The Chainspace team
Facebook makes a big secret move to venture into the blockchain industry in a big way, according to the source. The social media mogul has made an advance in its blockchain effort by hiring members of the team of researchers behind the blockchain platform Chainspace.
According to the same source, four of the five key members of the team were hired by Facebook to work on the blockchain project for the company, specializing in contracts, as well as facilitating payments.
By the financial media Cheddar, one spokesperson of Facebook confirmed the hiring of the small blockchain company called Chainspace and its stuff but also claimed none of its technology was adopted by Facebook.
In Silicon Valley, the move is referred to as acqui-hire, and according to the report, four of the five researchers who stand behind the academic white paper of Chainspace are joining the social media giant. S
Several sources close to the matter have told Cheddar that the startup is going to shut down as Facebook hired most of its employees from currently. The spokesperson confirmed the move, just like we mentioned before.
He also stated that like a lot of other companies, Facebook explores new ways of leveraging the power of blockchain technology. The new small team is investigating a lot of different applications, and they don’t have anything further to share about this.
It is not clear why Facebook hired Chainspace’s stuff
Last year in May, it had been reported that Facebook works on creating its own crypto, to permit its billions of users to make electronic payments. However, later in December the same year, it was revealed that Facebook works on launching a stablecoin pegged to the US dollar, which will work on Whatsapp and allow its users to transfer money.
However, it is still not clear why the company hires Chainspace staff at this time, because they were working on an effective distribution platform for making transparent, as well as fast transactions such as smart contracts on the blockchain and also exploring other applications of blockchain like polling.
Chainspace has also specialized in building decentralized smart contracts systems that could also facilitate payments and other services which use the blockchain-based technology.
Facebook tries to move with the trends
Facebook expanded its scope first by acquiring Whatsapp, and it is now trying to move with the trends by investing in the blockchain industry as most businesses are now operating on the technology. Some blockchain companies, such as Tron, have set their goals in order to take over the internet from companies such as Facebook, therefore the need to upgrade to stay in business.
The company may also plan to acquire more blockchain companies to expand its already 40-men team of blockchain experts that work on its blockchain section. The report also says that it had talks with a blockchain payments company called Algorand to possibly acquire it, but the deal has been a dead end.
The blockchain industry takes over the whole world in all the sectors worldwide. Therefore, it is no surprise that internet giants such as Facebook are aggressively pursuing technology as what looked like a high technology several years ago is going to be obsolete soon.