Social media large Facebook has made its first acquisition within the blockchain area by buying Chainspace, as per a Cheddar report.
Founded by researchers from the University College London, Chainspace is a small blockchain startup creating a decentralized good contract platform. Its objective is to make the system scalable overcoming the current constraints of the blockchain expertise.
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According to Cheddar, the acquisition was made to poach the expertise on the blockchain startup – a quite common apply generally known as acqui-hire within the Silicon Valley. Four out of 5 researchers of Chainspace’s whitepaper are becoming a member of Facebook, claims the enterprise media outlet.
A Facebook spokesperson confirmed that the most recent hiring of the social media agency to strengthen its blockchain workforce and revealed that the acquisition wouldn’t switch any expertise of Chainspace to Facebook.
“Like many different firms, Facebook is exploring methods to leverage the facility of blockchain expertise. This new small workforce is exploring many alternative functions. We don’t have something additional to share,” the spokesperson advised Cheddar.
Like a lot of the blockchain companies, Chainspace additionally attracted the eye of many buyers as its early backers embrace VCs like Leniscap and MW Partners. The agency is within the strategy of elevating an preliminary spherical of funding of lower than $four million.
Facebook Ramping Up Its Blockchain Efforts
This will not be a sudden transfer by Facebook to leap into the blockchain area as the corporate was already within the strategy of strengthening its blockchain workforce by hiring teachers, product managers, engineers, and authorized specialists with expertise in cryptocurrencies and blockchain expertise.
Last yr, Finance Magnates reported that Facebook is planning to develop a cryptocurrency for its extensively used messaging platform Whatsapp.