Centralized Facebook is Pouring Money into Blockchain Division
There aren’t many tech companies more centralized than Facebook. This is because one man owns and controls it and can’t be fired.
According to Blockchain influencer Justin Wu, Facebook is still on the move for Blockchain, in fact they are ramping it up.
He believes it may be for a Blockchain-payments type system. They are building heavyweight team from former Paypal and looking to acquire talent from other blockchain projects to absorb into their projects.
Crypto winter to crypto hijack
Talent grab during the down market to build. Seems like the giant companies can continually invest in talent and experimentation whereas existing Blockchain companies will die due to lack of progress, adoption and runway.
Perhaps out evolving existing Blockchain companies due to reach, branding, users/adoption, and super talent from within blockchain and with outside experience. It’ll be interesting. They are hiring Fintech/Paypal execs, Security, and Identity specialists. It’s possible that FB could tap into new business opportunities via Identity (they kinda own it all), Payments / POS, Steemit and more.
It’s hard to believe the data used for this isn’t going to go against what decentralization was all about. Facebook’s business model is deeply flawed against consumers while exploiting even their private messages. There’s a fairly good reason why Instagram and WhatsApp founders left Facebook and crimes against users’ privacy is pretty high on the list.
However with crypto halfway in the ground due to Bitcoin’s weak volatility of late, Tech thinks it can hijack the blockchain. AWS, IBM and Alibaba have already done a fair job. Facebook’s last hurrah could be a blockchain move.
Facebook formed a blockchain group eight months ago in a major staff shakeup and has been quietly recruiting additional engineers, product managers, legal experts and academics with experience in payments and cryptocurrency. Facebook can stockpile talent, but rarely have shown they know how to actually innovate or enter a new space. Their business model is advertising to a fault.
However, having their own digital asset could help retain younger users on Instagram and WhatsApp. The future of Facebook’s flagship app and Messenger are likely not in great shape for Western users that have the highest ARPUs.
Facebook could be the “Decentralization” killer
With Google and Microsoft so clueless about blockchain, companies like Amazon and Facebook can really differentiate against them here. Facebook’s reputation might be shot, but theoretically they still have the users.
A Facebook altcoin of some kind could, in fact, lead to the destruction of things like Bitcoin and Ethereum as the public blockchain is hijacked by people with deeper pockets and more daily active users — the team of one, Zuck-ville, where we are “all connected” globally.
David Marcus is a big name in Fintech. He was the president at PayPal before he took up his post at Facebook. I don’t think we can expect Sheryl Sandberg to help these guys “do the right thing” as history has shown. It could mean a centralized company like Facebook killing the decentralization movement.
If Facebook manages to create the first blockchain “killer app” what happens to actual public blockchains that value decentralization, the exact opposite of what Facebook has become?