Facebook’s cryptocurrency project is gathering steam as the Social Media Giant is expected to make formal announcements on the project by the end of this month. The reports that have come to light recently reflect that Facebook has planned a global project that will aid payments (especially remittances) and even set up ATM units.
Validator Nodes: Decentralization and Accountability
The Blockchain Team of Facebook has taken careful consideration of the centralization rules and SEC’s security laws. Therefore, they are soliciting third-party organizations to act as “nodes” on the network. These nodes perform the same function that miners perform on Bitcoin or validators of the XRP chain. These are computer servers or hardware that solves cryptographic or encrypted codes that confirm each transaction.
The nodes have been incentivized to avoid malicious transactions; the cost of setting up nodes will be $10 million. Facebook plans to begin initially with 100 nodes, which will bring in a combined capital investment of $1 billion. The capital will be used to back the cryptocurrency with a variety of stable FIAT currencies and even include low-risk securities. The validators can expect a certain amount of return interest from the transaction fees.
Providing a Globally Stable Currency and Payment Network
Facebook’s cryptocurrency, GlobalCoin is aimed at shattering not only the market of Bitcoins but Central Banks and SWIFT network from all over the world. Facebook’s plans reflect the vision which Bitcoin began with a decade ago.
Reportedly, Facebook has also planned to set up ATM Kiosks and would enable official payments in its cryptocurrency. The payment on the internet would facilitate seamless transfer to money to almost everywhere, even developing nations with adverse economic conditions; the idea that made Bitcoin famous.
Nevertheless, the report also indicated that, while Mark Zuckerburg is confident about the payment infrastructure, the COO and CFO have been “skeptic” of the move.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com