Home Blockchain News The little-known London startup behind Facebook’s Libra success

The little-known London startup behind Facebook’s Libra success

by Michael Stark

Facebook’s Acquisition of Chainspace: A Move Aimed at Acquiring Talent

H2: Chainspace’s Innovative Approach Caught Facebook’s Attention

Lior Messika, an early investor in Chainspace with his VC company Eden Block, described the acquisition as a move to secure the valuable talent at Chainspace rather than aimed at the individual technologies they developed. Chainspace’s team members were known for their valuable and relatively rare profiles, combining blockchain-developing experience with strong academic backgrounds.

H2: Creating Scalable Systems for Facebook’s Cryptocurrency

Facebook’s interest in Chainspace’s team members is evident in their detailed plan for the Libra coin cryptocurrency, which was published just six months after the Chainspace buyout. The Chainspace team members were listed as coauthors of the main technical white paper and other key documents for Libra coin. However, the Chainspace technology itself was not included in the Libra coin’s blueprint.

H2: The Consistency of Libra Coin with Chainspace Technology

Chainspace’s technology was expected to be absent from Libra’s blueprint, as the two platforms focused on different models. Chainspace had developed technology for decentralized, leaderless blockchain systems, while Libra has been described as a centralized, managed project. This inconsistency is consistent with the current state of Libra coin’s development.

H3: The Future of Chainspace Technology

Facebook’s ambition is to open up the membership of Libra coin’s validators over the next five years. There is hope that Chainspace’s pro-privacy and pro-decentralization tools could be introduced at that stage, but it is far from guaranteed. Despite Facebook’s plans, US regulators have urged them to stop developing Libra while they investigate its potential impact.

H2: The Legacy of Chainspace in Nym Technologies

Some elements of Chainspace technology are living on in another startup called Nym Technologies. The company is building on the Coconut privacy protocol to create a blockchain-powered platform for anonymous cryptocurrency payments, messaging and web navigation. This project aims to carry on the legacy of Chainspace’s work on privacy, as noted by Nym Technologies CEO, Harry Halpin.

In conclusion, Facebook’s acquisition of Chainspace was primarily aimed at acquiring valuable talent rather than acquiring the technology itself. The future impact of Chainspace’s technology on Facebook’s Libra project remains uncertain. Nevertheless, the legacy of Chainspace continues to be carried on through innovative initiatives like Nym Technologies, emphasizing the ongoing influence and relevance of Chainspace’s work in the blockchain industry.

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