Chat App To Take On Facebook With Blockchain Help

Chat App To Take On Facebook With Blockchain Help

Kik`s CEO Ted Livingston has stated that the Blockchain-based Kik app plans to counteract Facebook`s ecosystem by creating its own environment that is

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Kik`s CEO Ted Livingston has stated that the Blockchain-based Kik app plans to counteract Facebook`s ecosystem by creating its own environment that is powered by a cryptocurrency.

Canada-based messaging app Kik is among the most used services to venture into ICOs, with 300 million users registered, as techcrunch.com reported at the end of last month. Also, it is the highest financially backed company with over $120 million raised to date.

Kik is reportedly aiming to develop its own ecosystem for digital goods and services. The latter is to rely on cryptocurrencies.

In an interview with the online media, Kik CEO Ted Livingston said:

“The broader motivation is that it is really hard for independent developers to compete with huge companies.”

“On one side, you see digital services, on the other they are being owned and controlled by fewer companies because they are the only ones to monetize at scale using advertising. You try to sell things but you are trying to sell to consumers who think everything should be free.”, as he added.

“Even if a few companies can break through, the giants turn to copy and crush. We think this is leading to a future with less choice and freedom for consumers [and] for the first time ever we can present a potential solution to change all that.”, according to him.

Reading between the lines, techcrunch.com speculated that Kik`s founder refers to Facebook, the world`s largest social network that operates Messenger and WhatsApp. The latter are known as the two largest chat apps (based on userbase) which compete with Kik and the others.

However, what is this new kind of ecosystem? A token sale (or ICO) is used to generate funds, but also the holders of the coins gain ownership of the means of production. This means that they have a stake of the total output of the decentralized system. For this reason, Kik is reportedly thinking that they can build an ecosystem that is not dependent on advertising.

“Kik will be the first mainstream application to integrate a cryptocurrency. This could be a watershed moment for the blockchain sector.”, as Fred Wilson, partner at Union Square Ventures and a member of the Kik board, commented in a statement.

It is to be seen whether these promises will realize into practice.

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