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What Happens If Facebook Moves into Blockchain, And How Will This Play Out?
Since its inception, Facebook has done an excellent job of remaining on the cutting edge of technological development by investing significantly in emerging technologies and making strategic acquisitions. Through the acquisition of technology and people, the business has remained one step ahead of consumer trends, from WhatsApp to Oculus Rift. In addition, following the company’s internal official statement last week, it’d be making investments in an innovative blockchain survey wing, which would have been led by David Marcus, another of the business’s top executives who is also the head honcho of its Chat feature and a former Chairman of PayPal, it is pretty noticeable which relatively innovation the business has its high hopes on right now. And before we move ahead, register yourself on the link like bitcoin era, and learn all there is about the easiest ways to invest in cryptocurrency, so go on and sign up now.
Facebook’s current data security problem — which resulted in CEO Mark Zuckerberg being hauled in front of the United States Congress after the Cambridge Analytica incident — may be resolved thanks to blockchain technology and its incorruptible, decentralized digital ledger. On the other hand, because of the decentralized nature of blockchains, it would be impossible for Facebook to continue with its most lucrative business model: collecting user data and targeting individuals with advertisements based on their online activity and interactions.
What Exactly Is the Plan?
Three possible motivations exist, in my opinion, for Facebook to invest in developing its blockchain capabilities: The first and most apparent is that Facebook is attempting to publicly align itself with a technology that is most well-known for providing transparency and allowing users to take control of their data in the wake of the Cambridge Analytica scandal, and Facebook is attempting to do so in a public way. Many Facebook users are now questioning Facebook’s handling of user data and the platform’s openness and privacy policies, which blockchain technologies may relieve in the wake of the crisis.
In addition, Facebook wants to capitalize on the current trend of programmers flocking to the cryptocurrency sector to continue attracting developers to build applications on its developer platform. If Facebook can create a framework that allows app developers to raise and profit from their applications using tokens on the blockchain, the pace at which incentives are awarded would be significantly increased. Tokens provide developers with instant value at the moment of launch, rather than forcing them to wait years for their applications to mature before hitting the jackpot.
Due to recent controversies, the third point to mention is that Facebook is likely to be keeping an eye on several new blockchain-based social media sites, such as Steemit and YOYOW, to see how they are doing. Because they have fewer than 100,000 daily users, these rivals are not considered a danger at this point. It seems likely that Facebook is instead looking to the future and will create a new generation social network powered by the blockchain, which would give users more choice over how their data is used and the possibility of being paid for sharing their data.
What Is the Most Likely Way for Facebook to Use Blockchain Technology?
Protection And Management of Data
It is possible that blockchain technology, which allows for irreversible and transparent record-keeping, may help Facebook re-establish trust and confidence in the way users’ data is kept and used. Users would be able to see who has access to their data thanks to the blockchain, which would force Facebook to improve its ability to enable users to establish their data access limits and constraints and improve its data security. Users would be able to view precisely what personal data they have saved on Facebook, and they would be able to choose whether or not that data should be made accessible to the public or sold to marketers. This would also pave the way for individuals to monetize their own data via selling their own data on the Facebook network.
The Blockchain May Be Used to Verify the Identity of a Facebook User
The paper was informed by experts that Facebook could utilize blockchain technology to improve privacy for the billions of people who use its platform daily and that this would be beneficial to both users and advertisers. For example, blockchain technology may be used to verify a person’s identity and provide consumers more control over their data and financial transactions. According to the company, Facebook may establish contracts that specify who can get information from the network. “One of the things blockchain is excellent at doing is establishing trust in places where trust does not already exist,” Warren said in the study. “You configure the permissions in such a manner that, for example, for cat videos, you can take all of my data, but for music videos, you can just take my screen name, and it is automatically executed.” She also said that Facebook might utilize blockchain technology to generate a public key that would be used to match a user’s private information.
Facebook’s Blockchain Efforts Were Announced Earlier This Month
Earlier this month, Facebook said that it was forming a team to investigate how the blockchain technology that underpins bitcoin might be used to develop new applications. “I’m putting up a small group to investigate how to effectively utilize blockchain throughout Facebook, beginning from the ground up,” Marcus said on his personal Facebook page in response to his decision to leave Messenger. It is unclear how Facebook could utilize blockchain technology, given that it has prohibited advertisements linked to cryptocurrencies and initial coin offers (ICOs). After all, Facebook has shown itself to be excellent at destroying the competition, having acquired WhatsApp and Instagram, among others. The blockchain is not something that the business can buy, but it is something that the organization can create.