Facebook and Blockchain: Potential Rival for Bitcoin
- Written by TechXO Team
- Category: BlockChain
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Facebook has been reported to be looking for 22 new individuals to join their team. Specifically, Facebook is looking for individuals that possess skills and knowledge regarding Blockchain and an understanding of the cryptocurrency ecosystem. This is not the first time that corporations have looked for individuals with knowledge of Blockchain since it has become a part of how they do business with other corporations. This may just be Facebook wanting to integrate Blockchain in the way they deal business with other corporations, but it may also be the sign of the dawn of Facebook’s own cryptocurrency, the Facebook Coin.
What is Blockchain?
Blockchain is a vital part of cryptocurrency since it allows for an unhackable yet transparent system to exist behind cryptocurrency transactions. It works by only allowing users to attach a group of data called a ‘Block” to the end of a line of already existing data. This line of data is the “Chain”, which exists on the server of every user. There is no way to alter existing blocks of data within the chain since that would require you to alter every existing instance of that block of data as well. If you only alter one block, every other block will be affected. The transaction will be deemed inconsistent, ultimately not allowing you to add another transaction. Originally used by Bitcoin, Blockchain can now be seen behind most forms of cryptocurrency that exist on the market. There has been a huge demand for individuals with Blockchain experience, especially with financial corporations like Visa.
Facebook investing in individuals who are knowledgeable about Blockchain and cryptocurrency could mean big things for the social media giant. Primarily, it could mean that Facebook is ready to add a feature that could potentially change the way users actually use the application. By creating its own cryptocurrency, Facebook can grant individuals who cannot afford other forms of cryptocurrency access to that market. Facebook could even create a simpler version of cryptocurrency, one that is simpler, easier, and more affordable to use than existing competitors on the market. Given that there is no concrete release of how the Facebook Coin will work, the options for Facebook to take are endless.
The Facebook revolution
Given the number of users of Facebook, the corporation creating its own cryptocurrency could change the entire landscape of finance. Not only will it be available to every Facebook user on the planet, but it could also create a cryptocurrency that a person doesn’t have to mine for. The Facebook Coin even has the potential to replace the US Dollar and other forms of currency, making it the first true global currency that people all over the world has access to.
However, as with everything, concerns surrounding the Facebook Coin itself have been raised. The Bitcoin, although a great innovation, has been known to be used in the deep web and on the black market, as it cannot be traced to the individual who owned it but rather to the account as to where it came from. This makes it easier for individuals with malicious intentions to create a fake account, buy Bitcoin, and use it for whatever purpose he chooses. Given this possibility for abuse, how does Facebook plan to monitor the way the Facebook Coin is being used? Is Facebook, or even Bitcoin, liable for the way their cryptocurrency is being used?
Without further developments and press conferences, information regarding the Facebook Coin is still vague. The greatest edge Facebook has over everybody else is the fact that more than 1/4th of our population actively use the application. However, if Facebook wants to be a part of the cryptocurrency industry, it needs to make sure that it stands out among its predecessors.