Many industries and companies have already taken the opportunity of working with blockchain and have made remarkable profits. Now, Facebook, the most used social networking brand, seems to show interest in doing the same. As per information, the company will be working with NFTs and stable coins alongside streamlining crypto trading and exchanges. 

Let us get more insights into the topic:

Understanding Diem

Diem is a payment system based on Permissioned Blockchain technology. In 2019, the most prominent social media network association: Facebook, inc introduced the concept of Diem ( At the time, with the" name" "Libra"). Aside from a digital payment gateway, Facebook also proposed its inherent cryptocurrency of the same name. 

Diem will comprise an association of around 26 members who will only have permission to access crypto exchanges via the Diem network, and its processings will not depend upon cryptocurrency mining. Diem association is basically a partnership association of different companies from the field of technical sectors, monetary payments, NGOs, e-commerce marketplaces, and telecommunications. Diem association will be liable to look after the currency, exchanges, and projects in the network and process cryptographic data records.  

Facebook has disclosed some of its architecture works, such as the use of Rust programming language to write source code for Diem and Move programming language for writing smart contracts as well as custom exchanges. The Move is designed to be compiled to bytecode and function as a statically-written programming language. 

Though the company is about to launch Diem as a Permissioned Blockchain network, it plans to transform Diem into a permissionless Pos system within five years. However, the real-world launch of Diem is still in the process. Originally Facebook planned the launch in 2020, but due to some issues, it was postponed. Now, It is anticipated to take place in 2022. Currently, only the introductory code of the Diem association is accessible.

Reasons for introducing Diem

Facebook proposed Diem (Libra) with a hope to spread its business from simply a social networking platform to online international transactions. The company visualizes Libra working in a partnership with a worldwide credit card and financial payment organizations. Further, it will formulate a digital token that will get support from different currencies. 

If everything goes well, Diem will be empowering seamless exchanges between businesses and customers across the world. This way, more people will achieve financial freedom by freely accessing remote financial services. However, Diem still has to get regulatory approvals.

Facebook has built its inherent digital wallet named Novi ( Formally known as "Libra"), which is also among the members of Diem as well as an investor. The company has taken this initiative in the light of the fact that today cryptocurrencies are seen as a way to achieve financial liberty. With an increasing number of full-time crypto miners, a new reliable way to earn is introduced. Any individual with primary blockchain and crypto knowledge can start with trading and investment of digital money. 

Individuals can either complete a blockchain/cryptocurrency certification to grab a job in the field or get some training and advice from crypto experts to become a part of the processing of crypto money and earn profits. Such money-making proceedings involve:

• Crypto staking.
• Becoming a loan provider.
• Becoming node operators.
• Practicing buying and storing of other crypto money, and so forth.

Facebook and NFTs

Non-fungible tokens are receiving tremendous attention from digital investors across the globe. It is evident that any company would want to try its luck in the NFT industry. Facebook is no exception. Facebook Inc. is now considering getting involved in the arena of NFTs. The company annotated it'd be investing in creating NFT-related features and products. 

As per the statement of the Facebook executive director, the giant social network company is looking at every possibility to get involved with NFTs Industry, as the company is fully ready to experiment with new trends. 

Facebook has established an internal team known as Facebook Financial or F2 dedicated to Facebook's Digital wallet "Novi." The team is designing the wallet to carry NFT transactions. Facebook is planning to take a customer-centric initiative while creating their wallet, providing a proactive NFT trading support for a large base of consumers. However, in-depth detail on NFT-related features and products is not available currently. 

The company is planning to launch Novi alongside Deim.

Facebook and Stable coins

Diem association Facebook's cryptocurrency group is planning to embark on a USD stable coin. Stablecoins are a form of crypto money pegged to fiat money. The company will be making this Move to fulfill its yearnings to concentrate on the United States first. 

Besides, the 26 nonprofits and financial firms in membership with the Diem association are coming together for this cause. They agreed upon switching the area of its prime functions from Switzerland to the United States of America. Moreover, it will be nullifying its payment system license bondage with the Swiss financial controller.

Further, a Diem network's unit, "Diem," will be liable for operating the blockchain technology-based payment system. This payment system will be designed to run timely Diem stable coin transactions. In addition to this, it will register itself as a money services firm with the U.S. DepartmeTreasury'sasury's financial crimes enforcement network. 

The most prominent bank known for innovative businesses in the sector of financial technology and cryptocurrency, the Silvergate Bank will take the job of issuing USD stable coins. This California-based bank will also look after Diem USD reserves. Diem association has publicly announced the launch of testing of the stable currency. However, nothing has been mentioned by them yet. 

Conclusion

As we can see, Facebook is all set to start its journey in the blockchain and NFT space. Though some supporters are waiting for the official launch, Facebook faces backlash from many fintech businesses. However, the product's initial launch will tell us how this initiative by Facebook will perform. We have to wait for a while to know whether it passes or fails to satisfy users' needs and achieve its ambitions connected to this new launch.