The market has been speculating about Facebook’s blockchain strategy in recent weeks. Indeed, Barclays’ internet analyst reported that there could be as much as a $19 billion revenue opportunity from Facebook Coin by 2021.
The report considered Facebook’s original payment ambitions from nearly a decade ago called “Facebook Credits,” which are like cryptocurrencies.
This news does not surprise us.
In July 2018, we published a report exploring the rationale of a blockchain-based business model for Amazon, which we dubbed AmazonCoin. Like Facebook, Amazon has had their own virtual currency in place for some time: amazoncoins, which offer customers discounts on apps, games, and in-app items.
The breadth or products sold on Amazon and the number of active customers lend themselves to a native digital wallet, a stablecoin offering, and the potential of the coin to become a unit of account for theoretically all the products and services sold on its platform.
Every single private and public tech company of size must be thinking through how they integrate tokenization into their offering and/or capital structure.
This will take time to flourish, but when it does it will catalyse the digital asset security thesis, which is growing with every day.
A Privacy-Focused Future
The other driver for incumbent technology companies is the shift to private, encrypted communication.
This was the topic of Mark Zuckerberg’s blog post this week. The post is well worth a read because it demonstrates shift in business approach and culture — for those that are familiar with my prior writings, this is just another example of Peak Web 2.0.
If privacy-first becomes a cornerstone of incumbent technology companies’ business, then they will need to find new strategies for making money.
Get ready for Enterprise Tokens.