Mark Zuckerberg: “Encryption is decentralizing”

Here is a fast recap of the sequence of occasions that sparked the thought for this text:

  • Facebook will combine Facebook, WhatsApp, and Instagram into Facebook Network;
  • Facebook is trying to blockchain know-how to resolve each technological and picture issues;
  • Likely, Facebook will make the most of blockchain know-how to safe delicate information and allow p2p funds;
  • It might introduce native cryptocurrency, nevertheless it’s unlikely to occur earlier than 2020;

On March 6, Mark Zuckerberg revealed a 3000+ phrase essay “A Privacy-Focused Vision for Social Networking”. In the essay, he outlines the issues confronted by Facebook, the Internet and the society, in addition to his imaginative and prescient of the long run.

Lately, the rumors have been swarming about Facebook adding blockchain technology and even introducing its own cryptocurrency. In relation to this sequence of occasions, it stays to be seen if Mr. Zuckerberg supplies any validation for the rumors talked about in his tackle.


On the floor, every part seems rosy for Facebook: its consumer base continues to develop, it’s one of many greatest firms on the earth by market capitalization, and it’s extremely worthwhile. Yet recently, increasingly voices have been expressing concern about its future, and the enterprise begins to resemble “Titanic” simply earlier than the ship hit the iceberg. Apparently, many of the network’s users turned out to be fake accounts, and a current examine found that for the primary time in historical past, the usage of the platform has decreased in the U.S.

Much of the backlash confronted by Facebook is attributable to what public perceives as insufficient therapy of customers’ privateness, finally culminating within the #DeleteFacebook motion. Mr. Zuckerberg clearly understands that except the corporate management takes robust measures, it’s now not unfathomable to think about a world of the long run the place Facebook joins the rank of Napster, MySpace, and Netscape within the archeological museum of know-how.

Zuckerberg’s Vision of the Future

Mr. Zuckerberg’s imaginative and prescient is addressed to the three constituencies: individuals, governments, and consultants. The doc issues “building a privacy-focused messaging and social networking platform”. He notices how “Over the last 15 years, Facebook and Instagram have helped people connect with friends, communities, and interests in the digital equivalent of a town square. But people increasingly also want to connect privately in the digital equivalent of the living room”.

Consequently, he believes that sooner or later, the dominant approach of interacting on the “Facebook network” shall be by Messenger and WhatsApp. Furthermore, he admits the general public could also be skeptical of its intentions and capabilities:

I perceive that many individuals don’t suppose Facebook can or would even need to construct this sort of privacy-focused platform — as a result of frankly we don’t at the moment have a robust fame for constructing privateness protecting companies, and we’ve traditionally centered on instruments for extra open sharing,

Nevertheless, the Facebook founder argues that the social community has demonstrated that it listens to its customers and is prepared to introduce the options needed and requested by the neighborhood.

Facebook Network 2.0

Mr. Zuckerberg outlines the 5 foremost rules of the long run “privacy-focused platform”. The following traces are direct quotations from the document:

Private interactions. People ought to have easy, intimate locations the place they’ve clear management over who can talk with them and confidence that nobody else can entry what they share.

Encryption. People’s personal communications must be safe. End-to-end encryption prevents anybody — together with us — from seeing what individuals share on our companies.

Reducing Permanence. People must be snug being themselves and shouldn’t have to fret about what they share coming again to harm them later. So, we gained’t maintain messages or tales round for longer than essential to ship the service or longer than individuals need them.

Safety. People ought to count on that we’ll do every part we will to maintain them secure on our companies throughout the limits of what’s attainable in an encrypted service.

Interoperability. People ought to have the ability to use any of our apps to succeed in their pals, and they need to have the ability to talk throughout networks simply and securely.

Secure information storage. People ought to count on that we gained’t retailer delicate information in nations with weak data on human rights like privateness and freedom of expression in order to guard information from being improperly accessed.

Blockchain and Cryptocurrency (Word Cloud)

Can we discern something from Mr. Zuckerberg’s lengthy exposition on the way forward for blockchain and cryptocurrency inside this new Facebook Network?

A Word Cloud of Mark Zuckerberg's Essay

The phrase “encryption” is used 24 instances by the creator, the expression “end-to-end encryption” is used eight instances; nevertheless, maybe probably the most telling phrase is “Encryption is decentralizing”. In addition, there are hints that some cost mechanism shall be launched:

“And all of us count on to have the ability to do issues like funds privately and securely”, “after which construct extra methods for individuals to work together on high of that, together with calls, video chats, teams, tales, companies, funds, commerce, and finally a platform for a lot of other forms of personal companies”, “You can think about many easy experiences like this — an individual discovers a enterprise on Instagram and simply transitions to their most well-liked messaging app for safe funds”, “Beyond that, vital thought wants to enter the entire companies we construct on high of that basis — from how individuals do funds and monetary transactions”.

From the phrase cloud evaluation, we will discern different essential themes from Mr. Zuckerberg’s message: individuals, personal [privacy], safe, future. It’s about individuals’s safe and personal future.

