No one seems to be surprised with the constant presence of social media in out lives. In many cases they are becoming the tool for our work, not just source of entertainment. Moreover, I think this will be growing even bigger in the nearest future.
How is that connected with Blockchain? I’ve already mentioned it several times on my blog but this time I’ll give you some more details about it.
Recent studies, published by the British company Juniper Research show that the use of Blockchain technology by the biggest buisnesses all over the world is only a matter of time. About 60% of those companies admit that they serioulsy consider applying this technology.
But can Blockchain really improve benefits and services of global giants like Google, Facebook and Uber and why hasn’t this integration happened yet.
CBInsights claims that Google takes second position in the top corporate investors in blockchain businesses. How is that so? First of all, Google looks forward to get profit from its equity investment in blockchain startups and sees the perspectives of this industry. Another reason might be the fact that Google tries to integrate Blockchain in order to make the corporate processes more efficient.
Nevertheless, we often hear that the internet marketing is becoming less effective because entrepreneurs spend a lot of money on advertising and it costs even 6$ to get one new user. Google and Facebook are magnats with total share of 72% – which explains why they might not be interested in changing the conditions. What is more, before implementing their own Blockchain, the Internet giant should have a particular problem which cannot be solved without using this technology. Therefore, using Blockchain to secure personal data of the users does not seem probable at this time.
On May 11th it has finnaly been announced that Facebook is going to create its own cryptocurrency. It looks like the company is preparing for implement Blockchain and that ignoring new technologies will inevitably result in losing power in the future. But the limited efficiency of Facebook (in comparison to Bitcoin network) may be problematic while making FB a global Blockchain platform. Transporting personal data into the network may also be a trap, taking into consideration the recent data leak scandal which cost the company about 100 billions USD. There are examples of fully decentralized social media (Telegram) which show the way Blockchain may be used for a common Internet user. They do not intervene in user’s actions, they do not have access to private messages and do not ban to express your own opinions. But can it do damage? For sure. Full decentralization with no moderation may cause that users will start posting offensive and forbidden content or personal data.
And do companies like Uber need Blockchain? These are real information centres used for connecting providers with people who need their services. At the same time users do not have to be aware of the fact that there is more than one link in the chain, each of which affects the speed, quality and cost of the service provided. There are all signs of dencentralization, the entire infrastructure, inclufing servers and software controlled by the platform.
Owing a company which has full control of everything that takes place in its system enables it to abuse power. Right now, with current business politics Uber is a company that cannot perform without centralized authorities.
Programmists may revolutionize the way of data storage and swap. But will they be able to solve the problem of capacity regarding millions of passengers?
Has the time come?
Decentralization could help big corporations to automate and optimize their business processes in logistics, security or data storage. Still, gigants like Google, Facebook or Uber will need time to scale what Blockchain startups already have. On the other hand, in the nearest future, small companies will not be able to implement innovative solutions; monopolists of the internet market could become monopolists in the blockchain environment.