Facebooks new blockchain division
Facebook is currently looking for and hiring crypto experts. This is supposed to expand the in-house crypto and blockchain department. There are also rumors that the social media giant wants to issue its own cryptocurrency.
The company launched its own blockchain division already in April 2018. Chief of the division is David Marcus, the former president of PayPal. The blockchain department of Facebook now has approximately 40 employees. Of these, about half a dozen come from PayPal and were hired by Marcus from there.
And it looks like, that Facebook wants to provide their own payment system, as a first step within their WhatsApp-Messenger.
Facebooks declining user counts
As of today the problem is, that the company is generating profit by selling the data of the users. But conversely it shatters consumer confidence. In Europe, Facebook loses three million users per day. In addition Facebook lacks alternative revenue models for the advertising business. And furthermore it takes its revenge that the group was never able to gain a foothold in the e-commerce sector.
Blockchain could solve many of Facebooks problems
In fact, Facebook could use the blockchain to solve many of its problems in one fell swoop. The blockchain could be use so that data are used only to the extent what the user allows. And this could also be a way to regain the trust of its users.
“Login with Facebook” – It feels like every website or app does offer this option. Hence a Facebook Coin would work nearly on all websites and in all countries where the customer can log in with Facebook. Hence this would allow two billion Facebook users to make electronic payments without the need for a traditional bank.
In case that Facebook as the largest social network really implement their own blockchain payment system, this would mean for the company, that it would become one of the big players in the e-commerce sector over night. And if they are able to provide further blockchain products, with all their benefits and advantages to billions of customers, the company would not only solve its data problems, as already said.
So last but not least, the blockchain could intensify advertising via so-called smart contracts. All this already exists, but only for itself and on a broad basis. But for the moment we need to wait and see what the future holds.