According to a recent report, Facebook – a social media giant – just made its first blockchain-related acquisition. Facebook has allegedly acquired Chainspace, and this was revealed in a report by Cheddar on the 4th of this month.
According to the report by Cheddar, Facebook acquired the small blockchain startup – Chainspace – in an “acquihire,” or acquisition of a firm made basically for the expertise or skills of its employees, instead of the products or service that the firm provides. Four out of the five researchers that worked on the academic whitepaper of Chainspace will be joining Facebook.
The social media giant spokesman told cheddar that while Facebook had hired some of the researchers of the firm, it had not bought any of the firm’s technology. The blockchain startup was founded by researchers from University College London. As per the report, the startup was working on the scalability issues of blockchain, by applying Sharding to smart contracts, according to the website of Chainspace.
While a lot of blockchain proponents praise blockchain technology for its trustless security and capabilities in processing transactions, it is presently not scalable to the level of traditional payment systems such as PayPal and Visa.
Bitcoin (BTC) Price Today – BTC / USD
At the moment, the number of transactions per second on the network of Bitcoin (BTC) is within the range of 2 and 18. Visa is currently capable of processing 2,000 transactions per second while PayPal handles 115 transactions per second. Sharding runs on the parallel processing power of several connected machines that distribute the workload of verifying transactions on the network.
It breaks networks into smaller sections automatically, or shards. Every network runs a smaller-scale consensus protocol. While running in a parallel mode, such a network can process hundreds of transaction in one second per shard, and this would significantly enhance the scalability of blockchain-based processes.
Facebook Started Exploring Blockchain Technology in 2018
In the last quarter of last year, the social media giant added five new blockchain-related jobs on its career page. Some of the blockchain-related jobs listed on the platform include a data scientist post, two software engineer roles, and a data engineer. All of these positions were required at the headquarters of the firm in Menlo Park, California.
Back in May last year, David Marcus – the head of Facebook Messenger, the messaging platform of Facebook – made a very strategic announcement. He announced that the firm had created a group to explore the potentials of blockchain and how best it can be used across Facebook, starting from scratch.
David Marcus was a former board member of Coinbase – one of the top digital currency trading platforms and wallet service in the United States. A lot of firms and industries across the globe have been looking for the best possible ways to leverage this technology and how to tailor it to their needs.
Many believe blockchain technology is only associated with digital currencies, such as Bitcoin (BTC) Ethereum (ETH), and XRP (XRP), but that is not true. Blockchain technology has a lot of applications, most of its applications are even yet to be discovered. It is used in the automobile industry, manufacturing industry, as well as the finance sector, and researchers are still exploring more of its use cases.