Privacy has remained one of the major concerns for Facebook. Due to platform’s centralized nature, it is prone to data leakages and hacks because once the security is breached, the data stored at one location can be accessed easily.
Social media giant Facebook is cooking up with blockchain and it recently opened another job linked to blockchain. The platform is looking to hire a lead commercial counsel for the initiatives related to blockchain to be handled appropriately. BlockPublisher reported earlier that Facebook is already pitching it’s stablecoin to crypto exchanges but what does this blockchain hiring signify for Facebook and the crypto world? Is the platform looking to launch a coin anytime soon? What are the ways in which blockchain can help improve the platform? Let’s have a look.
The platform has also been accused of selling user data to third-parties, Cambridge Analytica data leak scandal being one of them. The firm was accused of scrapping personal data of millions of users on the platform and using it for political purposes. Blockchain changes this by making a centralized system decentralized. The CEO of Facebook, Mark Zuckerberg, is already looking into using blockchain for Facebook Connect, a single sign-in service offered by the platform through which users get access to various third-party apps. This data handover by Facebook to apps is exactly what makes the personal information of its users vulnerable. Zuckerberg stated:
A use of blockchain that I am potentially interested in, although I haven’t figured out a way to make this work out, is around authentication and granting access of your information to different services, basically replacing the notion of what we have with Facebook connect with something that’s distributed.
To start off, blockchain can help the platform handle its privacy issues.
Secondly, it was recently reported that Facebook is trying to launch a crypto coin for its subsidiary WhatsApp. Unlike traditional cryptos, the coin being launched by Facebook is a stablecoin, meaning it is going to have a peg with the U.S. dollar 1 by 1 so that the volatility issue of cryptos is handled. This move is expected to help drive the mass adoption of cryptos because the general public will get exposed to the prospects offered by them. The entire remittance system of the world will be changed if a product as highly utilized as WhatsApp incorporates a financial aspect through blockchain. This is another way how blockchain can help make the usage of the brand WhatsApp more widespread.
Thirdly, if Zuckerburg decides to use blockchain for its main platform Facebook, Brave is one of the best examples of how a new economy can be set up for the content-creators on the platform. Facebook right now is a highly ad-driven platform. Its basic revenue comes from ad campaigns, but this is again where it loses a fair share of the money. Middleman ad exchanges between publishers and advertisers take up a huge cut. If these middlemen exchanges are eliminated using blockchain, more revenue will be generated by the publishers and less expenditure will be borne by advertisers.
Brave’s blockchain based ecosystem puts users, publishers and advertisers on its ad-blocking directly in touch with each other with Basic Attention Token (BAT), as the representative of value. Users can help fund their favorite publishers through BAT whereas advertisers can directly get in touch with publishers without the need for exchanges. In this way, Facebook, which is a platform of more than 1.6 billion people, can be made more profitable for content-creators overall. This will also help Facebook challenge the video streaming giant YouTube because content-creators are likely to opt for a more profitable platform.
The blockchain drive is slowly starting to grow big. Blockchains also offer trust, transparency, immutability and anonymity, all attributes which can lend great benefits to social media platforms. The technology is revolutionary. It’s only a matter of time before we see it getting incorporated into various products we see around us today. Being one of the biggest platforms of the modern day, Facebook is getting a lead on others by diving first into the blockchain world.