The Facebook project has been secretly going on for some time now. The project deals with blockchain/cryptocurrency, and the company is quite tight-lipped about which form the project might take. There have been sources stating that this project consists of a fiat-backed ‘stablecoin’ that will be integrated on to WhatsApp messenger.
The company’s secretive crypto division has reportedly made its first acquisition by onboarding a research team from a blockchain startup that specializes in smart contract development. The blockchain startup is supposedly Chainspace, founded by University College London researchers.
One of the Facebook spokespersons confirmed that the company has hired employees from Chainspace but denied to comment any further about hire specifics. He stated that the company isn’t acquiring any of Chainspace’s technology. He added, “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.”
The social media giant has hired around 40 employees to work on its Facebook project. It is to be lead by Davis Marcus, the former head of Messenger and a former Coinbase board member, as mentioned on CCN.
It’s unclear how much Facebook would be willing to pay for an acquisition in the blockchain space. Chainspace was in the process of raising an initial round of funding of less than $4 million. Early backers of Chainspace include Lemniscap and MW Partners, as published on Cheddar.
There is also some distrust among the people with regards to the Facebook-backed cryptocurrency. This is in reference to the Cambridge Analytica scandal which revealed that Facebook had been selling user data of over 80 million users to a political firm. This breach of trust by Facebook is not compatible with the idea of cryptos which is decentralization and a means to fight back exploitative powers.
According to the Bitcoin Exchange Guide, only time will tell if the Facebook project can compete with the giants like Bitcoin and other stablecoins. As it did try to expand into email services but couldn’t defeat established services like Gmail and Yahoo!.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]