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Facebook explores NFTs functionality for the Novi-Diem ecosystem


www.thecoinrepublic.com 13 September 2021 02:23, UTC
Reading time: ~4 m

  • NFTs integrations with social media platforms will not help boost its adoption
  • Facebook is exploring the functionalities of such crypto tokens in its Novi-Diem ecosystem
  • Facebook’s crypto wallet is in a prime position to support Non-Fungible Tokens
  • Facebook-powered NFTs are likely to be melded promptly into the Diem blockchain

NFTs or Non-Fungible Tokens have witnessed a rapid adoption in sectors like entertainment, media, and sports. Several big brands have also shown interest to become the first movers in the industry and create their digital collectibles. When it comes to such tokens, imagination is the only limit. Notably, social platforms have played a significant role in the introduction and proliferation of NFT tokens among striking audiences. Moreover, recently, it is revealed that the social media behemoth Facebook is exploring the functionalities of such crypto tokens in its Novi-Diem ecosystem.

Novi wallet plans to implement NFTs support

Over the past few years, Facebook has faced several regulatory blows. The planned crypto wallet and native token of Facebook have far-ranging implications for the financial world. Indeed, the social media platform has the potential to disrupt how billions of people transact daily. 

The Novi wallet and Diem tokens are edging to their official launch. However, Facebook has not been obvious to the NFTs craze. According to David Marcus, financial head of Facebook, the Novi wallet is in a prime position to support Non-Fungible Tokens.

NFT integration with social platforms

There appears to be unanimity among key players that the integration of NFTs and social media platforms is just a period. According to María Paula Fernandez, adviser to the Golem Network’s board of directors, she is not comfortable with the integration due to both positive and negative eventualities. She cited that NFT marketplaces are, for the most part, transactional and profit-driven. Hence, it’s more concerning about other Web3 applications melding with the social media giant.

Simultaneously, Markus Bopp, chief training officer and founder of NFT multichain infrastructure platform Unifty, also found concern on the subject. According to Bopp, the proliferating sector could have some engaging use cases for platforms like Facebook. Going beyond the trade of digital collectibles, the functionality of such crypto tokens could procure the solution to some vexing troubles for various social media platforms. Duch issues include proof of identity and the need for verification.

With the integration of Non-Fungible Tokens into social media platforms anticipated to become a reality, the next deliberation is if such an undertaking will have a fundamental effect on the adoption of the wider cryptosphere. Bopp acknowledges that the sweep of the biggest social media platforms will be vital in propelling the use of crypto. Notably, it is essential to consider that user experience for crypto mass adoption should be at such a level where the user doesn’t even need to know they are interacting with a blockchain.

Integration with social media platforms is not vital

Fernandez noted that while Facebook was failing with its crypto project, NFTs made their route towards widespread use. She further explained that the social media giant has already tried and failed to integrate crypto, and nonetheless, NFTs have gone mainstream without it. It is noteworthy, the decentralized industry is created so it doesn’t require Facebook to help platforms reach a mainstream audience.

What would Facebook-powered Non-Fungible Token look like?

It’s yet to be cleared whether and when the Diem wallet would interweave aid for the likes of Bitcoin and Ethereum. Following the scenario, it seems clear that the Facebook-powered NFTs are likely to be melded promptly into the Diem blockchain. Hence, interoperability with decentralized tokens like Ether coin may not be supported.

Fernandez doesn’t see the centralized sector weighing up to the fancies of the Ether network, which introduced smart contract functionality and decentralized application (dApps) development. In contrast, Facebook-powered Non-Fungible Tokens will be limited to the Novi wallet and Diem cryptocurrency. 

Non-Fungible Tokens are not only artistic objects or collectibles, rather they are financial instruments. The Ether community has triumphed over the art of creating such financial products and has now integrated NFTs within these. But when it comes to Facebook, it can peddle a bunch of jpegs all it wants, still, it has no competition if its transaction layer is not on the Ether blockchain.


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