Facebook’s Blockchain Hype – The Possibilities
The blockchain technology has shown immense opportunity for the use of digital currency in different fields. In this blog, we are going to see the latest exploration of blockchain by Mark Zuckerberg’s Facebook. It has shown interest in experimenting with digital currency and is ready to introduce FaceCoin. FaceCoin will be a decentralized social network which will work around the FaceCoin cryptocurrency (FC). This will bring in a major revolution in the way we interact with the social network. The decentralized nodes are used to supply bandwidth and data to the platform and in the exchange are rewarded with tokens.
The company is preparing to launch its own version of Bitcoin to be used in its messaging applications WhatsApp, Messenger, and Instagram. Facebook gave the task of exploring blockchain to one of its corporate development staff in the mid-2016. Till then Facebook has come a long way towards bringing the crypto successfully in the market.
Facebook’s Blockchain Strategy
We all know the popularity of Facebook. There are more than 2 billion users worldwide. The Facebook Connect which is a single sign-on has made it easy for users to sign in to the other sites with their Facebook login details. This helps the company get more user data for targeted advertising.
Here every person’s online ID is owned by a single company and the majority of voting power is with Mark Zuckerberg, so the power is concentrated in a single person’s hand. Today a number of such identity-focused startups has emerged which are using blockchain technology to challenge Facebook.
Facebook arranged its largest reorganization till date in May 2018 which was the most transparent move around blockchain. It created a group under David Marcus who formerly led Messenger (Facebook’s chat app) and is also ex-PayPal president. His role was to find out the way by which they could best utilize Blockchain across Facebook. Kevin Weil (former VP of product at Instagram) along with few others joined the group.
Facebook’s Longstanding Interest in Cryptocurrency
It’s worth noting that Facebook has always been serious about building technology relating to digital currency. It had pursued IP related to digital currency in 2007 only. The company had applied for a patent allowing giving gifts via social networks using digital assets also. However, at that time nobody knew about blockchain or crypto but at least we can’t deny the fact that Facebook envisioned the technology relating digital assets.
Facebook plans to expand its reach by bringing in new offerings and blockchain presents a huge possibility. Let’s state briefly the areas where the technology can prove to be a real boon.
- Incentivizing E-commerce– Facebook already has the maximum reach which it can use to distribute its crypto tokens and increase the likelihood that it gets used as money. FaceCoin can easily influence payments, e-commerce, banking, and many more.
- Payments for services and content creators– Josh Constine of TechCrunch found that it is possible to offer up to 3% discount on everything which is purchased using FaceCoin because there are no intermediaries and processing fees involved.
- Apps for banking– facebook intends to partner with banks may be to build a branchless bank utilizing their technical know-how.
- Exchanges– as facebook further explores into blockchain it could enter the Coinbase’s cryptocurrency exchange arena also.
- Identity tech– it is possible to build a login layer for decentralized apps (dApps) like Facebook Connect having multiple layers of login processes.
Opportunities lie where the possibilities are. The blockchain startups are turning their popular services into dApps. Facebook can also expand its online ID abilities and FaceCoin has all the chances to change the financial world.
One more big advantage for the company is that a FaceCoin can be used to encourage users to engage with Facebook platforms. We often think about whether we should upload the family photo or write a status due to recent account mishaps. But if you are offered to say one FaceCoin per photo upload, obviously the users will look forward to spending more time on the platform.
Facebook is rich in resources, is a technology giant and is common among consumers and all kinds of businesses. So we can hope that it can utilize the blockchain in the best possible way.