Social Media Companies Join the Crypto World

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The cult of cryptocurrencies is rising with each passing day. But to understand the reason behind this, it is quintessential to know what exactly is cryptocurrency? Cryptocurrencies are digital currencies set up by groups of individuals and secured using cryptography. It is basically a form of digital ledger. Usually, cryptocurrencies are based on the technology called blockchain. A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Thus it contains a detailed list of information as to who has given what to whom; and who owns what. This data is permanent and irreversible thereby making it virtually impossible to create counterfeits. Since cryptocurrencies are largely free from government regulation, many investors and companies are attracted to their possibilities.

With the growing craze of cryptocurrencies, many big social media giants have decided to develop their own cryptocurrency. Since social media is a platform that involves “public” at large, the rage of cryptocurrency is soaring.

Most recent to join the race is VKontakte (VK), the most popular social media platform in Russia. Quoting from the recent report of the Russian news outlet RNS:

“According to [the unnamed source], the current configuration of the project involves the creation of individual accounts for the accumulation of cryptocurrency to all users of the social network.”

Once the cryptocurrency is developed, it would be able to be used by the site’s nearly 100 million active monthly users. However, the Russian social media giant has neither confirmed nor denied any rumors in context to the plans of developing a cryptocurrency.

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Certainly, VKontakte (VK) is not the first social media company to be lured by the appeal of cryptocurrencies. Much of the drive and inspiration comes from the popular US social media giant Facebook. Facebook, too, is working to formulate its own cryptocurrency. The Facebook crypto will be a coin associated with WhatsApp, allowing for near-instant transfers between users.

Counting on the public involvement at large, these social media companies are of a belief that users would readily begin to interact with cryptocurrencies. Thus, the future may see more and more companies joining the crypto world.

Featured image: Pixabay

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