Farcaster Protocol handles user data in a hybrid manner:

1. On-chain Data: User identity-related data is stored on-chain1234. This includes actions like creating an account and paying rent to store data14. The on-chain systems are implemented as contracts on OP Mainnet1. Actions are performed on-chain only when security and consistency are critical1.
2. Off-chain Data: Information related to posts and engagements is kept off-chain1234. Farcaster’s offchain system is a peer-to-peer network of servers called Hubs which store user data1. The majority of user actions are performed offchain1. These include posting a new public message, following another user, reacting to a post, and updating your profile picture1.

In terms of geolocation data, the Farcaster protocol currently does not support the use of geolocation data5. However, there are discussions about integrating geolocation capabilities into the Farcaster protocol5. Two approaches have been proposed5:

• Structured Geolocation Types: This approach utilizes a defined set of types that categorize geolocation data according to its granularity5. It allows for clear and consistent communication of the location detail being shared5.
• Simple String Field: An alternative option is to use a single string field for geolocation5. This method offers flexibility, allowing clients to determine the format and validity of the location data themselves5.

In summary, Farcaster Protocol uses a hybrid approach to handle user data, with identity-related data stored on-chain and post-related data stored off-chain. The protocol is also considering the integration of geolocation data5.