Cryptocurrency nodes are utilized to resolve the complicated mathematical equations needed to validate transactions and while they are typically decentralized, Facebook is planning to create a foundation with named partners to help manage its new digital coin offering.
The nodes would be far more centralized than bitcoin with 100 or fewer in the payment network.
Contrary to other recent reporting, the new cryptocurrency will apparently not be called GlobalCoin. Sechin, however, seemed to be talking generally about how big USA tech firms like Google, Apple and Facebook are making moves into the energy industry.
Facebook has discussed charging United States dollars 10 million for the privilege to become a member of the foundation, CNBC added, citing the paywalled story on The Information. However, Facebook is heavily betting on the coin's democratic image, hinting that it is capable of helping people in developing countries, where local fiat currencies are anything but stable. Apart from being used within the Facebook ecosystem, the stablecoin could also be a more efficient option for sending remittances than existing services. According to a report by The Information, Facebook's digital currency will function as borderless currency and with no transaction fees attached to it. Therefore, Facebook's GlobalCoin can also potentially push regulators to establish clear cryptocurrency regulations more quickly.
Building on this is the fact that Zuckerberg has also been in talks with the US Commodity and Futures Trading Commission (CFTC) in order to explore whether GlobalCoin will fit within the Commission's regulatory remit.
Other possible foundation members include tech companies and financial firms that Facebook has been actively courting.
The giant of social networking has likewise set up the group inside the organization, headed by the chief David Marcus of Messenger, to investigate the Blockchain innovation and the potential utilization for the platform.