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Facebook takes another step towards the blockchain industry, acquires startup Chainspace

Is-Facebook-Finally-Diving-into-Cryptocurrency

It seems that Facebook is thinking seriously about its options to join the cryptocurrency space as financial media Cheddar reports that social media giant just acquired a blockchain startup knowns as Chainspace. This follows a related report in December 2018 wherein the social networking site is working on a stable coin that will be implemented on WhatsApp to allow users to transfer money. Facebook kept mum about this report though until now. For this recent acquisition, the report said that Facebook does not really bought the company itself but opted to hire the team behind Chainspace. The startup was founded by researchers from University College London and its major objective was to build a decentralised “smart contracts” system that will facilitate payments and other services through blockchain and its underlying technology.

Additionally, Chainspace also aims to establish a “distributed ledger platform for high-integrity and transparent processing of transactions within a decentralised system.” To put it simply, Chainspace will speed transactions through blockchain technology aside from other areas that blockchain and decentralisation can be applied to.

The Chainspace website was also recently updated to announce that the Chainspace team is moving on to something different. The report also said that a Facebook spokesperson has confirmed that acquisition or the hiring of the five Chainspace employees.

“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.”

As in all other major acquisitions such as this one, the most important thing to find out is how much Facebook spent for the acquisition. But since this is not your normal acquisition of an existing firm but rather an “acqui-hire” as what it is known in Silicon Valley, there’s no way of finding out how much Facebook has offered to the employees.

Still, the fact remains, Facebook is gradually laying the ground work for its entry into the blockchain industry.

About Arnold Zafra

Arnold Zafra is a freelance tech blogger from the Philippines who is enthusiastic about cryptocurrency, decentralised apps and other emerging developments in the tech industry.

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