Paragraph, a blockchain-based publishing platform, has acquired its rival Mirror in a deal that leads to the creation of a new web3 social media app, "Kiosk."

Following the acquisition, Mirror will continue operating independently for a time before merging with Paragraph. However, Mirror's developers will turn their attention to building the new "Kiosk" app while maintaining their existing platform.

"Kiosk" will be built on the Farcaster Protocol, a decentralized framework on Ethereum that facilitates social media-like features with the additional ability to track and trade digital assets.

Mirror's Pivot to A New Web3 Social Platform Denis Nazarov, Founder of Mirror, described the new platform as a social space where users "not only see what people are saying, what they're liking and who they're following - but also what assets they are buying." He added, "We think that the whole idea of asset ownership and collection is not just transactional, it's also social."

While financial details were not disclosed, Colin Armstrong, Paragraph's Founder, indicated the deal satisfied both parties: "Everyone is very happy with the outcome. Mirror gets to pursue their new product, and the Mirror product continues under someone dedicated to publishing."

Union Square Ventures, an investor in both startups, facilitated the agreement.

The move signals Mirror's pivot towards creating an innovative web3 social experience centered around digital asset ownership and curation. By leveraging Paragraph's existing publishing infrastructure and the Farcaster protocol's capabilities, "Kiosk" aims to blend conventional social networking with web3 digital collectibles in a new way.

As web3 technologies continue evolving, platforms like "Kiosk" could reshape how users engage with digital assets and online communities in a more interactive, social manner. The acquisition allows both companies to realign their focus while joining forces on an ambitious new frontier in social media.