Analysis of Status: Mobile Messaging Application in the Ethereum Ecosystem

Source: cryptopedia

Compiled by: Hu Tao, Chain Catcher

Overview of Status

Status is an open-source messaging platform and mobile interface that provides simplified access to the growing ecosystem of Ethereum dApps from a single iOS and Android-friendly application, combining peer-to-peer instant messaging, an encrypted wallet, and a Web3 browser.

Since its launch in 2017, Status has provided a mobile portal for the Ethereum ecosystem and a unique messaging platform with a wide range of advanced features. While providing a mobile-friendly entry point for the Ethereum ecosystem, Status offers a cross-platform unified user experience, user-centric data and advertising models, and access to next-generation blockchain-supported financial and legal services.

The Status App is More Than Messaging

While the Status Network is often described as a social media platform, the project is actually developing a wide range of features that are integrated into a one-stop gateway to the Ethereum network. Generally, the products of Status can be categorized into three main functionalities:

dApp Management: As of 2020, the Ethereum blockchain hosted nearly 2,000 active dApps, and browsing these vast applications can be overwhelming. Status aims to be the hub for any type of Ethereum-related activity and has developed various features that enable users to browse and interact with Ethereum's dApps.

Secure Messaging: Status provides public chat and secure end-to-end encrypted private messaging through a peer-to-peer network instead of a central server, ensuring that no one can view private messages except for you and your intended recipient. Additionally, since messaging on Status is conducted through a decentralized network, it is resistant to censorship and resilient, as there are no single points of failure. Therefore, Status ensures that users maintain complete control over their communications.

Digital Asset Management: The Status Network offers a secure cryptocurrency wallet that allows users to send payments directly to contacts anywhere in the world through chat. The chat and wallet keys of Status users are not connected in any way, meaning that even if your chat key is somehow compromised, your funds will remain secure. Thus, Status enables you to keep a close eye on your crypto assets while maintaining the ability to facilitate secure, borderless payments easily.

The Status app packages these features with iOS and Android compatibility, combining all of the above with a Web3 browser. This approach embodies the company's goal of bringing the benefits of blockchain-supported applications to a broader market.

Moreover, while the Status app is its flagship product, the company is also developing many other products, including Keycard, a hardware wallet that functions similarly to a contactless debit or credit card. Status is also working on launching Teller, a decentralized peer-to-peer fiat-to-cryptocurrency exchange.

Additionally, Status intends to disrupt the existing advertising models used on the internet, which are highly beneficial to companies rather than individual users. With Status, you can choose how much time, attention, and data to share with advertisers and other third parties in exchange for tangible services on the platform—or you can opt to pay for services outright without sharing data or receiving ads from third parties. Therefore, Status not only improves how users interact with blockchain-based applications but also aims to pioneer a more equitable, user-centric, and fair online experience.

Status, SNT Tokens, and Governance

The Status app operates as an open-source product on a freemium model, requiring no phone number, email address, or bank account from users when creating an account. However, since the Status Network does not profit from selling ads or sharing personal user data with third parties, the platform charges users microtransaction fees for notifications and storage to fund the project's operational costs.

Furthermore, Status is a decentralized autonomous organization (DAO), meaning that the project does not rely on a centralized governing body. Instead, members of the Status Network community have full control over development, such as which ecosystem features to implement or modify. This community-driven governance model is facilitated through Status's native ERC-20 token, SNT.

SNT token holders can initiate and vote on how the project should be developed. Any stakeholder on the Status Network can submit proposals, and the voting weight of community members is proportional to the number of SNT tokens they hold. In the early days of the network, the community primarily voted on software-related issues. However, as the network continues to evolve, the community may need to address and resolve increasingly complex social and structural issues.

SNT is also used to access and power decentralized services on the Status Network. This includes paying for basic services such as message forwarding and offline messaging, as well as using dApps like Status's Teller Network, which allows SNT holders to find nearby users to exchange their cash for digital currencies and assets. SNT is also used to incentivize and reward network participants for running nodes, which helps ensure that the Status platform continues to operate smoothly even if all nodes in the clusters hosted by Status go offline.

How Status's Social Network Builds Trust

The Status crypto platform includes many features designed to protect user security and ensure trust. One primary method is the Tribute-to-Talk process, a spam prevention mechanism that requires you to deposit SNT tokens as collateral to send messages to users outside the network with whom you have not yet communicated. If the user verifies your message, the collateral is returned. If the message recipient does not respond, the tokens are rewarded to the recipient. This prevents the creation of fake accounts and spam on the network.

Additionally, Status implements a reputation model where stakeholders can deposit tokens to enhance another user's reputation—a digital version of vouching for someone, which helps build a trust network among users on the Status network. Discussion groups can even set a minimum reputation score as a requirement for joining their group, significantly increasing the cost of maintaining active fake accounts.

To enhance account security, Status creates a unique public key username for each user while providing a unique method for recovering accounts in case of device loss or inaccessibility. Users are given five recovery keys that can be shared with other trusted individuals. Any combination of three of these keys can be used to recover the account. This helps prevent one of the common issues and fears associated with blockchain wallets: a single point of failure that could lead to permanent loss of assets.

Status's multifaceted product includes elements such as messaging, social media, cryptocurrency wallets, and an application store for the Ethereum ecosystem—all within a single mobile portal. By prioritizing privacy, censorship resistance, and community-driven development, Status offers a user-driven alternative to the current standards on the Internet.