The rapid pace of technological advancements continuously excites users, with Web3 being one of the most anticipated innovations. As the third generation of internet evolution, Web3 introduces a new concept centered on decentralization and user data control. With the aid of artificial intelligence (AI), Web3 now enables a more secure, personalized digital experience, allowing users to manage their digital identities independently without relying on third parties.
bythen, one of Skystar Capital’s portfolio companies, emerged as a new startup player contributing to AI-based Web3 solutions, particularly in the alter persona phenomenon, which strengthens the role of digital identity in the future.
Pseudonymity Trends: The Digital Identity Behind Bythen
In the digital realm, digital identity is a crucial aspect for users. Within Web3, this identity is elevated as users gain more control over the personas they wish to present. This shift significantly alters the dynamics of trust and interaction in digital spaces.
According to the “Avatars: Shaping Digital Identity in the Metaverse” report by Blockchain Research Lab in 2023, the market for digital identity, particularly avatars, is expected to grow exponentially as Web3 technology becomes mainstream. The market for these products is projected to reach $500 million by 2030, driven by the growing demand for personalized digital experiences.
This argument is supported by the younger generation’s pseudonymity trend on social media. Many of them maintain two distinct accounts—one real account for friends and family, and another anonymous account used for freer expression, often with starkly different usernames and content (der Nagel, 2017). They frequently use profile pictures of fictional characters, favorite celebrities, or even animals to keep their real identities hidden, allowing them to voice opinions more freely, particularly on sensitive topics like politics.
Kevin Mintaraga, Founder of bythen, highlights that this phenomenon reflects the increasing need for privacy and security, especially amidst threats like deepfake technology that can misuse personal information.
“Gen Z, in particular, is very active. They want equality regarding attribute bias. There’s a lot of attribute bias on social media, and we’ve also seen an increase in security concerns, especially with the rise of deepfake technology.”
Moreover, factors like social media attribute bias also drive the use of pseudonymous accounts. Not everyone feels comfortable in front of the camera or has the ideal appearance of an influencer. Thus, alternative identities through profile pictures become a way to build influence and gain opportunities without revealing themselves directly. “That’s why we believe that profile pictures should evolve into productive assets that I can use as my alternative identity,” Kevin adds, explaining the vision behind bythen.
The Alter Persona Phenomenon: A New Wave of Digital Identity
One of the most intriguing trends in the Web3 world is the “alter persona” phenomenon, or profile picture (PFP) culture. However, this is not just about avatars or digital art; it’s about creating and owning a unique digital identity that represents someone’s persona in the online world. These alter personas are often connected to NFTs (Non-Fungible Tokens), which provide ownership assurance in a decentralized web.
Seeing this vast potential, bythen offers services aimed at empowering individuals to own the IP (Intellectual Property) of their characters. They can then use these characters as personas on social media. Moreover, these characters, as each individual’s “digital twin” or “personalized AI agent,” can be trained to become AI, acting as a user’s digital representation, and as a basis for content creation.
“We can train it to be our companion. For example, ‘I’m hungry, can you order me some food?’ It can help you with that. Or, ‘Can you find me a ticket to Bali?’ It will find the cheapest one for you. Basically, we can give it tasks, whether it’s to be a companion or a digital twin, we can set it up,” Kevin elaborates.
Through bythen, we see that the convergence of AI and Web3 is no longer just a possibility. bythen has set the standard by focusing on AI solutions that not only align with Web3 but also address the concerns of most internet users. This is all made possible because Kevin emphasizes the importance of continuous innovation and focusing on consumer needs by listening to feedback and understanding their pain points to refine the solutions offered.
Additionally, “Skystar Capital invested in bythen due to its strong founding team with a proven track record, including the successful exit of Bridestory to Tokopedia. Moreover, bythen is strategically positioned in rapidly expanding markets across high-growth sectors like Chatbots, Intelligent Virtual Avatars, Extended Reality, and the Metaverse,” said Abraham Hidayat, Managing Partner.
At Skystar Capital, we aim to help visionary leaders act as catalysts for growth. Leveraging our extensive network across various sectors, including media, financial services, healthcare, hospitality, and education, we are ready to create a positive impact by empowering startups and facilitating their growth.
Ready to take your startup to the next level? Submit your proposal here or start a conversation with us at contact@skystarcapital.com!
Follow our social media accounts on LinkedIn and Instagram for more updates!
