Even as Facebook is facing the wrath of investors and users over the data leakage, there is one technology that could see a gain from it. That was none other than the emerging Blockchain technology. However, it remains to be seen whether the new age technology could be in a position to curb the misuse of data provided by users.
Good News for Blockchain
In a research note to clients, RBC Capital Markets analyst, Mitch Steves, believes that the fallout from Facebook issue could be a good one for Blockchain technology, CNBC reported. He thinks that a situation would arise where the user need not have to provide his or her photos to the social media firm. He was responding to queries on how the blockchain technology could work with social media firms.
“Instead, you could just share that photo specifically with people, and then you’d be able to track it and make sure it’s not shared with someone who gets access to your information.” While stating that users could bet 100 percent for tracking all this stuff, he thinks that it would be the ultimate objective in the long-term.
The analyst pointed that the technology could enable users to keep tabs on their data, as well as, how it was shared. However, it would be tough for users to curb any misuse of data in the first place. In any case, Blockchain technology could resolve the issue of transparency though it could not solve the issue of controlling it.
The brokerage’s comments came on the heels of the New York Times and the Guardian’s Observer reports that brought out the privacy issues on Saturday last. The report revealed how the political data analytics firm could gain access to over 50 million Facebook users’ personal data. Though the company was well aware of such misuse since 2015, the social media chose to remain silent and failed to alert its users triggering more concerns.
$10 Trillion Industry
Though Facebook founder and CEO, Mark Zuckerberg, tried to limit the damages due to the data breach, most of the damages have already happened to the stock. In a blog post, Zuckerberg indicated his responsibility towards protecting user data. However, a senior person, Susan Och, was reported as saying that big technology, as well as, the centralized control failed to function. That would mean that it was a key reason why distributed ledger technology could be allowed to take off.
Though the virtual currencies have witnessed a significant drop in value in the recent past, RBC Capital Markets analyst sees the cryptocurrencies and the Blockchain technology value to cross $10 trillion in the next one and half decades. He pointed out that open source software and decentralized computing use would enable the market to grow.
A decade ago, Blockchain technology applications were used for Bitcoin, and the same technology is currently used to create other virtual currencies. Though the social media firm would not face a significant loss in the immediate term, Blockchain technology gaining traction would allow certain pose a problem to Facebook in the long-run.