What Is Bluesky?
Bluesky is a decentralized social media platform originally conceptualized by former Twitter CEO Jack Dorsey. Designed with a Twitter-like interface, Bluesky employs an open-source framework known as the AT Protocol, which supports federated networking and community-specific moderation. Unlike centralized platforms, Bluesky offers transparency in its development and aims to empower users with greater control over their social experience. Initially launched in 2019 as a Twitter-funded project, Bluesky became an independent public benefit corporation following Elon Musk’s acquisition of Twitter (now rebranded as X). As of May 2024, the company is led by CEO Jay Graber, with Dorsey no longer involved in day-to-day operations or board membership.
User Experience and Features
Bluesky’s user interface mirrors many familiar aspects of X. Users create handles in the format @username.bsky.social and can post messages up to 256 characters, including images and videos. The platform offers functionalities such as replies, reposts, likes, and sharing via iOS Share Sheet. A personalized “Discover” feed replaces the former “What’s Hot” section, delivering algorithmically curated content. The platform also supports custom feeds allowing users to subscribe to different algorithms, tailoring their timelines. Recent additions include direct messaging with emoji reactions and a vertical video feed to rival TikTok. The introduction of a “Starter Pack” helps new users quickly find curated accounts and content, enhancing initial engagement.
Growth and User Base
Since its launch, Bluesky has experienced significant growth, surpassing 30 million users as of February 2025. This expansion has been fueled by dissatisfaction with X’s policy changes, including controversial updates to the block function and the use of user data for AI training. The platform has attracted a diverse user base, including public figures such as Alexandria Ocasio-Cortez, Barack Obama, and Hillary Clinton, as well as news outlets like Bloomberg and The Washington Post. Bluesky also introduced a blue check verification system to authenticate notable users.
Decentralization and the AT Protocol
Bluesky is built on the AT Protocol, a decentralized, open-source framework that allows for federated social networking. This means users can move seamlessly between independently operated communities while retaining their followers, handles, and data. The AT Protocol aims to reconstruct Web 2.0 social experiences with open technology, mitigating risks associated with centralized control and API restrictions common on platforms like X, Instagram, and Reddit.
Monetization Strategy
Bluesky currently operates as a free platform but is exploring revenue streams that avoid reliance on advertising and user data sales. It has introduced paid services such as custom domain handles and is developing a subscription model, Bluesky+, offering premium features like enhanced video quality and profile customization. Additionally, Bluesky has launched Skyseed, a $1 million fund to support developers building on the AT Protocol, fostering ecosystem growth and innovation.
Moderation and Content Policies
Moderation remains a critical challenge for Bluesky. The platform employs automated tools to flag content violating its Community Guidelines and has increased its moderation team to approximately 100 members to manage rising reports of harassment and intolerance. Bluesky also offers advanced moderation features, including user lists and reply restrictions. The Ozone tool enables users to run independent moderation services, granting unprecedented user control over content. Despite these efforts, Bluesky has faced criticism over handling racist content and controversial accounts, reflecting broader tensions in moderating decentralized social spaces.
Security and Privacy
Bluesky has enhanced account security by implementing email verification and allowing users to opt out of public indexing of posts. The platform explicitly avoids using user content for training generative AI models, contrasting with X’s policies.
Bluesky shares similarities with Mastodon in its decentralized architecture but offers a more intuitive user experience. Unlike Mastodon’s complex instance system, Bluesky provides a unified network while planning to enable federation for user choice. Compared to X, Bluesky emphasizes user control, privacy, and community moderation, positioning itself as a viable alternative amid growing dissatisfaction with X’s policies and direction.
FinOracleAI — Market View
Bluesky represents a significant experiment in decentralized social networking with the potential to disrupt traditional social media paradigms. Its open-source AT Protocol fosters innovation and user empowerment, addressing growing concerns around data privacy and centralized control.
- Opportunities: Expansion driven by dissatisfaction with centralized platforms; potential to attract users seeking transparency and control; monetization through premium subscriptions and developer ecosystem grants.
- Risks: Moderation challenges may hamper user retention; competition from larger networks like Threads and X; slower growth pace compared to major incumbents.
Impact: Bluesky’s growth underscores a market appetite for decentralized social media alternatives, but sustained success requires balancing user experience, effective moderation, and monetization without compromising its core values.
