Facebook Explores Blockchain Technology and Might Roll Its Own Cryptocurrency
Facebook is preparing to enter the blockchain space, with the creation of a new group that will focus on exploring the use of technology within the social networking platform.
Last week, Facebook announced that its creating a blockchain unit led by one of its most important executives, David Marcus, which generated speculation among members of the blockchain world, because the social media company said little in public about what the group will be doing.
According to a report from recode, the team was created as part of the recent reorganization of senior executives of Facebook, and is part of the division of ‘new platforms and infrastructure’.
Sheila Warren, head of blockchain at the World Economic Forum told the FT Facebook could develop a digital token to enable micropayments on the social media platform. That could, in turn, result in a slew of new applications, she said. It would also be welcomed by publishers who want to get paid when Facebook users share and spread their content.
In an interview later, Facebook claimed: “Similar to many other firms, Facebook is discovering ways to use the power of Blockchain tech. This small new group will be hunting down a number of applications. We do not have anything additional to add”.
The group would be led by David Marcus, who is currently in charge of the Messenger app.
Time for a new challenge! After four amazing years leading Messenger, I’m going to setup a small group to explore how to best leverage Blockchain for Facebook. I will miss my fierce Messenger team, but I’m excited about the journey ahead. My full note: https://t.co/nBKAr7vyj9
— David Marcus (@davidmarcus) 8 May 2018
Reports from the new media have stated that the social media giant is also exploring the generation of its separate cryptocurrency. According to Cheddar (technology website), Facebook is taking this issue very seriously.
“On the other hand, sources familiar with the issue claimed that the social network does not have plans to conduct a so-called ICO (initial coin offering) by providing a restricted number of virtual tokens for the users to purchase at a fixed price,” the media report stated last week.
According to the report, Facebook’s motivation to embrace blockchain could be a competitive move to be ahead of any threat that comes from a rival. The company has been adept at quickly moving to kill the competition, whether it’s with Instagram or WhatsApp. In those two cases, it made purchases to bring them under its umbrella. It can’t buy blockchain, but it can create a unit to start working on it.
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