A new form of Social Media on the Internet with FBcoin
Bitcoin went through a bear market through 2018 and early 2019, which piqued the interest of various individuals and social media giants like Facebook. This saw Facebook quietly entering the cryptocurrency and blockchain space with Fbcoin.
The unofficial name ‘FBCoin’ according to the company will be a crypto asset, designed for its social media platform and they intend on bringing this technology to billions of users.
More and more technology companies have began recognizing the power and potential of this technology to innovate beyond current financial and economic systems. The decentralised nature of cryptocurrencies like bitcoin has become important to fintech over the years and may pose a threat to FBCoin or become a strong competitor.
What is currently known about FBCoin
According to reports, FBCoin will be focused on appealing to users of Whatsapp in India as a way to make digital payments. The Coin is set to be developed on the DLT with some Stablecoin features and will be backed by assets external to the crypto industry.
It is still unknown whether the Coin will be interchangeable with cryptocurrencies like Bitcoin, Monero and Ethereum as this will require the coin to be built on the Blockchain technology.
However, Mark Zuckerberg has mentioned Distributed Ledger Technology in a number of interviews and both these names are now used interchangeably.
Many analysts think that regardless of a blockchain-based FBCoin, that the coin could garner a huge amount of traction in a few years and it still remains to be seen how successful a centralised company like Facebook will become with its own cryptocurrency. As this will essentially make it start acting like a “Bank”. It could also garner billions in the process with this novice implementation of its own cryptocurrency to the masses.
The question surrounding the decentralised nature of the FBCoin status has left some cryptocurrency enthusiasts double minded about the coin.
According to Phil Chen, the decentralised officer at HTC, the FBcoin and JPM coin will act more like the intranet of money while bitcoin and Ethereum will be more geard towards an open permission-less internet of money system and foster greater innovation through freedom of use.
The interoperability with FBCoin and other cryptocurrencies will be critical to its longterm success. If Facebook is looking to introduce a payment ecosystem, it is most likely going to be similar to Paypal or Venmo. Which will be great for Silicon Valley firms, but not for decentralised cryptocurrencies like bitcoin.
Hard at work with the Distributed Ledger Technology
Most people are still very sceptical what Facebook intends with this coin approaching slowly. The Blockchain team behind the development of this Facebook coin has been working hard on bringing this project to fruition.
The company is actively in discussions with cryptocurrency exchanges, as the arrival of this coin can be expected soon on Whatsapp.
According to Max Kordek, who is the head of the Lisk project. FBCoin is a cool thing and he is confident in the decisions of Facebook. The launch of the FBCoin, whether centralised or not, will be a good benefit for the technology and the industry as a whole.
In this era, centralised digital assets are quickly becoming uninteresting to crypto users and the economy at large. As these traditional ways of asset creation and asset exchange lack the power of being censorship resistant, immutable, secure and peer-to-peer.
However, centralised cryptocurrencies will bring a new found wave to the industry creating a global interest in bitcoin and other crypto’s. There are more than 30 million new consumers expected to find their way into bitcoin with the launch of the FBCoin. Which will more than double the decentralised community in size, bolstering global adoption and increasing the network effects and value of bitcoin.