Babbitt column | 5 big questions of FB, Libra's 3-layer system and FB one stone three birds

Facebook's Facebook operation is not good, the growth is weak, and operating income and active users are falling, which is lower than market expectations. According to the analysis of FB earnings in recent years, its income composition is heavily dependent on advertising revenue, which accounts for more than 98% of total revenue, and this part of income is mainly realized through user data-driven advertising. However, Facebook's 2C gene and thinking have constrained its 2B attempt. After experiencing the “unfavorable years” in recent years: the “CamBridge Data Gate” incident in the US presidential election and the double impact of the EU data security privacy protection GDPR, the original major revenue source advertisements are greatly challenged, and are deeply affected by data security and users. Scandals such as privacy protection and false information dissemination. Therefore, it is urgent to solve the dilemma faced by them and open up new business models and sources of income.

Inside Facebook, cracks are beginning to appear. Dissatisfied with the company's attitude towards user data privacy, Jan Koum and Chris Daniels, two founders of Whatsapp, which spent $19 billion on the acquisition of instant messaging tools, left the company; forced by Facebook to become alive, Instagram founders Kevin Systrom and Mike Krieger Brendan Iribe, founder of Oculus, a VR platform that Zuckerberg had high hopes for, also left; public relations and public policy director Elliot Schrage, chief lawyer Colin Star, chief security officer Alex Stamos, partner vice president Dan Rose Alex Hardiman, head of news products, also left one by one; Chris Cox, one of the entrepreneurial "elders" and the company's chief product officer, also left because of the company's new development direction. Team instability has caused widespread criticism among Facebook, its CEO, Mark Zuckerberg, among users, investors, employees and society and regulators.

Facebook's internal and external difficulties, facing five major problems / challenges:

1) A single business model that relies heavily on advertising;

2) Isolated business/application/data and information silos;

3) Lack of privacy protection and data security, facing challenges from government regulators and criticism from users;

4) Fraud, false information, forged accounts and spam/information;

5) Lack of innovation and successful mergers and acquisitions.

In this context, Facebook borrowed from the blockchain, 2.7 billion global users, released Libra, which attracted wide attention and discussion in the international market and industry. #6 in Facebook's six key points of CaLibra/Libra in Facebook FB introduces Facebook's new business model. Facebook Facebook is only an application developer and service provider built on the financial infrastructure Calibra. Facebook is not Calibra, and Calibra is not Facebook. Facebook can't directly benefit from Calibra and can only benefit indirectly like other application developers and service providers, using their own application services. So Facebook will open up a new business model and build its own digital empire.

Libra will be transformed into a three-tier ecosystem by Facebook/Calibra:

1) Digital financial infrastructure: The financial infrastructure built by Calibra, open, not controlled by Facebook, and governed by the non-profit organization Calibra;

2) Digital financial/social service platform: Facebook will build a digital financial/digital social service platform that is also open to itself on Calibra's financial infrastructure. Other people/companies/institutions can also serve their own platforms and provide services to the society. ;

3) Application Services: Facebook will integrate and provide new product services such as e-commerce, payment, investment, content, etc. on the platform, using existing application services (Whatsapp, Instagram, etc.) and 2.7 billion global users; Companies can build their own applications and services on facilities 1) and 2).

Facebook's one stone three birds

Using Libra, Facebook hopes to expand its new business model and solve the five major problems it faces. It will achieve the goal of one stone and three birds and build Facebook's digital social empire. 1) Change the single income model that relies heavily on advertising, and develop new models of financial income and digital life;

2) Integrate isolated business/application/data, change data islands into data gold mines, and open digital society empire;

3) A useful exploration of successful innovation, expecting to break the predicament of past innovations;

Facebook and Libra also face many challenges, regulations, competition and uncertainties. We will wait and see, stand on the shoulders of Bitcoin, Ether and Libra to witness, participate in and create this great blockchain miracle.

"The road is long and the road is long, I will go up and down!"

Author: Larry