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Crypto News Facebook Social media

Doubts Raised Over Facebook’s $50 Million Investment in Building a ‘Responsible Metaverse’

In what’s widely viewed as a “never mind that mess, look over here” move, troubled social media giant Facebook is to spend US$50 million over the next two years on metaverse-related initiatives and partnerships.

Advocates of the metaverse, a system of shared online spaces used for social interactions, games and more, believe it will also help change the nature of work and offer new digital economic opportunities to users around the world.

But as decentralised projects try to create future online experiences free from oversight and control, it’s exactly the pervasive influence of centralised entities like Facebook they seek to avoid.

FB Attempts to Create a Diversion

In an attempt to diffuse criticism of its track record on user privacy and cultivating misinformation, Facebook vows it will build metaverse products “responsibly”. Australian journalist and digital consultant Abhishek Baxi summed up the reaction of many in the crypto community with this tweet:

We’ll work with experts in government, industry and academia to think through issues and opportunities in the metaverse. For instance, its success depends on building robust interoperability across services, so different companies’ experiences can work together. We also need to involve the human rights and civil rights communities from the start to ensure these technologies are built in a way that’s inclusive and empowering.

Facebook post, September 27

Facebook’s initial partners in the metaverse initiative include the Organisation of American States, Women in Immersive Tech, and African organisations Electric South, Africa No Filter and Imisi3D. It says it will also consult with researchers at Seoul National University, the University of Hong Kong, and the National University of Singapore on these efforts.

No Single Entity Can Rule the Metaverse

Facebook stresses it doesn’t intend to singlehandedly create or oversee the eventual metaverse. “The metaverse isn’t a single product one company can build alone,” tweeted Nick Clegg, Facebook’s Global Affairs VP. “Just like the internet, the metaverse exists whether Facebook is there or not. And it won’t be built overnight. Many of these products will only be fully realised in the next 10-15 years.”

Both Clegg and colleague Andrew Bosworth, Facebook Reality Labs VP and co-author of the company’s metaverse post, drew Twitter fire from digital media veteran Jason Kint:

Clegg and Sheryl Sandberg, Facebook’s operations chief, have effectively replaced Mark Zuckerberg as the company’s frontline promoters. In turn, last week Zuckerberg replaced his chief technology officer with Bosworth, a close friend and the company’s longtime head of hardware, in a move that underscores Facebook’s intended transition from troubled social media purveyor to futuristic tech provider.

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Facebook NFTs Social media

Facebook Exploring NFTs as Part of ‘Ready’ Digital Wallet

Facebook is considering allowing the company’s Novi digital wallet to support NFTs, according to David Marcus, the social media giant’s head of financial services. 

In a recent interview with Bloomberg, Marcus said Facebook is in a “good position” to enter the NFT market and allow users with related features to store their work. This would make the Novi wallet a multifunctional system besides just storing Diem, Facebook’s delayed token formerly known as Libra.

We’re definitely thinking about this. It’s really an area that is worth exploring, and one where we can have a positive impact for both creators and consumers.

David Marcus, head of financial services, Facebook

Novi Would Facilitate Cross-Border Payments

Facebook hopes Novi (which will go live as soon as Diem goes live) will make cross-border payments more efficient and reduce transaction costs.

Novi is Facebook’s blockchain-based wallet to support Diem transactions. Libra, Diem’s predecessor, was a coin meant to be backed by a mixed set of currencies and government debt, yet after several regulatory hurdles it was left as another stablecoin pegged to the US Dollar.

Speaking of regulatory uncertainty, the Reserve Bank of Australia, which has been dragging its feet regarding the study and launch of its own CBDC, remains unsure if the Diem will gain regulatory approval and be allowed to operate in Australia.

Facebook still suffers from the mistrust people have felt over the years regarding personal data security and privacy, thus their negative response to the company’s involvement in finance. Marcus has referred to this opposition as “un-American”, adding: “I don’t think we deserve people’s trust, I think we deserve a shot at earning people’s trust.”

