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• Editor's note: This article is from Blockchain World (ID: car098) and is published with permission.

• Yesterday, FB CEO Xiao Zha sent a 3,200-word long article explaining the strategic shift of FB. Seeing the end, WeChat users can breathe a sigh of relief, Facebook gave up the Chinese market.

• Facebook's social media strategy "changes from a city's digital plaza to a family's digital living room." The company's profit model will gradually abandon the advertising model that violates user privacy.

• Utilize blockchain technology to comprehensively promote the data connection of the three major instant messaging APPs - only WhatsApp among Facebook's applications currently uses encryption and coding technology.

In fact, we have already introduced the transformation that Xiao Zha mentioned yesterday in the article a week ago. At that time, we believed that opening up the three major instant messaging systems and adding the blockchain payment function would be an important enterprise transformation. However, it is better to get confirmation from Xiao Zha.

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• Zuckerberg's point of view

• In the future, Facebook will focus on creating a more private and secure online social environment, focusing more on private conversations rather than public information sharing.

• Open social networking still has a place in the future, but the bigger opportunity lies in "building a simpler platform that focuses on privacy first." We've already seen private messaging, short story sharing, and small groups as an evolution of online communication. fastest field.

• In the past 15 years, Internet products such as Facebook and Instagram have helped the world build one after another "digital squares by cities", but people are beginning to urgently need more private "digital living rooms for families". It would be a landmark transformation for Facebook

• Facebook's social media model is about to become an end-to-end model: focus on the most basic and private application scenarios, start with instant messaging, make it as safe as possible, and then build more ways for people to interact on top of it. Including phone calls, video chats, groups, stories, commerce, payments and ultimately a platform for more private services. (does it look like wechat)

• At the same time, Xiao Zha also believes: "Adhering to this principle may mean that our services will be blocked in some countries, or we will not be able to enter other countries in the short term," he wrote. "It's a trade-off we're willing to make." Well, the horses keep running, the dances keep dancing, and tomorrow will be sunny!

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• How will Facebook complete the blockchain transformation?Product planning changes:Facebook will issue coins from three wholly-owned applications of Facebook: WhatsApp, Messenger, and Instagram. its own2.7 billionof monthly active users. Blockchain will reshape Facebook's user system, advertising experience, online game payment system, and more importantly, FacebookCoin will become the most widely circulated Internet currency on Odaily. In the future, it will be extended to all partners using the Facebook ecosystem around the world through the API interface. become a5.1 billion people

• blockchain ecosystem. And eventually break away from the Facebook system.Profit model change:Completely change the profit model of the Internet, from an Internet social platform that transmits information to a blockchain financial consortium that transmits value.Facebook's board of directors will become the Federal Reserve of the Internet world, and will be responsible for formulating the monetary policy of the Internet world. Issue encrypted stable currency anchored to legal currency.To make up for the deficiencies of the World Bank system in the cross-border flow of small private capital. Also given to Facebook

• The ability to cross a country's capital and foreign exchange controls.

• Impact on entrepreneurship: There are currently about 23 million different Bitcoin wallets and about 33 million Ethereum wallets in the global market. Even if a user has registered multiple wallets, these user numbers are not even a fraction in front of Facebook's 2.7 billion active users. The industry generally believes that the entry of Facebook has brought the era of individual innovation of the blockchain to an early end. Future blockchain entrepreneurs must either withdraw from the market or choose platform-based entrepreneurship.FBC Currency Value Scheme

• : According to the New York Times, there are three options

• Solution 1: At present, Facebook has communicated with some exchanges to issue FacebookCoin. Currently 1:1 anchored to the US dollar. Operate as a subsidiary.

• The second option is to link with the US dollar, euro, and renminbi (another news is the Indian rupee), formulate a "basket" plan, and reserve the above three currencies at the same time in the company's international account where the stable currency is linked, and finally Towards the form of a fund.

The third option is completely different from the first two "collateralized stablecoins". It is a "mixture of credit currency and mortgage currency". The value is generated through "behavioral mining + user recharge". The currency is generated by the legal tender of the user's own country.

A previous New York Times report "Facebook and Telegram Are Hoping to Succeed Where Bitcoin Failed" made waves with one stone. For a while, the major media have reported their own information about Facebook’s currency issuance! (Click to read the original text to view the address of the report.)According to Facebook job information and internal sources, the New York Times speculates that Facebook is

A highly confidential cryptocurrency project. Integrate cryptocurrency payments into its messaging service.

The news of Facebook's use of blockchain to reshape the ecology began when Facebook was involved in the "campaign gate" incident, and continued to ferment in the "privacy gate" incident. Blockchain can not only help Facebook's business transformation, but also make it more transparent and trustworthy.

According to a New York Times insider:

Facebook has hired more than 50 engineers to closely develop its cryptocurrency. Miraculously, this fifty-member team got a mysterious independent office. (Facebook advocates open offices, and there are almost no independent offices). What's even more amazing is that they can access the top-secret information of the other three social projects in Facebook through unique super permissions without any approval and reason, but the encrypted currency is closed. The team's access cards used a different code, and no other employees were allowed into their offices.

The 50 even includes some of Facebook's "best executives," including Instagram powerhouses James Everingham and Kevin Weil, and former PayPal CEO David Marcus, who also sits on Coinbase's board.

