Bluesky Under Scrutiny: Unpacking Ownership, Funding, and Your Data in the Age of Surveillance
by Bella Robinson, "Call Off Your Old Tired Ethics Rhode Island"
Bluesky Under Scrutiny: Unpacking Ownership, Funding, and Your Data in the Age of Surveillance
The digital landscape has become a battleground for our attention and, increasingly, our data. As prominent social media platforms undergo dramatic shifts – notably with Elon Musk's acquisition and transformation of Twitter into X – many users have sought refuge in new digital spaces. Bluesky has emerged as a significant alternative, attracting a surge of users disillusioned with centralized control. But for those of us deeply concerned about privacy, data exploitation, and ethical governance, the crucial question remains: Who truly stands behind Bluesky, what are their intentions, and can this new platform be trusted with our digital lives in an era of mass surveillance?
This article dives deeper into Bluesky's unique structure, its financial backing, the people at its helm, and the very real implications for user data and control.
The Exodus and The Promise: A New Digital Home?
The mass migration from Twitter to Bluesky was largely fueled by a desire for a different kind of platform – one not subject to the whims of a single billionaire owner, and one that prioritized user experience and open principles. Bluesky’s appeal lies in its foundational vision: a decentralized social network built on the Authenticated Transfer (AT) Protocol. The promise is a "federated" system where users could, in theory, choose their hosting provider, control their data, and migrate their identity across different services.
Bluesky originated as an initiative within Twitter in 2019, initially funded by Twitter to explore decentralized social media. It spun off as an independent company in 2021, strategically establishing itself as a Public Benefit Limited Liability Company (PBLLC), and later converting to a Public Benefit C Corporation. This legal structure is a key differentiator, legally obligating the company to consider social and public good in its decision-making, not solely maximizing profit. This offers a glimmer of hope that its intentions might differ from traditional tech giants.
Who Are Bluesky's Guardians? Leadership, Values, and Stock Ownership
At the core of Bluesky's operation is its leadership, most notably CEO Jay Graber. With a background in decentralized technology, Graber was hand-picked by Jack Dorsey (then Twitter CEO) to lead the project. Her focus has been on the technical development and scaling of the AT Protocol.
The company states it is "owned by Jay Graber and the Bluesky team" (meaning its employees hold the majority of the equity). For a private company like Bluesky, the exact breakdown of individual stock ownership among leadership or the board is not publicly disclosed. This is standard for private entities, making it difficult to pinpoint exact control percentages based on individual shareholdings.
However, we can infer values from the prominent figures on Bluesky's board of directors:
Jeremie Miller: As the inventor of Jabber/XMPP, an early open messaging protocol, Miller’s presence signals a deep commitment to the foundational principles of open, interoperable communication.
Mike Masnick: The founder of TechDirt, a widely respected blog focusing on technology policy and civil liberties, Masnick is also the author of "Protocols, Not Platforms," a paper that champions the very decentralized, open-standard approach Bluesky aims to embody. His involvement strongly suggests a leaning towards user rights and freedom from centralized control.
Kinjal Shah: A general partner at Blockchain Capital, her presence reflects the significant financial backing Bluesky has received, bridging the world of venture capital with the decentralized tech vision.
It's important to clarify that a figure named Jeffrey Weber is not publicly listed as a core founder, current owner, or board member of Bluesky. It's possible this name is associated with a different project or an earlier, less prominent role. Our focus here remains on the publicly acknowledged leaders and decision-makers.
A significant point of recent change for Bluesky was the departure of Jack Dorsey from its board in May 2024. Dorsey, who initiated the project while at Twitter, cited disagreements with the company's direction, expressing a preference for X (formerly Twitter) and other truly decentralized protocols like Nostr. This event underscores that even within the decentralized space, there are differing visions for the future, and Bluesky is charting its own path.
The $15 Million Infusion: Control, Capital, and the "Blockchain" Factor
Bluesky's $15 million Series A funding round, led by Blockchain Capital, is a critical point of inquiry for user trust. When venture capital firms invest, they do so with an expectation of financial return. This typically means they acquire equity (an ownership stake) and often secure seats on the company's board of directors, allowing them significant influence over strategic decisions.
