Facebook Could Use the Blockchain To Get Money At the Same Time That It Kills Fake News
Facebook is developing blockchain-based technology. It’s probably Facebook Coin. How do we know that? Several sources which appeared on both Bloomberg and the New York Times have confirmed the story so far.
Facebook has not directly affirmed that it is creating a Facebook Coin, but everything indicates that it is and the company admitted to being exploring the blockchain.
According to Facebook’s direct response to Computerworld, the company is exploring ways to use the blockchain technology or distributed ledger tech (DLT), as it is also called. However, they do not have “anything further to share”.
We may not have any official quotes, but several unnamed sources say that Facebook Coin is a reality. So what will this mean?
Some reports affirm that Facebook wants to use its new token for payments on WhatsApp, just like Venmo and PayPal are often used. The payments would be made without any middlemen, as everything would be made with the blockchain.
The reports are not fully sure yet whether Facebook will choose to create a stablecoin pegged to the USD or if the company is set to create a real cryptocurrency. The stablecoin strategy is more likely, though. Some people say that a Facebook Coin could be worth up until $19 billion USD by 2021, as we have reported here.
Basically, merely establishing this new revenue stream could make Facebook shares go up the roof. Blockchain payments eliminate central banks from the equation, which also seems promising for the company.
Several companies are starting to emit cryptocurrencies or similar technologies now, so it is not very likely that Facebook will be behind. For instance, JPMorgan Chase has launched its own internal digital coin, JPM Coin, and IBM has launched its own payment service which uses a stable coin.
Using Facebook Coin To Buy And Advertise
One of the main uses for the blockchain in this scenario could be as a way to make one-click purchases possible. At the moment, if you want o buy an advertised product on the social media platform, you will have to use your credit card.
This can be a pain for some users as they lack functions that would make the payments simpler. Facebook Coin can be the solution and this would add more revenue to the advertisers on Facebook.
Because of this, the blockchain could mean a way for Facebook to compete with Apple Pay, Google Pay and similar apps. Facebook has a huge number of users already on the platform, so creating a solution that would be practical to them would be an instant success.
Fighting Fake News
Another interesting use case for Facebook Coin was cited by Jack Gold, the president of J. Gold Associates, in a report made by Computerworld. Everybody knows how fake news is bad for society, so Facebook could start to fight them using their coin.
They could do it by requiring everybody to be registered and having an audit trail, which could be used to detect the spread of fake news on the platform.
The blockchain technology could enable all that, however, it is not clear how would Facebook do it when the company sorely lacks the ability to actually find the fake news and determine when they are fake even today.
The main problem, however, is that Facebook already had issues with selling the data from the clients in the past, so how to actually convince people to register? These are all questions which will be answered when we finally discover more about Facebook Coin.