Key takeaways
- Free for personal use with 2000+ community plugins
- Local-first with plain markdown files you own forever
- 100% user-supported with no outside investors
FAQ
What is Obsidian?
Obsidian is a free, local-first markdown knowledge management app with bidirectional linking, a graph view, and thousands of community plugins.
How much does Obsidian cost?
Obsidian is free for personal use. Sync costs $4-8/month, Publish costs $8-16/month, and commercial licenses start at $50/year per user.
Who competes with Obsidian?
Competitors include Notion, Roam Research, Logseq, and Bear in the knowledge management and note-taking space.
Executive Summary
Obsidian is a personal knowledge management application founded in 2020 by Shida Li and Erica Xu during COVID-19 quarantine. Built on the principle that "your notes are yours," Obsidian stores everything as local plain-text markdown files while providing powerful features like bidirectional linking, graph visualization, and over 2,000 community plugins. The app is free for personal use and 100% user-supported without outside investors.
| Attribute | Value |
|---|---|
| Company | Dynalist Inc. |
| Founded | 2020 |
| Funding | Bootstrapped (100% user-supported) |
| Employees | ~10 |
| Headquarters | N/A (Remote) |
Product Overview
Obsidian treats links as first-class citizens, enabling users to build interconnected knowledge graphs from their notes. Unlike cloud-based alternatives like Notion, notes are plain markdown files stored locally on your device. The app is highly extensible with thousands of community plugins and themes.
Key Capabilities
| Capability | Description |
|---|---|
| Bidirectional Linking | [[wiki-style]] links between notes with automatic backlinks |
| Graph View | Visual representation of note connections |
| Community Plugins | 2,000+ plugins for customization |
| Local-First | Plain .md files stored on your device |
| Canvas | Infinite whiteboard for visual thinking |
Product Surfaces / Editions
| Surface | Description | Availability |
|---|---|---|
| Desktop | Windows, macOS, Linux | GA |
| Mobile | iOS, Android | GA |
| Sync | End-to-end encrypted sync service | Optional add-on |
| Publish | Host notes as a website | Optional add-on |
Technical Architecture
Obsidian is built with Electron for cross-platform support, with a plugin API that enables deep customization. All data stays local by default, with optional Sync service using AES-256 end-to-end encryption.
Key Technical Details
| Aspect | Detail |
|---|---|
| Framework | Electron |
| Storage | Local markdown files (folder on disk) |
| Sync | Optional Obsidian Sync (E2E encrypted) or third-party |
| Export | Native markdown; plugins add PDF, HTML, etc. |
| Open Source | No (API is open; core is proprietary) |
Strengths
- True ownership — Plain markdown files you control forever, no lock-in
- Free forever — Personal use is completely free with no feature gates
- Massive ecosystem — 2,000+ plugins enable virtually unlimited customization
- Privacy-first — Local storage by default; optional sync is E2E encrypted
- Active community — Large, engaged user community with extensive tutorials and templates
Cautions
- Learning curve — More complex than simpler alternatives; markdown and linking concepts take time
- Plugin dependency — Many useful features require third-party plugins with maintenance risk
- No collaboration — Single-user focused; no real-time collaboration features
- Electron overhead — Heavier than native apps; can slow with large vaults and many plugins
- Sync costs extra — Native sync is $4-8/month; free alternatives require technical setup
Pricing & Licensing
| Tier | Price | Includes |
|---|---|---|
| Personal | Free | All core features, unlimited use |
| Sync Standard | $4/month | 1 vault, 5GB, 1 year history |
| Sync Plus | $8/month | 10 vaults, 10GB, unlimited history |
| Publish Standard | $8/month | 1 site |
| Publish Plus | $16/month | Unlimited sites |
| Commercial | $50/year/user | License for work use |
Licensing model: Freemium with optional paid services
Hidden costs: Official sync/publish adds significant cost; commercial license technically required for work use
Competitive Positioning
Direct Competitors
| Competitor | Differentiation |
|---|---|
| Notion | Obsidian is local-first and free; Notion is cloud-based with collaboration |
| Roam Research | Obsidian is free with local files; Roam is $15/month cloud-only |
| Logseq | Both are local-first; Logseq is open source with outliner focus |
When to Choose Obsidian Over Alternatives
- Choose Obsidian when: You want powerful knowledge management with local ownership
- Choose Notion when: You need collaboration and don't mind cloud lock-in
- Choose Bear when: You want simpler, more polished notes without complexity
Ideal Customer Profile
Best fit:
- Knowledge workers who value data ownership
- Power users who enjoy customization and plugins
- Privacy-conscious users who want local storage
Poor fit:
- Non-technical users wanting simple notes
- Teams needing real-time collaboration
- Users who don't want to learn markdown
Viability Assessment
| Factor | Assessment |
|---|---|
| Financial Health | Strong |
| Market Position | Leader |
| Innovation Pace | Rapid |
| Community/Ecosystem | Very Active |
| Long-term Outlook | Positive |
Obsidian's bootstrapped, user-supported model aligns incentives with users rather than investors. The passionate community and extensive plugin ecosystem create strong network effects.
Bottom Line
Obsidian is the power user's choice for personal knowledge management—highly flexible, deeply customizable, and committed to user ownership. Its complexity is both its greatest strength and biggest barrier.
Recommended for: Knowledge workers, researchers, and power users who want maximum flexibility and data ownership.
Not recommended for: Casual note-takers, teams needing collaboration, or users who don't want setup/maintenance overhead.
Outlook: Dominant position in personal knowledge management; community ecosystem is a major competitive moat.
Research by Ry Walker Research • methodology