Push the Novi project, Facebook is determined to build the Metaverse territory

In the eyes of social giants, there are elements that they value in the blockchain world. This trend is closely related to encrypted payments and NFTs.

Two years later, following the “Libra Project” Libra dystocia, Facebook has launched a new blockchain project, this time the theme is meta-universe.

On October 19th, Beijing time, Facebook announced that it would recruit 10,000 employees in Europe in the next five years to accelerate the construction of its meta-universe vision. Immediately afterwards, Facebook launched an experimental cryptocurrency wallet service “Novi” and chose the American cryptocurrency exchange Coinbase as its pilot custody partner. However, the project was opposed by the US political circles, and there were many Americans. Members of the Senate asked Facebook to stop the project.

The biggest difference from the previous white paper on the Libra plan is that this time Facebook decided to act directly. According to foreign media reports, a person familiar with the matter said that Facebook plans to change the company name next week, and Facebook itself may only be one of the products.

Blockchain trials with twists and turns

Novi is essentially a continuation of the Libra project.

Facebook released the Libra plan white paper in June 2019. Starting from the first quarter of 2020, it plans to issue blockchain-based cryptocurrency Libra in 12 countries around the world, and launch a “Calibra” digital wallet application software. The plan was opposed by regulators as soon as it was released. As a result, Libra fell into a difficult birth, and many important major partners withdrew one after another, such as PayPal, Visa, Mastercard, etc.

In order to ease tensions with regulators, Facebook has repeatedly modified the Libra plan.

In the original description, Libra is a global stable currency backed by a basket of currencies and other assets, which would mean that it is similar to the Special Drawing Rights (SDR) of the International Monetary Fund (IMF). However, the design drew opposition from the United States and some European countries, and only Switzerland gave it a positive comment. Due to regulatory resistance in various countries, Facebook made its first revision in April 2020. In Libra’s original plan, Libra Coin was modified to a single currency stable currency (such as LibraUSD, LibraEUR, etc.) to seek global supervision and support from central banks around the world, and to better integrate with the CBDC trend set off by global central banks.

In order to restore the image of Libra in various global supervision and distinguish between old and new Libra projects, at the end of 2020, “Libra” will be renamed ” Diem “, and the Diem Association will be responsible for the implementation of the plan. Stable currency.

In April of this year, Diem was exposed by the media that it was negotiating with the Swiss financial regulator. Once the payment license is obtained, Diem will make practical progress and start a pilot. However, in May, Diem voluntarily withdrew its application for a payment license to the Swiss financial regulator and decided to transfer its business to the United States. Diem’s ​​US subsidiary has reached a cooperation with the California state chartered bank Silvergate to prepare for the issuance of US dollar-backed stablecoins. . However, the Diem project has not disclosed new developments since then.

Facebook, which has been frustrated continuously, has not given up its attempts in the field of cryptocurrency. This time it directly launched the Novi project.

Novi’s official website shows that it currently supports the use of USDP (Pax Dollar) for remittance and receipt in Guatemala and most states in the United States. 1 USDP is equal to 1 U.S. dollar. The use of Novi in ​​”most states in the United States” means that Novi is registered as a money service company (MSB) with the Financial Crimes Enforcement Network (FinCEN) and has a local remittance license.

The market generally regards Novi as the predecessor of Calibra in the original Libra plan. Once Novi was launched, it drew opposition from some congressmen. U.S. Senators Brian Schatz, Sherrod Brown, and Richard Blumenthal quickly wrote to Facebook CEO Mark Zuckerberg. The opposition mainly considered Facebook’s past scandals. The lawmakers believed that Facebook could not be trusted to protect user data or manage the payment network, so they asked Facebook to “immediately stop the Novi pilot” and promised not to bring Diem to the market.

The Novi project was originally to provide services and support for Diem, which is why when Novi was launched, lawmakers worried that Diem would be launched next. As of the release of the manuscript, Zuckerberg has not responded to the senator’s protest, and the outside world can only see Facebook showing its determination to move into the blockchain industry with its own actions.

Facebook blockchain executive David Marcus said in the latest Twitter that he knows what he is doing is a challenge to the existing payment system. They will have the opportunity to help many people who are ignored by the current financial system and change the existing The rules of the game, “Once we have a solid customer base, we will provide cheaper merchant payments and profit from merchant services.”

On the other hand, Diem officially issued a new announcement to clarify the relationship between Diem and Facebook to legislators again, indicating that Diem is an independent organization, Novi is only one of the members of the Diem Association, and Novi’s pilot has nothing to do with Diem. In addition, the project revealed that it is currently undergoing project design adjustments, claiming that senior regulators believe that Diem is the best designed stablecoin project ever seen by the US government.

How do you feel about using Novi? Some overseas netizens said that the use of Novi does not make people realize that this is a blockchain product, which means that Facebook has gained outside recognition for the ease of use of the product.

