Blockchain is the digital technology that notably powers cryptocurrencies including the celebrated Bitcoin. But it is more of an encrypted method of keeping a record of digital transactions. It can be used as a tool to figure out who is credible on the internet.
From privacy to payments, the blockchain industry is eagerly waiting for what the networking giant Facebook has in-store. To get an idea of what could happen; industry watchers have turned their eyes to David Marcus. Being the president of PayPal and the in charge of Facebook Messenger for some time, he also sits on the board of Coinbase which is an American based cryptocurrency exchange.
David’s current and previous roles have led to the assumption that Facebook could be interested in developing a payments product with blockchain. It is currently being discussed whether the social media giant will deploy blockchain for creating its own cryptocurrency for allowing payments on the platform.
Recently, Facebook has received plenty of negative responses from both industry gurus and users. The network is in the midst of a few big controversies. However, it can still save its reputation.
A few internal changes will be made and a blockchain division is going to be added to Facebook’s structure. Although not the last, it could be one of the biggest management shakeups to date.
Facebook may also need to prepare for the possibility that blockchain becomes a standard payment method. David Marcus leads the current internal team that is determined to explore the developments which are currently taking place at the network. Facebook may need to merge its power before things get out of hand. Tech-gurus predict that some higher-ups will be given more accountability across the company’s various ventures. The network’s CPO Chris Cox is going to oversee Messenger and Instagram, as well as Whatsapp.
As two co-founders have recently left the company, changes are more than necessary at this time. Shifting employees around within the parent company is going to take all services in a revolutionary direction to move things forward. Until now, it remains unclear if other motives are at play concerning these developments.
Maybe the most important announcement is going to come in the form of how the network is introducing a blockchain division. Blockchain enthusiasts are positive that the technology is going to make an affirmative impact on social media.
There is plenty of gossip as to how the network will embrace blockchain. It may also result in cryptocurrency support, even though no such plans have been officially announced. Marcus has confirmed that the network will start everything from scratch which implies that there will be an open-minded approach to blockchain.
There are many ways Facebook can incorporate the blockchain technology. The network doesn’t necessarily have to give up its centralized position on the market. But decentralization is not exactly an option the parent company has to pursue at this stage, and this is one of the big downsides of a Facebook blockchain project. This favors other upcoming social networks such as SocialX.
Zuckerberg has a knack for predicting what is going to take the market by storm. He also has a board that features venture capitalists Peter Thiel and Marc Andreessen, both of whom have been active investors in blockchain and crypto. It is unlikely that Zuckerberg will take an inappropriate decision.
Whether Facebook can successfully incorporate blockchain technology is an open debate. An obvious place to start with will be a payment system for Whatsapp and Messenger. Users highly anticipate a payment method to buy goods and send money on these platforms.
However, it is easier said than done. The technology is still nascent and has yet to prove that it is capable of serving hundreds of millions of users before it could work for billions. Do you remember a game called CryptoKitties that suddenly took off and consumed so much compute power that it resulted in a clogged up Ethereum network, knocking down other crucial projects? There still seems to be too many scalability challenges that need to be addressed.
Following the Cambridge Analytica scandal, users are looking for some good news from the company. Higher-ups should utilize all options at their disposal to come up with the best solution.
Final Thoughts
Although it is mind-boggling that Facebook would go for decentralization, the company may already have decided to take a leaf or two out of the blockchain’s book. In January, Mark Zuckerberg showed his interest in cryptocurrencies. Older speculations about what the network might do with its unique cryptocurrency include reward users for creating or sharing content.
Other social networks continue to embrace the trend, as Telegram launches its own rival to bitcoin. Even if Facebook does implement practical uses, it could be a while before users can see any result.
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