Crypto Insider has reached to Facebook for remark, and the response was:

Thanks for reaching out. We aren’t commenting on these reviews, that are speculative. We’ll you’ll want to let you recognize when we have now extra to share.

As it seems, we will solely speculate on these subjects. Clearly, there is a plan to combine some type of a cost mechanism into this new collective community that can enable making p2p funds privately and securely. It looks like cryptocurrency makes good sense for this goal. If so, will Facebook launch its personal native coin (Facecoin?) or allow the usage of present cryptocurrencies? Will or not it’s a stablecoin?

It’s unimaginable to say for sure, because it’s very seemingly that Facebook’s management itself doesn’t have certainty with regards to these points. Mr. Zuckerberg reiterates all through the essay that this transition to the “privacy-focused” platform is a long-term initiative, it’s not one thing that can occur in a single day. He additionally stresses that all through the journey, Facebook shall be “working openly and consulting with experts across society as we develop this”.

It is seemingly that over the previous few months Mr. Zuckerberg has taken time to familiarize himself with the blockchain know-how and all the advantages it may well harness by way of privateness and safety. However, Facebook is nonetheless within the early exploratory levels of this course of. There are at the moment at the very least twenty open blockchain-related positions inside Facebook masking numerous areas: technical improvement, funds, advertising and marketing, cybersecurity… Clearly, Facebook is not simply centered on growing blockchain options, but additionally educating the general public on its advantages and the way it can probably make all the ecosystem higher.

If we return to the 5 foremost tenets of Facebook Network 2.0, the place would blockchain match?

Encryption – occurs to be one of many foremost elements of cryptography which, in flip, is one of many foundational blocks of the blockchain. Encryption is congruent with blockchain, however one doesn’t want blockchain for encryption.

Reducing Permanence – blockchain is the alternative of this notion. One of the best advantages of blockchain know-how is permanence and immutability.

Safety – blockchain is nearly unhackable, nevertheless, it’s not well-suited for large information storage.

Interoperability – blockchain can function a fantastic “base” layer for the brand new built-in community that connects the three foremost companies owned by Facebook: Facebook, WhatsApp, and Instagram.

Secure Data Storage – “As we construct our infrastructure all over the world, we’ve chosen to not construct information facilities in nations which have a monitor report of violating human rights like privateness or freedom of expression. If we construct information facilities and retailer delicate information in these nations, relatively than simply caching non-sensitive information, it might make it simpler for these governments to take individuals’s data.

Upholding this precept might imply that our companies will get blocked in some nations, or that we gained’t have the ability to enter others anytime quickly. That’s a tradeoff we’re prepared to make”.

For occasion, just lately, Roskomnadzor (Russia’s Internet regulator) has issued a warning to Facebook that unless it complies with the Russian law requiring the personal data of Russian citizens to be stored in Russia, it will be fined. Although Mr. Zuckerberg is stating that Facebook doesn’t thoughts being blocked in sure nations, maybe, blockchain might present the corporate with an answer that can fulfill everybody.

If Facebook have been to make the most of a decentralized blockchain (on this case, we outline “decentralization” as “significant geographic node dispersion”) to retailer at the very least probably the most essential and delicate figuring out information, then these information could be saved in each nation and in no explicit nation. But this takes to the beforehand recognized problem of permanence.

Will Facebook construct its personal blockchain with each consumer serving as a node, will it construct on high of one of many foremost public blockchains resembling Ethereum or EOS, a personal blockchain like Hyperledger or will it embrace one of many rising public blockchains that provide enhanced privateness safety?

It appears unlikely that Facebook will construct its personal blockchain as this may be an enormous aspect challenge for the corporate, constructing on high of Hyperledger will go in opposition to the brand new ethos that the social community is making an attempt to advertise. Adopting Ether (if it comes up with scaling answer), EOS or a public chain that provides enhanced privateness appears to be a extra logical alternative. Prediction is a fruitless train, however one prediction I’m prepared to make – if Facebook points its personal cryptocurrency, it’s not going to occur earlier than 2020 and it’s more likely to be a stablecoin.


Although it’s not unbelievable that sooner or later, Facebook might pull a plug on all the blockchain initiative or at the very least severely curtail it, however, the truth that this large is exploring is optimistic information for the blockchain proponents.

And if sooner or later, Facebook points a cryptocurrency of its personal or adopts present ones, it’s going to take all the business to a distinct stage. No different entity on the earth is able to introducing cryptocurrency to over two billion individuals directly. In addition, at this level, it appears way more possible that Facebook will provide blockchain know-how and cryptocurrency to its present large consumer base relatively than one of many blockchain-based social media platforms turning into a serious participant on the earth of social media within the close to future. Facebook’s new imaginative and prescient solely reinforces the premise that social media is an excellent use-case for the blockchain.

Whatever plans Mr. Zuckerberg might have for Facebook and blockchain know-how, the query stays: is it too little, will inertia carry Facebook to its doomsday rendezvous with the iceberg?

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