Will Facebook and Telegram Kill Bitcoin and Ethereum?
Will Facebook and Telegram Kill Bitcoin and Ethereum?
The year 2019 has been marked by the entry of some established technology companies into the blockchain field. Two of the most notable examples are Facebook and Telegram, which have announced their plans to launch their own cryptocurrencies and blockchain platforms. But what does this mean for the existing leaders of the crypto space, such as Bitcoin and Ethereum? Will they be able to survive the competition from these tech giants, or will they be rendered obsolete by their superior technology and user base?
Facebook’s Libra
Facebook has revealed its ambitious project to create a global digital currency called Libra, which will be backed by a basket of fiat currencies and other assets. The social media giant aims to provide a fast, cheap, and secure way of sending and receiving money across the world, especially for the 1.7 billion people who are unbanked or underbanked. Facebook has also formed a consortium of 28 partners, including Visa, Mastercard, PayPal, Uber, Spotify, and Coinbase, to govern the Libra network and its reserve.
Facebook claims that Libra will be compatible with Bitcoin and other cryptocurrencies, as it will use an open-source blockchain that allows for interoperability and innovation. However, some critics argue that Libra poses a threat to Bitcoin and other decentralized cryptocurrencies, as it will be controlled by a centralized entity that can censor transactions, manipulate the supply, or comply with government regulations. Moreover, Libra may also undermine the adoption of Bitcoin and other cryptocurrencies, as it will offer a more convenient and familiar alternative for the masses.
Telegram’s TON
Telegram is another tech company that is planning to launch its own blockchain and cryptocurrency. The popular messaging app has raised $1.7 billion in a private sale of its tokens, called Grams, which will power its Telegram Open Network (TON). TON is designed to be a scalable and flexible blockchain platform that can support millions of transactions per second, smart contracts, decentralized applications, file storage, identity verification, and micropayments. Telegram also aims to integrate TON with its existing app, which has over 200 million users worldwide.
Telegram’s TON could pose a challenge to Ethereum, which is currently the leading platform for smart contracts and decentralized applications. Ethereum has been struggling with scalability issues, high fees, and network congestion, which have limited its adoption and innovation. TON claims to offer a faster, cheaper, and more user-friendly alternative for developers and users who want to build and use decentralized applications. However, Ethereum also has a large and loyal community of developers and supporters who are working on improving its technology and security through various upgrades and innovations.
Conclusion
Facebook and Telegram are not the only tech companies that are entering the blockchain space. Others include IBM, Microsoft, Amazon, Google, Samsung, and more. These companies have the advantage of having large user bases, established brands, financial resources, and technical expertise that can help them create and market their blockchain products. However, they also face some challenges such as regulatory uncertainty, public trust issues, technical complexity, and competition from other players.
Bitcoin and Ethereum are not going to be killed by Facebook and Telegram anytime soon. They have their own strengths such as decentralization, security, innovation, and network effects that make them valuable and resilient. However, they also need to keep evolving and adapting to the changing needs and preferences of the market. The blockchain space is becoming more diverse and dynamic than ever before, which means that there will be more opportunities for collaboration and competition among different projects.