A website called "The Block" has been tracking the progress of Facebook's cryptocurrency project. Everyone can pay attention.

The American technology community believes that Facebook will start exploring new business models based on the blockchain.

The structure of information transmission is the core of a social product, and the goal of adjusting it is to change the "dependence of information products on advertising"

• WhatsApp

• Messenger

• Instagram 

The revolution started with three Facebook-owned appsThe monthly active users of these three apps are in2.7 billion people/month

About, that is to say, this revolution will affect 3/4 of the Internet population in the world.

According to an inside source in The Times:

In addition to the information transmission capabilities required for social functions, theirs will be "upgraded to add a chain of value transmission", they will have a unified public chain to store transaction information, and a unified credit-based stablecoin is popular among major Between applications, a unified account system and an API interface open to third parties provide transfer and payment functions, the ability to unify IDs across the network, and also provide local currency exchange capabilities based on the capabilities of financial partners.

The Times speculates:

The first step for Facebook should be to embed an encrypted digital wallet in the application of the above three monthly active users with 2.7 billion people/month, and build an application that can bypass traditional financial institutions and operate within the traditional messaging system The encrypted payment system, the product form of the first step, should be similar to the products of global popular unicorns such as South Korea's Kakao, Japan's Line and Russia's Telegram.

The Sun newspaper in the UK even had five different sources mentioning it:

This time, Facebook will issue a stable currency anchored to the legal currencies of several major countries in the world, creating a borderless payment financial empire. Utilize its huge user base to make up for the World Bank's insufficiency in private small capital flows.

Another Bloomberg News source said:

Facebook’s cryptocurrency is only pegged to the U.S. dollar, and it will be the first to enter the remittance market in India. And after gaining more experience in cross-border financial operations between the Indian market and the US market, it will be promoted globally.

WhatsApp already has 200 million users in India, which is a monopoly figure. If you add Messenger and Instagram, the other two products participating in the blockchain project, Facebook has at least 340 million deduplicated users in India .

India is also a region with high financial activity in the world. According to the World Bank, in 2017, Indians transferred more than 69 billion US dollars to their homes in India. The 2018 figure also rose by 7.9%.

India has 480 million Internet users, second only to China, and this number is expected to reach 737 million by 2022. This is obviously a huge market, and Facebook has every reason to try to find some opportunities to open up the Indian financial market through the already established communication tools and the key of digital currency.

A popular saying on Twitter is:

• Whether it is anchoring three currencies or only anchoring the US dollar, the above two options are actually in negotiations with local private banks, and the final adoption of the option depends on the specific negotiation results. However, Facebook has begun to test the issuance of "FBC: Facebook coin", and may have conducted a small-scale transaction test on the distributed e-commerce platform openbazaar.org.

• Solution 1: At present, Facebook has communicated with some exchanges to issue FacebookCoin. Currently 1:1 anchored to the US dollar. Operate as a subsidiary.

• The second option is to link with the US dollar, the euro, and the renminbi, formulate a "basket" plan, and reserve the above three currencies at the same time in the company's international account to which the stable currency is linked, and finally move towards the form of a fund.

The third option is completely different from the first two "collateralized stablecoins". It is a "mixture of credit currency and mortgage currency". The value is generated through "behavioral mining + user recharge". The currency is generated by the legal tender of the user's own country.

Correspondingly, the New York Times did report that:

Facebook has already talked to cryptocurrency exchanges to sell Facebook tokens to consumers.

However, the New York Times also emphasized:

If the value of the cryptocurrency is stable, it means that speculators (which are also the main audience of the current cryptocurrency) will not be interested in it. At the same time, this "stable currency" can also allow consumers to hold it with confidence and use it for fee payment transactions. There is no need to worry about the rise or fall in the value of cryptocurrencies.If Facebook launches cryptocurrency, it only needs to adapt to certain application scenarios to guide its 2.7 billion monthly active users,

He may become the currency with the highest circulation in the world in three months.

There are currently about 23 million different Bitcoin wallets in the global market, and about 33 million Ethereum wallets. Even if a user has registered multiple wallets, these user numbers are not even a fraction in front of Facebook's 2.7 billion active users. The industry generally believes that the entry of Facebook has brought the era of individual innovation of the blockchain to an early end. Entrepreneurs in the future must choose platform-based entrepreneurship.

Facebook issued currency, which has 2.7 billion monthly active users. FacebookCoin will become the most widely circulated Internet currency on this Odaily, and even the US dollar will be defeated by it. It will force the U.S. dollar to become the "special currency for country-to-country settlement", the real world is controlled by the U.S. dollar, and the virtual world is controlled by FacebookCoin.

Facebook has played with virtual currencies before, with features like Facebook Credits for in-app purchases in games like Farmville. Later, the attempt came to an abrupt end and was stopped by high-level officials. The industry is waiting for the day when it will return to the blockchain stage.

Now, here it comes. And what the New York Times cares about is how to control it......

Venezuela

JPMorgan

The three are attempts from different perspectives: a country, a bank, and a technology company have completely different identities.

JPMorgan Chase tried to apply blockchain from the top of the pyramid in the financial field and leverage digital currency from top to bottom;

Facebook is trying to start from the Internet field, use existing tools, products and resources from the inside out, and use blockchain and digital currency to explore new markets.