(BlockBar) According to reports, social media giant Facebook plans to hand over control of its forthcoming encrypted currency to external supporters and allow internal employees of the project to receive the encrypted currency as wages. The move is intended to encourage trust in digital payment systems and reassure financial regulators.
When Facebook’s encrypted currency project was reported in the New York Times and other media, a big concern came out. People questioned whether Facebook, as an almost monopolistic social network giant, had a “centralization” problem in its encrypted currency project, which is totally contrary to the basic thoughts of block chain. However, The Information said specifically in its report that Facebook plans to give control of encrypted currencies to external organizations to ensure that they are not completely centralized.
To achieve this goal, Facebook will invite third-party organizations as “nodes” to participate in the management of its encrypted currency. Encrypted currency nodes contain the computational power required to solve complex mathematical equations that are used to validate transactions. In addition, internal discussions are also under way to charge a third-party node $10 million as a threshold for participation to ensure that third-party nodes have basic capital and governance capabilities.
According to people familiar with the matter, in recent months, Facebook has invited dozens of financial institutions and other technology companies to join an independent foundation that will provide funds and help manage digital money. Facebook expects to introduce digital tokens later this month which aims to be used as borderless currencies. It even won’t charge any transaction fees and will actively market them in developing countries with large fluctuations in sovereign currency.
In addition, Facebook is planning to launch a real machine, whose function just like ATM in bank to ensure that users can use their encrypted currency in much more occasions and various ways, instead of only being online. This envisage is also in line with what Facebook CEO Mark Zuckerberg emphasized earlier this year at his developer conference: Payment is an important area of Facebook. And it may as well the only way to get the Facebook rid of the current free value-added and advertising business model.
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