Facebook’s crypto experiment: partnership with Pontem and Polkadot to develop the Diem blockchain
- Facebook’s crypto experiment is in full swing after partnering with Pontem and Polkadot.
- This arrangement will be a test hub for developers prior to deployment on Facebook’s Diem blockchain.
- This ambitious project has raised over $ 4 million from funds such as Mechanism Capital and Kenetic Capital.
- The success of this experiment will have the potential to introduce Facebook’s over 2 billion users to the DeFi ecosystem.
What is Diem?
Diem is a blockchain-based payment platform from social media giant Facebook (NASDAQ :), Inc. Formerly known as Libra, the project’s goal is to build a “trustworthy and innovative financial network” and includes extensive plans to launch a stablecoin .
Diem launched its Testnet in January and surpassed 50 million transactions in less than a month, which analysts cite as evidence of future mainstream adoption.
Facebook, the world’s largest social network, is making advances in blockchain technology with its Diem Network. The latest development is the partnership with Pontem and a Polkadot node infrastructure provider. Pinknode will turn Pontem into an “experimental network for Diem”.
The project has already generated interest with $ 4.5 million from venture capital funds. Barely a month after its launch, Facebook’s Diem testnet surpassed 50 million transactions amid fierce regulatory opposition.
Ballet of Pontem and Polkadot
Pontem has formed an innovative partnership with Pinknode, a polkadot-based service providing node infrastructure to set up an experimental test network for Facebook’s Diem blockchain.
Under the agreement, Pinknode will act as the main infrastructure provider for the project to leverage the “reliable and secure API endpoints”. According to Boris Povod, the founder of Pontem, the partnership will not only serve as an experimental network for Diem, but also improve Polkadot’s infrastructure.
Given the fundamental nature of Diem as a permit, public participation in the network is limited, which makes building open source projects a challenging task. By taking advantage of the permissionless nature of the Polkadot Network, Pontem offers developers the opportunity to test features before deploying them to Diem.
The myriad of benefits the project brings to the blockchain ecosystem have resulted in it raising $ 4.5 million from investors such as Kenetic Capital, Mechanism Capital, and Animoca Brands.
On the downside
- Diem has received a barrage of regulatory criticism since launching the project with Markus Ferber
- Ferber, who is a member of the European Parliament, has warned that it could be a shadow bank.
- Diem’s testnet only performs an average of six transactions per second, which is much slower than that which can process around 30 transactions per second.
Polkadot is often described as the network that provides true interoperability between blockchains. In addition to its interoperability functionality, it also offers advanced levels of security and scalability that make it ideal for Pontem’s work.
Pinknode’s role in the partnership is the result of the outstanding Node-as-a-Service solutions it offers developers. The superior infrastructural benefit that it offers makes it a central component of the project, as it “will be an important building block”, according to Boris Povod.
Through Polkadot’s enterprise-grade functionalities, Pontem revealed plans to build a bridge that will connect Ethereum to Diem. This unique move will introduce Facebook’s over 2 billion users to the DeFi ecosystem.
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