Before the introduction of Meta, Facebook was trying its hands in the cryptocurrency market by introducing built-in digital currencies. However, the company faced a considerable amount of opposition from government regulators on this front. It seems that to make amends, Meta has decided to ditch its stablecoin dreams and join forces with Bitcoin and LN.
To realize its new designs, Meta has set up a new organization called LightSpark. LS is getting financial support and technical sponsorship from Andreessen Horowitz, Paradigm, Matrix Partners, and Coatue.
LS has also shown interest in using the Lightning Network. This service would potentially allow the users to make small everyday purchases with cryptocurrencies. LN is a layer 2 solution built on the Bitcoin network to increase the efficiency of the network.
LN has faced some technical fallbacks and criticism in the beginning. However, the layer-two solution has managed to establish itself as a viable option to facilitate petty cash transactions on the Bitcoin network by ensuring a significant cut back on transaction fees. At present, projects like Lightspark have started to flock around LN.
There are already big tech companies like Blockstream that are working alongside LN on a commercial scale. With its new strategy, Lightspark will face rivalry from names like Strike as well as Blockstream, which is offering LN-backed digital payments applications in 200 countries.
Cloud Lightning node facilitator Voltage is also added to the list of Meta’s LS competitors in terms of hosted node spinning.
David Markus’s New Crypto Redemption Plan for Meta
Thus far, Meta has seen two of its stablecoin projects, Libra and Diem, going to dust. However, David Marcus, a former PayPal employee who also created the concept for Meta’s former failed stablecoins project, recently shared on Twitter that he is excited to commence the Bitcoin and LN initiative for the organization.
Meta’s first stablecoin invited bids from Andreessen Horowitz, VISA, MasterCard, PayPal, eBay, Uber, Spotify, and Stripe, among others.
However, the projects faced issues from congress. Policymakers like German FM Olaf Scholz opposed the entry of Libra and Diem and claimed that the government must do everything in its power to keep the private sector from hijacking monetary control on an international scale.
Meta losses with Diem are estimated at $27 billion, which are now sold to Silvergate for a measly amount of $182 million. Meanwhile, Meta is conducting tests with NFTs on Instagram.