Facebook is preparing to launch their cryptocurrency. According to the view of experts and media they already responded with a great fanfare. The facebook coin is to take the place where bitcoin is failure indeed. But three mistakes are done by them and these three mistakes are:
1) they see bitcoin as a low graded:
Bitcoin is originated to send data securely without the interference of third party indeed. That’s why it provides an open ledger. This open public ledger shared by countless users and fulfilled its trust entirely. Whoever is sending or receiving money here miners are not aware of this indeed. Here the network has never been hacked. Not a single data is leaked by open blockchain technology. Here all data are encrypted and the data stored here stays forever. Through the medium you can send fund to anyone you want. Though there is no hand of any intermediary or third party so it’s a trustless system to the users. But all these made bitcoin adoption stronger enough compared to others and here transaction fees are affordable.
2) They Think Facebook is Suitable with Blockchain:
In case of facebook all data is owned, controlled and monetized by the company and it’s working model is on collecting vast amount of personal data from users and selling it to the highest bidder. Through there is risk of privacy data abuse their model is not changing. To do this facebook has only one way and this is to make a digital asset backed with U.S. dollars stashed in its bank account. In this case all digital assets will be put on a computer network which is under controlled. Hopefully it won’t be different from Visa and PayPal’s.
3) Their Though is That Facebook Can’t Use Blockchain Technology:
According to the thinking Facebook will use blockchain technology to create tamper-proofs record. This technology will make the media secure. But cryptocurrency is not secure for blockchain technology but it is secure for its decentralization and having no authority of third party. When you remove that innovation from its local framework and transplant it to a centrally controlled association like Facebook, the security and protection benefits are to a great extent out the window.