Does this mean Blockchain Capital "controls the board" or the company? While they will certainly have a powerful voice and influence given their lead investor status and Kinjal Shah's board presence, it's generally not 100% control unless they own a majority stake, which is rare for a Series A. It's a partnership: their capital fuels growth, and in return, they guide the company towards profitability. The Public Benefit Corporation structure is designed, in theory, to act as a counter-balance, ensuring that profit motives are weighed against public good.
Regarding the question of "good money" and potential control by figures like Trump or Musk, it's essential to understand:
Blockchain Capital is a venture capital firm. They are an investment entity that funds companies in the blockchain and Web3 space, not a political organization or a single individual. Their interest is in the financial success of Bluesky, aligning with its decentralized technology.
The "Blockchain" Connection: Bluesky's AT Protocol utilizes principles of decentralization, similar to those found in blockchain technology, for identity and data portability. However, Bluesky itself is not a cryptocurrency-based platform in the typical sense, nor does it operate on a public blockchain like Bitcoin or Ethereum. The $15 million is traditional venture capital, not a crypto investment by specific political figures. The fear of Trump or Musk directly controlling this funding or the platform via a "blockchain" backdoor is largely unfounded, as this isn't how their investments or this technology operates.
This funding is a necessity for Bluesky to build, hire, and scale to compete with established giants. The challenge is for Bluesky to maintain its user-centric promises while navigating investor expectations.
User Experience, Glitches, and The Pervasive Surveillance Question
As a relatively new public platform (Bluesky opened to general public access, without an invite code, in February 2024, though its development began in 2019 and it became independent in 2021), it's understandable that users might encounter glitches. Experiences with password resets (logged in on phone but not allowing login elsewhere) and the photo upload limitation (only from the app, not directly from a computer) are common "teething issues" for any platform in its early growth phase. These are important for Bluesky to address to improve user experience and retention.
However, the most pressing concern for many, especially in "a time of mass surveillance," is data privacy: "Who are they going to share information with, or are they going to sell it to marketing like everybody else?"
Bluesky's Promise vs. Current Reality: Bluesky's AT Protocol is designed for user control and decentralization, eventually aiming for a future where users have greater agency over their data and can even host their own content. However, currently, Bluesky (the company) operates a centralized service. This means, like other social media platforms, your data currently resides on their servers.
The Public Benefit Mandate: Bluesky's status as a Public Benefit Corporation should guide its data practices towards more ethical standards than purely profit-driven entities. This legal structure implies a commitment to considering user privacy and societal well-being alongside business goals. They are built on an open protocol, which means their code is auditable, fostering greater transparency.
Ongoing Vigilance: While the stated intentions and legal structure are promising, the digital landscape has shown us that trust must be continually earned. No online service can operate without collecting some user data. The crucial differentiator is how that data is used, whether it's anonymized, and the extent to which it's shared or monetized. Users must remain vigilant, scrutinizing any changes to privacy policies and observing their actions regarding data handling.
Conclusion: Navigating a New Frontier
Bluesky offers a compelling alternative for those disillusioned with the trajectory of mainstream social media. Its unique Public Benefit structure, leadership deeply committed to decentralized principles, and targeted venture funding present a powerful combination. It holds the potential to be a more user-aligned space than its predecessors, especially with its commitment to transparency through its open protocol.
However, it's also a platform in evolution, facing technical challenges common to new services and navigating the inherent tensions between growth, investor expectations, and its core decentralized mission. In a time where data privacy and digital freedom are paramount, understanding the intentions and actions of those building our online spaces is crucial.
As we observe Bluesky's journey, we must remain informed and engaged. For organizations like COYOTE RI, identifying and collaborating with platforms that genuinely champion user rights and transparency can be vital. By supporting and scrutinizing these new frontiers, we can collectively push for a more collaborative and just digital ecosystem that truly serves the public good.