Facebook Acquires ChainSpace and Libra Coin Cryptocurrency
ChainSpace Caught the Eye of Facebook
Lior Messika, an early investor in ChainSpace with his VC company Eden Block, acknowledges the real potential of ChainSpace as one of the first serious implementations of state sharding across a trustless network. He was impressed by their pioneering approach and solid plans for implementation. Even Decode, an EU initiative aimed at increasing European citizens’ control over their personal data, partly supported ChainSpace’s open-source research.
Ironically, Facebook, an EU-fined data-guzzling monopoly, was intrigued by ChainSpace’s work on decentralization and privacy. According to sources familiar with the blockchain industry, Facebook’s move was an “acqui-hire” – an acquisition driven by a desire to snap up ChainSpace’s staff. The startup’s team members had valuable and relatively rare profiles, combining blockchain-developing experience with a solid academic background. This expertise would be useful for a company eager to launch a cryptocurrency coin geared towards 2.3 billion users across the planet.
Libra Coin and ChainSpace’s Expertise
Less than six months after the ChainSpace buyout, Facebook published its detailed plan for the Libra coin cryptocurrency. The ChainSpace bunch – George Danezis, Shehar Bano, Alberto Sonnino – were all listed as coauthors of the main technical white paper and of other key documents. However, ChainSpace’s technology was notably absent from Libra’s blueprint. Facebook intended to process Libra transactions through a group of “validators,” which led to skepticism in the industry about Libra’s decentralization. US regulators have already urged Facebook to stop developing Libra while they investigate its potential impact.
The Aftermath of ChainSpace
Some elements of ChainSpace technology are living on in another startup called Nym Technologies. This company is building on the Coconut privacy protocol to create a “mix network” – a blockchain-powered platform for anonymous cryptocurrency payments, messaging, and web navigation. Nym Technologies CEO Harry Halpin expressed that they are still committed to carrying on the legacy of ChainSpace’s work on privacy.
Even though Facebook decided not to leverage ChainSpace technology for Libra, the impact of the company and its team is evident in the continued development of blockchain and privacy-focused technologies. As Nym Technologies carries on the legacy of ChainSpace’s work, it’s clear that the influence of ChainSpace will continue to be felt in the industry for years to come.
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