Facebook’s meta-universe puzzle

In addition to continuing to advance the Diem project, Facebook is trying to make a big splash in the field of meta-universe, and Diem, Novi, and NFT are considered to be part of the building of Facebook meta-universe.

Facebook’s enthusiasm for Metaverse is closely related to its situation.

In the second quarter of this year, Facebook submitted a mixed financial report. Although quarterly revenue and U.S. stock income exceeded market expectations, monthly active users did not meet expectations: as of June 2021, the number of daily active users of Facebook increased by 6.7% year-on-year. Compared with the year-on-year growth rate of 12.6% in the same period last year, it was down 5.9 percentage points.

In addition, Facebook has always been heavily dependent on the advertising business, but in the second quarter report it warned of the negative impact of Apple’s new privacy policy. It is expected that by the third quarter, Facebook’s advertising business will be more affected.

Apple’s new privacy policy may affect Facebook and other social media’s advertising to consumers, and it is expected to increase Apple’s advertising business. Analysis company Evercore ISI predicts that Apple’s advertising business will reach $5 billion this fiscal year.

The user’s daily active growth rate has slowed down, and the advertising business has been affected by Apple’s new privacy policy. The market has expressed concerns about Facebook’s future.

Facebook has reached a critical moment, that is, where is the next growth point after the trillion-dollar market value?

Meta universe is the answer given by Facebook to the outside world.

Zuckerberg mentioned “metauniverse” 16 times in a conference call in July this year. Zuckerberg believes that metaverse is the ultimate expression of social technology. The fields that Facebook currently focuses on, business, and the next computer platform are all services. The greater goal of building the meta-universe. From his remarks, it can be seen that Facebook will sell related hardware as cheaply as possible in the future, and ultimately make money through Metaverse’s own business model and advertising, especially the sales of virtual goods.

As a result, the market speculates that NFT will occupy an important part of Facebook’s meta-universe plan, because NFT is expected to become an important form of carrying digital virtual goods. Correspondingly, people in the NFT industry also believe that going to meta-universe will make this The industry has a better future.

In August of this year, Facebook blockchain executive David Marcus revealed in an interview that Facebook is exploring various ways to enter the NFT field, and Novi will support NFT storage. Storage issues are currently a major pain point in the NFT industry.

In actual action, Facebook has invested in the VR field, such as acquiring virtual reality helmet manufacturer Oculus and developing Horizon Worlds (the name of the VR version that has not yet been released by Facebook-meets- Roblox ).

In the financial report for the second quarter of this year, Facebook stated that in the future, it will continue to invest in the construction of Metaverse at an annual scale of 5 billion US dollars. On September 27th, Facebook announced a $50 million special fund for the development of the Meta universe platform.

Social media’s blockchain battle

There are also serious involutions among US stock technology companies, which has prompted some technology companies to jump onto the stage of blockchain.

In the advertising business, Facebook faces competition from Google. In the second quarter of this year, Google’s advertising revenue accounted for 80% of its total business. Its total advertising revenue reached US$50.44 billion, a year-on-year increase of 69%. Among them, Google’s YouTube advertising revenue in the second quarter exceeded US$7 billion, a year-on-year increase. An increase of nearly 84%.

Facebook’s advertising revenue accounted for 98.29%, and advertising revenue in the second quarter was $28.58 billion, an increase of 56% year-on-year.

Twitter is Facebook’s main competitor in social media. Although the revenue and net profit of the two are very different, Twitter has delivered a good report card in the second quarter, including faster-than-expected revenue growth and in line with expectations. The number of daily active users.

It is worth noting that Twitter is also Facebook’s rival in the field of blockchain social media.

In mid-August this year, Twitter founder Jack Dorsey announced that encryption technology developer Graber will lead the Bluesky project. Bluesky is a “decentralized social media” plan proposed by Twitter in 2019. Due to the epidemic, “Section 230” (Section 230 can be regarded as an exemption for American social media companies, that is, the company does not need to be a third party or user in their The content posted by the platform assumes responsibility, Trump’s attempt to repeal the clause during Trump’s tenure) has been temporarily shelved, and now it has been restarted.

In September of this year, Twitter announced partial support for encrypted payments, which will be supported by Strike, and announced later that it will add NFT verification to the platform.

Facebook and Twitter have announced their support for encrypted payment services, moving towards meta-universe and decentralized media respectively. In September, YouTube’s game director said on Twitter that they are optimistic about NFTs.

When the above-mentioned social media were seeking new growth points, they unanimously set their sights on the blockchain world. Whether it is meta-universe or decentralized media, in the eyes of social giants, there are elements that they value in the blockchain world. This trend is closely related to encrypted payments and NFTs.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/push-the-novi-project-facebook-is-determined-to-build-the-metaverse-territory/
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