The Secret Behind Facebook Management and Blockchain Division Launch

Ivan Schwartz
May 12, 2018

Facebook Inc Chief Executive Mark Zuckerberg on Tuesday ordered one of the biggest management shakeups in the history of the social network, giving more responsibility to his chief product officer and launching a blockchain division.

"So I think it's a technology that fits very well with some of the business model challenges that they're actually facing, and I think they're very right to take this very seriously", van Kralingen said.

As CCN reported, Facebook announced last week that it had created a new team dedicated to researching blockchain technology. Companies often shuffle executives to work on different products to bring a fresher perspective and to help the teams more easily identify problem areas. Will the company give users an official method of mining for it?

That Facebook would form a team specifically dealing with blockchain is especially intriguing, and a clue the company is indeed interested in developing some form of cryptocurrency. The company moved the leader of its Messenger service, David Marcus, to the new blockchain unit that he will oversee.

It's worth noting that blockchain, as a decentralized system, could turn out to be very useful for Facebook.

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Evidently, Marcus has plenty of experience in the field of payment processing - he was also an early adopter of Bitcoin, and in December he joined the board of Coinbase.

We'll keep our ear to the ground for further developments on Facebook's cryptocurrency plans, but it could be some time before these come to fruition.

"Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology". People familiar with the matter said the social network doesn't have plans to hold a so-called initial coin offering (ICO) by offering a limited number of virtual tokens for the public to buy at a set price.

Facebook would not be the only social media platform to launch its own cryptocurrency. But the feature never gained traction, and Facebook shut it down two years later.

"So, the various communities running the different blockchains and the different assets need to fix all the issues, and then when we get there someday, maybe we'll do something", Marcus added.

Other reports by GizPress

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