Facebook Acquired First Blockchain Startup
The social media giant has acquired Chainspace, its first reported blockchain-related project. Facebook hired staffers from the startup to develop new smart contracts platform.
Over a month ago, we reported that Facebook announced five job openings for positions related to the blockchain technology. Earlier, the largest social media platform wasn’t so friendly towards cryptocurrency and blockchain industry. Now, we might see a change of course.
Facebook celebrated the fifteenth years anniversary two days ago. Mark Zuckerberg, the founder of the platform, had some words to say. Obviously, he published his statement on Facebook. Though, he didn’t say anything about possible blockchain projects.
On 4th February, Cheddar reported the Facebook acquisition.
According to the Cheddar’s sources, the Social Media giant acquired a small startup called Chainspace. The process is named ‘acquihire’. Facebook obtained the company for the skills, expertise of its staff, rather than the services or products the company provides.
Chainspace was founded by researchers from University College London. The startup has worked on blockchain scalability problems, notably by working with smart contracts.
Scalability is a big problem in the blockchain industry. Right now, the technology is not scalable to the level of traditional payment systems like Visa or PayPal.
According to the Chainspace’s white paper from August 2017, the team desired to build “distributed ledger platform for high-integrity and transparent processing of transactions within a decentralized system.”
Recently, the startup website was updated to say that the team behind the startup is “moving on to something new.”
According to Cheddar’s report, a Facebook spokesperson confirmed the acquisition of employees from Chainspace but declined to comment on specific hires.
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