Western Countries Are Losing the Race

Marcus notes that Western countries such as the US are lagging in technological and financial innovation compared to countries like China. “We are really falling behind at an alarming rate,” he says.

Four months ago, Facebook announced it was working on Pontem, an experimental network for Diem that will allow users to build decentralised applications (dApps), DeFi strategies, and other tools before Diem goes live.

Categories
Crypto News DeFi Facebook

Facebook Is Making an Ecosystem For Creators On Polkadot Blockchain

Pontem Network will be the “Kusama” of Facebook’s Diem where users will be able to build their own Defi Strategies, Dapps, and other tools before launching them on Diem.

Diem is Facebook’s multi-billion-dollar growth strategy that focuses on creating a financial institution for the unbanked. Diem will be accessible to anyone with WhatsApp or Instagram and supports smart contracts and advanced features. Additionally,  Diem intends to launch a backed stable coin as its first use case.

Connecting The Regulated And The Unregulated

Pontem is a bridge between the regulated and unregulated worlds that will allow exchanging value between the two. Pontem Network has been approved for two grants, one from Web3 Foundation and one from Wings Foundation. The main goal of Pontem Network is to bring the Move Virtual Machine, Move Language, and the ecosystem surrounding it (Facebook’s Diem as known as ex-Libra) to Polkadot. Nearly 2 billion Facebook Diem users will be able to access decentralised tools and create new blockchain projects.

According to Pontem, Diem has some limitations & restrictions which they aim to solve by connecting Diem to the decentralised world. The network will help Diem users get access to all the use-cases provided by the unregulated society, such as financial instruments, DeFi and NFT, and even games.

Pontem aims to be an attractive choice for creators giving them the freedom to build in any direction on the ecosystem.

Pontem’s DeFi Usecases

As an example, Pontem Blocks can act as blocks of pre-set values used to build and create DeFi tools. Users will be able to mix them in various combinations to reach the outcome they are looking for. And the other part is that such development will be fast and effortless, with no need to write code, since users will be able to use ready-made modules and tools to build their ideas. The platform allows for easy migration to Diem

 It allows users to create their own strategies, unite all operations into one transaction, and give external developers a chance to monetize their own developed blocks.

Pontem Network

Pontem network supplies users with complete toolsets to develop Dapp projects, including a package manager that allows communication with other blockchains.

users will have a chance to take multiple actions such as swapping tokens, providing liquidity, or staking LP tokens* all in one place.

Pontem Network

Integration with existing liquidity protocols, including Ethereum ones (using different Polkadot bridges) will expand the uses for DeFi. And since Diem has so many users the ecosystem could become very popular due to it being a “financial framework straight out of the box”.

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Crypto News Facebook

Crypto News Australia Facebook Page Banned

As you may know already, Facebook made a decision on 18 February, 2021 to ban Australian news sites from publishing on Facebook effective immediately. Crypto News was no exception.

Update 26/02/2021: Our Facebook page is now back online.

The crypto news Facebook page may stilll be visible to you, but our publishing functions are disabled, and they have removed our cover image.

Facebook page missing Posts link and cover image

Why was it banned?

As quoted in the Sydney Morning Herald: “to even the playing field amid the market monopoly of Google and Facebook and to protect public interest journalism”. “Media companies say their content helps Google and Facebook make money by offering the reliable, fact-checked information users are looking for. The tech giants say the internet should stay free and that publishers benefit from the click-throughs from their sites. And, with the rest of the world watching Australia’s code closely, both companies fear it could trigger copycat regulation forcing them to pay for news all around the globe.”

What does this mean for you?

Not much really. Just follow us on our Twitter page or Telegram channel to get the latest crypto news stories. Hopefully Twitter doesn’t apply this ban too – that would be mayhem. This highlights the control that these huge centralised companies have on our society and may lead to decentralised social platforms becoming more popular over the coming years.