Facebook’s latest data push creates risk for the payments industry
Facebook is again pushing the limits of user’s trust — both in the platform and its “renewed” commitment to privacy protection.
The tech giant has been in discussions with major banks to make the case for a feature in their messaging app that would allow users to view bank account balances and be alerted to fraud — ultimately spending more time on the messaging platform.
While Facebook is clearly desperate to bring new services to users following last month’s historic plummet in market value, they cannot escape criticisms of their invasive advertisements, and data misuse — the latter of which influenced one large U.S. bank to walk away from the offer.
Facebook asserts that the proper steps to secure our data have been taken since the Cambridge Analytica debacle and that it doesn’t have special relationships, partnerships, or contracts with banks or credit card companies to use their customers’ purchase data for ads — but I’m not buying it.
Due to all the data breaches and privacy mishaps, there is now a strong demand for a better, more secure solution for digital transactions.
This is where blockchain technology comes into play. Using blockchain, the consumer data paradigm shifts so that individuals, not corporations, can own their personal data. What is it? Blockchain is a decentralized and immutable source of information maintained by thousands of individual networks, or nodes, around the globe.
Due to its decentralized nature, the potential of blockchain-based systems alleviating data privacy concerns is unmatched. Blockchain technology is designed to create an immutable record, and can't be manipulated the same way centralized services can. One point of failure on a blockchain sees the network move forward without a hiccup. One point of failure on Facebook could shape a presidential election.
Facebook is running out of chances and, frankly, does not deserve the opportunity to hold our most sensitive financial data. After all the failures and betrayals, the day the social network set the record for biggest stock market fall in history should be a national holiday.