The Social Media Race For Decentralization
Facebook wants to develop its cryptocurrency. Twitter has been involved in digital coins activities for some time now. Why could it be a big step forward if crypto is spread across social media?
At the beginning of the year, Facebook acquired its first blockchain startup. It became obvious that the biggest social media platform wants to take a step towards the cryptocurrency and blockchain industry.
Two worlds combined into one
GlobalCoin, that is the name of the announced cryptocurrency. According to media reports, Facebook wants to roll out that coin in 2020. The social networking service will start trials by the end of this year. The whole program is called “Project Libra”.
What’s more, Financial Times claims that Facebook contacted representatives of the Coinbase and Gemini exchanges to prepare special platforms. Users of the coin would have a place for storing and exchanging it.
There hasn’t been revealed many details so far. However, with the most certainty, it will be a stablecoin. Facebook has already talked with payments companies such as Visa, MasterCard, and Western Union. It was disclosed a month ago that the social media company wants to raise $1 billion to fund the project.
Twitter – the crypto-friendly platform
From the very beginning, Twitter has been more eager to cooperate with cryptocurrency firms. Jack Dorsey, CEO of the platform, is a well-known supporter of the blockchain technology and crypto-related projects.
At the beginning of the year, Twitter launched Tippin.me, an app, to send bitcoin tips over Lightning Network for tweets. Thanks to the new version of the Chrome extension, it is easier to use now.
That, of course, isn’t the only blockchain-related development on Twitter. Dorsey has hinted many times that he wants to take advantage of the technology and use it to the fullest.
The central point. How important is it?
Karl E. Weick, an American organizational theorist, once said:
“The real trick in highly reliable systems is somehow to achieve simultaneous centralization and decentralization.”
That is probably the most crucial issue, the new technology has to deal with. How to find the balance between decentralized anonymity and independence with centralized efficiency? Social media companies try to answer that question.
Is it possible to launch a totally decentralized community platform? Blockchain models, at least in principle, can give more positive social outcomes. This is why the efforts of Facebook and Twitter are so important. They are running up against themselves. What I mean by that is the fact that with the decentralized technology, they are fighting against social media limitations of centralized modules.
Of course, they are not doing that from the kindness of their heart. At least, not entirely. There is a business behind it. People are aware of the flaws of centralization: data leaking, not enough independence, etc. So, it seems like decentralized systems are the future. If social media moguls don’t want to fall behind, they have to come up with ideas for decentralization.
Users are far closer to reaching the breaking point. So, social platforms have to hurry. The race is on. Whoever ends up with a better solution, will attract people. One thing is certain: decentralization will win.
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