Facebook Acquires Blockchain Startup to develop Smart Contracts

February 5, 2019 | AtoZ Markets –Facebook’s cryptographic division, founded last May under the direction of David Marcus, who was serving as the vice president of messaging products and overseeing Facebook Messenger, made their first acquisition, connecting most of the research team to a blockchain startup that specializes in developing smart contracts.

Social media giant explores all aspects of cryptocurrency

Facebook launched its own blockchain division four months after CEO Mark Zuckerberg stated in his post on Facebook that he wants the company to “deepen and explore the positive and negative aspects” of cryptocurrency.  

A year ago Zuckerberg already mentioned Facebook was investing in cryptocurrencies as a form of improving the business. What is known now according to a financial news agency, the social media giant acquired Chainspace, a blockchain firm founded by the researchers from University College London.

Facebook official confirm working with Chainspace

The blockchain startup describes its project as a “global-scale, intelligent contract platform” that uses “a distributed network of blockchains for scalability, speed, and privacy.” A banner at the top of the new Facebook partner’s website states that the team is “moving towards something new. “The code and documentation for Chainspace will continue to be open source, and all previously published research remains available,” says the blockchain startup message.

The representative of Facebook confirmed that the former employees of Chainspace are working in their blockchain division. The social media giant official noted that, like many other companies, Facebook is exploring “ways to use the power of the blockchain technology.” “This new small team is exploring many different applications and we have nothing more to share, ” added Facebook representative.

Former Messenger CEO leads new Facebook initiative

According to the news portal, the University College London researchers startup was acquired and not purchased, meaning that Facebook is more interested in the Chainspace research group than on its technology. According to the U.S. news platform specializing in cryptocurrency news, Facebook has been working on a blockchain and cryptocurrency project for some time.

The company does not know what form this project will take, but sources say that it will most likely take the form of a “stable coin” supported by a decree integrated into the WhatsApp chat platform. The social media giant has already hired blockchain developers, and currently, about 40 employees are working on its cryptographic project. David Marcus, former head of Messenger and former member of the board of directors of Coinbase, heads this initiative.

Think we missed something? Let us know in the comments section below

Share Your Opinion, Write a Comment