Facebook’s Coin Will Repackage the Status Quo
Like the Godfather, Facebook wishes to make you an offer you can’t decline.
Spend Facebook coins on its site, and you’ll earn rewards in the form of more Facebook coins.
Unsatisfactory? Then how about this …
You’ll get more Facebook coins simply by viewing ads or communicating with other material on its site.
Here’s the kicker …
You don’t even have to be on Facebook to earn its coins. When you visit your preferred online retailer and go to the checkout counter, you can opt to pay in Facebook coins and earn much more coins.
If you like Facebook … if you trust Facebook … if you don’t truly mind the lack of privacy …
Then you’re most likely going to enjoy Facebook’s new cryptocurrency and all it needs to use.
However just understand this: This is not a service It’s a bribe
Facebook’s brand-new coin will resolve none of its significant flaws. It’s still in charge. It still gathers a lots of information on you. It still bombards you with advertisements. And there’s absolutely nothing you can do about it.
And in return?
Facebook is providing you a small sliver of its action. Congrats.
I don’t understand the exact size of this sliver. Facebook is keeping a lot of the details to itself. It will be in the form of a commitment benefits system. But if it follows typical product commitment systems, I guarantee it’ll be a fractional amount.
Facebook’s strategies– which were shrouded in secrecy up until a few days ago– have currently been called “innovative” by CNN.
That’s barely the case. The only hazard Facebook’s coin poses is to other stablecoins and global charge card business. It’s not a hazard to decentralized cryptocurrencies.
Because of Facebook’s sheer size– 2 billion users and growing– practically anything it does is potentially needle-moving. But needle-moving and advanced are not the very same thing.
Facebook Coin vs. Basic Attention Token
To show simply how unremarkable Facebook’s coin will be, let’s compare it with a coin that’s already running with an explicitly disruptive and innovative mission: Brave’s standard attention token (BAT).
The Brave group believes Facebook and other social networks and search sites belong to a significantly problematic and corrupt digital industry, where trackers are encouraged and an absence of personal privacy is tolerated.
So the Brave web browser immediately blocks trackers and advertisements that find out about users without their understanding. Brave monitors user activity (while preserving their privacy) and rewards users with BATs. The internet browser has likewise been checking a minimal ad alternative where users can earn BATs through seeing advertisements.
Here are a few of the essential differences in between Facebook’s coin and Brave’s BAT …
Central vs. Decentralized. This is the biggest distinction. Facebook will play simply as big a function with its digital coin rewards system as it makes with any of its other items. Its blockchain-based coin technology may be faster and more effective than traditional payments, however it would still be centralized.
Brave’s BAT is a public, open-source token using the Ethereum blockchain. And it’s generally decentralized.
Privacy Optionality. Facebook’s new cryptocurrency pays quicker and easier, however it doesn’t assault Facebook’s severe privacy problem. Facebook is considering utilizing its coin to reward users who click advertisements. That could cause better advertisement targeting, but it does not eliminate ads. Brave, on the other hand, gives users the choice of no advertisements or limited advertisements (paired with generous benefits).
Circulation of Rewards. As I stated, the Facebook coin rewards are likely a small fraction of Facebook’s advertisement revenue. But Brave users who decide to get advertisements will get 70% of the earnings generated by the ads they see (in the form of BATs). Users, in turn, use their BATs to reward content creators. Brave prepares to eventually let users exchange BATs for rewards like hotel spaces and dining establishment coupons.
Data Collection. If you don’t know this, you probably should. Facebook collects every message and file you have actually ever sent out or received, and all the contacts in your phone. Earlier this year, The Wall Street Journal found that Facebook was gathering information from smart device users’ other apps without their approval.
Brave keeps track of how users spend their time on its internet browser in such a way that the users’ personal information never ever leaves their gadgets, guaranteeing privacy.
At the end of the day, I can’t see anything advanced about Facebook’s centralized digital currency system. If effective, it would just strengthen the status quo, namely Facebook’s dominant position in the social media area. It’s not a danger to either bitcoin or Brave’s BAT, which are true decentralized cryptocurrencies with plainly disruptive missions.
Invest early and well,
Co-Founder, Early Investing