Earlier in 2018, Facebook made the announcement that they were actively researching and getting to understand the blockchain and cryptocurrency space further. They stated it was new territory, but in a statement from the company’s CEO Mark Zuckerberg, stated that cryptocurrency and decentralized technology as a whole is one of the main feats that the company is looking to pursue. Subsequently, job hires, rumors, and all the like began to pop up, and job opening for blockchain developers and software engineers began making their way to light as well. Now, months after the initial announcements and the continued secrecy within the company, the secret Facebook division has made its first acquisition of the company “Chainspace”, a smart contract development firm focused on creating virtual agreements in the form of contracts on various blockchains.
Acquiring Chainspace: What it Means for Facebook
In the actual acquisition of the company, Chainspace has noted that they are very excited to be a new part of the Facebook team. The acquisition took place in a “hiring” sort of fashion; a form of acquisition where a company’s majority workforce is hired by the acquiring party. The firm stated in a press release on its website that it will be shutting down, however, the project’s core and initiative still remains, as the 4 of the 5 researchers/developers that created the main white paper behind Chainspace have now redeclared their positions at Facebook’s firm.
For Facebook, this is a very promising first step. Since their initial announcements of kickstarting the program and starting to branch out for talent around the world, they’ve been pretty quiet in the sector. This will be their first announcement that truly encompasses their potential actions in the space. While the previous team leads stated a stablecoin-like project was in the works, this neither propels that assumption or stifles. The Chainspace acquisition is important for Facebook, as the majority of their engineers are workers in static software engineer but aren’t entirely accustomed to the traditional works of blockchain development.
The Future of Facebook Running a Distributed Ledger
The main hypothesis with employing an entirely new development team focused on blockchain technology and now acquiring an entire company focused on developing smart contracts is that Facebook is creating their own distributed ledger form of technology (DLT); what this means is that the social media giant is looking to cut costs, possibly store data across a blockchain in fragments for further security, and much more.
This doesn’t necessarily confirm or further support a “Facebook Cryptocurrency” that you can buy and can potentially increase in value. It does, however, add an even further heavier weight to the ideology that Facebook understands the importance of blockchain technology and is actively looking to work with it.