Meta, Block to springboard off crypto
Things are certainly evolving in the Blockchain space and how! While Facebook re-christened itself as Meta, Twitter’s former CEO, Jack Dorsey was not far behind. He turned ‘Square,’ to Block. Firstly, let’s consider Meta: Facing numerous allegations about privacy and safety, Facebook’s renaming of the parent firm is being seen as a possible distraction, re-branding at a time when the social media giant is battling whistle-blower Frances Haugen’s testimonies.
Secondly, it helps placate investors as Facebook’s stock prices have been declining recently. Having a parent company streamline operations, suggests that there could be more transparency and clarity in FB independently evaluating its ‘Family of Apps’ including Facebook, Instagram and Facebook Reality Labs AR and VR-related business segments. Also, the name is reflective of Facebook’s desire to grow its reach and ad revenue. Facebook, apparently is making a fundamental change by looking at business as two different segments: one for Family of Apps and another for their work on future platforms.
The work on the Metaverse is one such segment, to encompass both the social experiences and future technology. This means over time, the company will take the spotlight off Facebook, with the latter also claiming that over time people won’t need Facebook accounts to access other services. Meta implies ‘beyond’, indicating the company’s attempt to “move beyond what’s possible today”. The name change also sets the pace for the introduction of the Facebook-backed Diem, which it aims to launch as a digital currency pilot. First proposed in June 2019 as Libra, the token was initially intended to be a universal currency tied to a basket of sovereign currencies such as the US dollar and the Euro. Diem was met with scrutiny when it was first introduced. Given Facebook’s wide reach (2.8 bn monthly active users in Q4 of 2020), central bankers and politicians feared it could threaten monetary stability and potentially enable money laundering.
Let’s now turn the spotlight on Square aka Block, tying together its existing services, which include Square, CashApp, Tidal, and TBD. But what is the rationale for the name change? In some ways, it can be associated with the concept of building blocks, neighbourhood blocks, the local businesses and communities. This name change also foreshadows something to do with cryptocurrency. Blockchain is the foundation of cryptocurrency, of which Dorsey is an avid supporter. Besides the launch of TBD, Dorsey also previously announced that a Bitcoin hard wallet and a possible mining rig, are in the works.
The name Block alludes to blockchain — and it will make sense to those who follow Dorsey. The Bitcoin fanatic often tweets about crypto and blockchain-related technologies. Square Crypto, a project aimed at advancing Bitcoin, will now be called Spiral. In recent months, Dorsey has revved up Square’s efforts in several cryptocurrency-related areas. In October, he tweeted Square is considering building a Bitcoin-mining system based on custom silicon that could be used by people and firms worldwide. In November, Square published a white paper describing plans for a decentralised cryptocurrency exchange for trading Bitcoin, fiat money or real-world goods. Like Facebook, Square’s name change may not impact users directly. However, it does signify the group’s futuristic direction, reflecting the wider world that it intends to impact. As the company expanded, it became confusing to have a corporate name that overlapped with just one of its businesses. The flagship product focus indicates a similar strategy adopted by Meta Platforms Inc last month. Subtle or overt, both the social media giants are training their sights on millennials rapidly adopting blockchain and crypto.