Did you read that correctly? Yes, you did. Although the social media giant has in the past been staunchly opposed to cryptocurrencies and ICOs, they are not in the process of creating their own cryptocurrency.
Along with Twitter, Google, and a series of other online companies, Facebook has banned the advertisement of ICOs and cryptocurrencies on their platform. The ban was understandable, to an extent, given the many shady money-laundering schemes dressed up as ICOs. Whether the ban will remain in place after the launch of Facebook’s own cryptocurrency, however, remains to be seen.
From foe to fan
An article by Cheddar revealed the plans for rolling out a Facebook blockchain project. The project is still being kept under wraps, but the social media platform has allegedly been researching blockchain technology for a year now.
Up until now, the only person working on Facebook’s blockchain project has been Morgan Beller. Now, however, the vice president of Facebook Messenger has announced that he will be leading an entire team dedicated to integrating blockchain technology into the social media platform.
The vice president of Facebook Messenger, David Marcus, will be leaving the Messenger team to work on the blockchain project full-time. He will be joined by James Everingham, who is Instagram’s VP of Engineering, and Kevin Weil, who is Instagram’s VP of Product. Marcus will be replaced by Stan Chudnovsky, who is Facebook Messenger’s Head of Product.
David Marcus is no stranger to the cryptocurrency space, either. He recently joined the board of cryptocurrency exchange Coinbase.
The purpose remains a mystery
Although quite a few outlets have covered the blockchain plans, very few have been able to gather any concrete details about what the purpose is. Facebook is known for showcasing their ten-year roadmap at various corporate events, but the blockchain project has not been included.
What is known is that he blockchain-integration will not be limited to just one application. What is also known is that Facebook is not planning on creating an ICO (initial coin offering) for their blockchain project.
It has been reported that Facebook most likely will be using blockchain technology to verify the identity of people using their platform, as well as encrypt the data being uploaded to the platform.
Some are speculating on whether Facebook will be looking to acquire a cryptocurrency firm to assist them in their blockchain project. Given the vast number of talents and resources in the cryptocurrency space, it would not be a bad move on Facebook’s part.
Given that Facebook’s project will most likely not involve actual a currency, any potential acquisition will be related to the apps they are in the process of developing. Facebook has attempted to create a currency in the past, which failed.
Fans will have to wait
Although the headlines are generating a lot of buzz, fans of cryptocurrency and blockchain projects will, unfortunately, have to cool their heels. Although Facebook will be investing much more in their blockchain project, it will take years before we see the fruits of their labor. Until then, there will most likely be more information spilled by the organization.
What do you think Facebook’s blockchain project will be about? Leave your thoughts in the comments section below!