Editor's Note: This article comes fromHoneycomb Finance NEWS(ID: fengchao-caijing), Author: Wu Xusheng, Editor: Hoho, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance NEWS
Honeycomb Finance NEWS
(ID: fengchao-caijing), Author: Wu Xusheng, Editor: Hoho, reproduced by Odaily with authorization.
Facebook has been thrust into the limelight after it was accused of leaking the data of 50 million users without their consent. How to use blockchain technology to free users' personal data from being controlled by centralized corporate entities has become a topic of discussion between the currency circle and the Internet giant.
When the news of Facebook’s secret internal team layout blockchain was exposed, at first, it was generally believed that Facebook would try to use blockchain technology to allow user data to be uploaded to the chain to protect user privacy.
However, with the outflow of multiple sources, Facebook’s intention to issue stablecoins to enter the payment market is becoming more and more obvious.
Recently, Laura McCracken, head of financial services and payment partners for the Nordic market, said that a white paper explaining the application of cryptocurrencies will be released on June 18.
Is it a gimmick or an innovation? Four days later, if Facebook can release its cryptocurrency white paper "on time", the Internet giant's blockchain layout will be clearer.
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FB targets stablecoins
After a number of overseas media reported the news that Facebook was about to issue coins, the discussion around this Internet giant became a topic of concern in the currency circle for a while.
Now that half a year has passed, the latest news revealed by Facebook shows that its part of the payment field is not limited to the US dollar.
Recently, Laura, head of Facebook's Nordic market financial services and payment partners, inadvertently revealed that the cryptocurrency issued by Facebook has been confirmed to be linked to multiple currencies, rather than a single US dollar, in order to effectively prevent price fluctuations.
In addition, she also said that the name of the stable currency is Libra, not the GlobalCoin previously reported by Bloomberg. "Facebook hopes to use Libra to implement payment functions on its products including Facebook, Messenger and WhatsApp."
However, the Facebook blockchain team then contacted TechCrunch, the first media, hoping to delete the news. At the same time, officials refused to comment on any information about the Libra project. Its company spokesperson claimed that if there is a problem with the partner, the release time may change, and their goal is to officially issue the cryptocurrency in 2020.
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TechCrunch reports that Facebook will release a white paper on the 18th of this month
Although Facebook did not give the exact release time of the white paper, it is certain that within the next year, the outside world will be able to see the digital currency issued by the Internet giant.
Credits didn't have much impact at the time, and Facebook stopped using them two years later.
Today, 10 years later, Facebook is targeting the payment field of the blockchain track, becoming another traditional giant in this field after JPMorgan Chase.
JPMorgan Chase's JPCoin is used for cross-border liquidation, and from the known information, Facebook's stable currency is more inclined to 2C scenarios, to achieve zero-fee transfers, "They are still working with a number of e-commerce giants and offline merchants to use It accepts payments in Facebook’s cryptocurrency and offers sign-up bonuses.”
According to The Information, Facebook also intends to deploy cryptocurrency ATMs so that users can directly exchange fiat currencies and traditional assets.
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Layout blockchain after data breach scandal
Looking back at the history of Facebook’s entry into the blockchain track, a departmental reorganization in May last year is considered to be the beginning of the company’s layout in the blockchain industry.
David Marcus, the person in charge of Messenger, took the lead in forming an internal team of less than 12 people. He was originally responsible for the chat client work on the Facebook site.
In 2008, David founded Zong, a mobile payment company. Three years later, Zong was acquired by overseas payment giant PayPal, and he then entered the core management of PayPal. In 2014, David joined Facebook to manage Messenger. In December 2017, in the wave of bitcoin prices soaring to historical highs, David joined the overseas wallet giant Coinbase and was also a member of the company's board of directors.
Since then, David chose to return to his old club Facebook. In the team led by him, there are technical experts including James, Vice President of Instagram Engineering, and Kevin, Vice President of Product.
Two months later, Facebook recruited again and set up a special blockchain research group, with senior engineer Evan Cheng appointed as technical director. Previously, Evan had paid attention to blockchain technology for a long time and served as a consultant in two blockchain projects, Zilliqa and Chainlink.
A series of actions prove that Facebook is actively embracing blockchain technology, followed by speculation from the outside world: How will Facebook, an Internet giant, realize the implementation of blockchain technology?
At the time, a sudden event was that Facebook was caught in a scandal of leaking user data.
In the first half of 2018, Facebook was accused of leaking 50 million user data without permission to Cambridge Analytica, a data analysis company that manipulated the U.S. general election; Accepting excess funding from the UK's official Brexit group, etc.
This incident plunged Facebook into an unprecedented crisis of trust. The founder Zuckerberg had to participate in the U.S. hearing because of this, and in front of 44 senators, he kept answering questions about how they would rectify to ensure the security of user data.
Zuckerberg at the hearing (pictures from the Internet)
As a result, Facebook’s stock plummeted. On the day it announced its second-quarter financial report, the company’s stock price fell by more than 20%, and its market value shrank by more than 120 billion U.S. dollars.
The scandals raged, the stock price languished, and some analysts even predicted the social giant's demise. They think Facebook is aging and losing its appeal to users.
Therefore, Facebook’s investment in blockchain development at that time was interpreted by the outside world as an attempt to solve users’ privacy and security, and even this move was directly labeled as “self-help”.
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Currency issuance scene refers directly to payment
As a giant that has been cultivating the Internet for many years, Facebook’s entry has allowed some investors in the currency circle to see the signal of the “regular army” entering the market; while the blockchain industry believes that following up the blockchain is not a bad thing for Facebook.
"Facebook can now effectively use this to integrate more reliable landing scenarios into the blockchain. Is there anything wrong with that?" Erin asked.
When the outside world interprets Facebook's blockchain action as an intention to change applications and ensure user data security, more and more news shows that Facebook seems to want to become a "central bank" in the cryptocurrency world.
As for the reason for the change, some insiders analyzed that Facebook has 2.7 billion social users with a huge amount of data, but currently there is no more suitable blockchain solution to complete the decentralized real-time transmission of these data.
Zuckerberg has stated in public that one of the ways to decentralize is to independently encrypt messages and deliveries. It is more difficult to empower social applications, "Maybe you can do this when you have enough resources."
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Zuckerberg emphasized: the future is private (pictures come from the Internet)
