Facebook, the world’s largest social media website and one of the biggest companies, is reported to move forward with its cryptocurrency project. Reports have it that the initiative will be announced as soon as this month. Further details reveal that those who wish to become validator nodes will have to pay $10M for this.
Facebook Launching ‘GlobalCoin’ in June
Facebook’s cryptocurrency called GlobalCoin is reported to be announced this month. Citing a report from The Information, CNBC outlines that the social media website intends to enable its users to store, trade, and exchange the new cryptocurrency through the company’s applications which include WhatsApp and Messenger. Given that Facebook’s user base is over 2 billion, one can easily see a serious potential market out there.
Additionally, the report also says that Facebook will allow its employees to take their salaries in the new cryptocurrency. It will also install ATM-like machines which will enable them to buy it.
It’s questionable, though, what the purpose of this will be since Facebook’s cryptocurrency is going to be a stable coin pegged to the US dollar. At a glimpse, it doesn’t make much sense for employees to prefer one over the other.
$10M For a Validator Node?
What seems like the most interesting bit of information in CNBC’s report is the fact that Facebook will reach out to third-party organizations for them to act as validator nodes. What’s even more intriguing is the fact that Facebook will reportedly charge a whopping $10 million for this.
Now, it’s important to understand that nodes do the work on the network in order to profit. Depending on the network itself, they can profit from network fees by validating transactions or from block rewards from adding new blocks on the network. At this time, it’s unclear exactly how Facebook’s new cryptocurrency network will function so it’s hard to say whether or not the incentive of running a node will be worth it. This is especially given the fact that one would have to pay $10 million for the privilege.
Of course, as it’s always the case, speculation starts circling around, with some suggesting that Facebook is going to provide user data to its nodes as an incentive.
In any case, it remains interesting to see how the cryptocurrency will perform and whether or not it will live up to the hype that’s being built around it.