm Operations LP led the round, with a16z crypto, Haun Ventures LLC, Union Square Ventures LLC, Variant Fund LP and Standard Crypto Holdings Ltd. also participating. Including the new funding, Farcaster has raised $180 million to date, based on data from Tracxn.

Image: Farcaster