Novi-FT? Novi-FT?

Facebook is currently exploring NFT-functionality within its Novi-Diem ecosystem. But how will this technological solution compare to existing platforms?
Nonfungible tokens (NFTs) have been quickly adopted by the entertainment, media, and sports industries. However, major players like Facebook and Twitter have not yet integrated blockchain technology into their underlying systems. Although users can post about new NFT launches, the end-user cannot purchase or trade these items unless they click on a link that takes them to the platform. Facebook’s plans for a cryptocurrency wallet, native token, and global payment system have had wide-ranging consequences for the financial sector. The social media giant has a huge user base of 2.9 billion. This could cause disruption in the way hundreds of millions of people transact every day. David Marcus, Facebook Financial’s head, admitted that NFTs are gaining popularity and that the Novi wallet is well-positioned to support them. Social media platforms like Facebook are making rapid progress to keep up with this rapidly growing sector. It remains to be seen what a Facebook-powered NFT will look like, and if it will be mutually beneficial to the industry giant and the crypto sector. There seems to be a consensus among industry players that integration of NFTs with social media platforms is only a matter of time. Maria Paula Fernandez is an adviser to the Golem Network’s Board of Directors. She stated that there are both positives as well as negatives to this possibility. NFT marketplaces are, for most, transactional and profit-driven. I would be more worried about other web3 apps integrating with Facebook.” Markus Bopp, chief trainer and founder of NFT multichain platform Unifty, also spoke out on the topic. Bopp stated that NFTs could solve many problems faced by social media platforms such as proof of identity and verification. “An NFT-based system could fix this problem with minimal effort and combine with a profile picture. Identity proof is just one possibility. NFTs excel at gamification, value-added ownership, and other things that can be used to investigate new possibilities. These powerful tools will allow social media entities to explore literally thousands of new possibilities. NFTs have become widespread in a short time. Fernandez said that Facebook had failed to integrate cryptocurrency into its platform. “We are building an industry which does not require Facebook to create platforms that reach mainstream audiences across the globe.” What would Facebook-integrated NFTs look? The Libra Foundation is continuing to march towards the launch of the Novi wallet. It is likely that the Diem blockchain will integrate its own NFT platform. Interoperability between decentralized tokens such as ETH may not work, so it will likely integrate its own NFT platform directly into the Diem blockchain. However, there could be trade-offs for users, and varying implications for wider crypto space. “Facebook is likely put their own spin to NFTs, just like they did with other things. As they try to control the tech for their users, we should expect a compromise in ownership. They will likely be successful to a large extent, but it will also drive discovery of more open and centralized sources. Fernandez believes that Facebook will not be able to surpass this. I don’t see Facebook capable of topping this.”Crypto community key to NFT popularityThe reality of a Facebook user being able to buy an NFT that pops up on their feed is some way off, given that a launch date for Novi and Diem is still not set in stone due to ongoing regulatory considerations in different jurisdictions.Related: Bitcoin tipping on Twitter: A game changer for crypto adoption?At the same time, decentralized NFT marketplaces are thriving, powered by the very communities that built the infrastructure and trade the tokens that power their ecosystems. Fernandez shared a poignant conclusion, telling Cointelegraph that Facebook does not have a community that is similar to that of Ethereum. Fernandez said that NFTs are more than cultural objects or collectibles. They are financial instruments. The Ethereum community has mastered building financial instruments and has integrated NFTs into these. Facebook can sell a lot of jpegs, but it is no match for Ethereum’s transaction layer.

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