Facebook, the social media network giant, has reportedly acquired Chainspace, a small blockchain startup founded initially by researchers from the University of College London. The startup was building decentralized smart contracts systems that could undergo payment and other services by using their blockchain network. It’s big news for the social media networking giant, as it’s the first blockchain-related acquisition for Facebook.
In this circumstance, Facebook is acquiring the Chainspace team, but not Chainspace’s technology according to a spokesperson. “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.” It’s unclear how much Facebook paid to acquire Chainspace. Chainspace was, however, in the process of raising $4 million. Lemniscap and MW Partners were early backers of Chainspace.
So Facebook’s decision to acqui-hire (so acquire and then hire the employees within Chainspace), very much falls in life with Silicon Valley’s culture of growing quick and fast. Instead of hiring many talented individuals, many companies in Silicon Valley would purchase the startup, to gain access to a large number of talented individuals, which helps the larger company grow significantly quickly. While, according to people familiar with the matter, only four of the five researchers will be joining the Facebook Group, it’s a strong sign to show that Facebook is keen to be a big player in the blockchain industry.
In fact, Alberto Sonnino and George Danezis, two of the authors of the CHainspace whitepaper, have already listed their employment status as a blockchain researcher at Facebook’s London Office on their personal Linkedin Page.
So what are your thoughts on this situation guys?
Do you think Facebook is going to come out on top in the blockchain space?
Or do you think blockchain technology could one day topple the social media giant?
Let me know what you guys think in the comments below.
It’s Cindy with CryptoPIg Catch you guys around!
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