Facebook’s Crypto Experiment: Partnering With Pontem and Polkadot to Create Diem Blockchain
- Facebook’s crypto experiment is in full swing following the partnership with Pontem and Polkadot.
- This arrangement will be a test hub for developers before deployment to Facebook’s Diem blockchain.
- This ambitious project has raised over $4 million from funds like 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 by social media giant, Facebook, Inc. Formerly known as Libra, the goal of the project is to build a “trusted and innovative financial network” and also includes extensive plans to launch a stablecoin.
Diem launched its testnet in January and surpassed 50 million transactions in under a month which analysts cite as proof of future mainstream adoption.
Facebook, the world’s largest social network is making advancements in blockchain technology with its Diem Network. The latest development is the partnership with Pontem and a Polkadot node infrastructure provider, Pinknode will see Pontem become the “experimentation network for Diem.”
The project has already garnered interest with $4.5 million from venture capitalist funds. Barely a month after its launch, Facebook’s Diem testnet surpassed the 50 million transactions amid stiff regulatory opposition.
Pontem and Polkadot’s Ballet
Pontem has entered into an innovative partnership with Pinknode, a Polkadot-based service that provides node infrastructure to set an experimental test network for Facebook’s Diem blockchain.
The arrangement will see Pinknode serve as the main infrastructure provider for the project as it seeks to leverage on the “reliable and secure API endpoints.” According to Boris Povod, Pontem’s founder, the partnership will not only serve as the experimentation network for Diem but will also improve Polkadot’s infrastructure.
Given Diem’s fundamental nature as being permissioned, public participation is limited on the network, making building open-source projects a challenging task. By leveraging the permissionless nature of Polkadot’s network, Pontem provides developers with a means to test features before deploying them to Diem.
The myriad of benefits the project offers the blockchain ecosystem has seen it raise $4.5 million from investors like Kenetic Capital, Mechanism Capital, and Animoca Brands.
On The Flipside
- Diem has received a barrage of regulatory criticisms since the unveiling of 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 executes an average of six transactions per second which is much slower than Ethereum, which can process around 30 transactions per second.
The Actors
Polkadot is often described as the network that offers true interoperability amongst blockchains. Apart from 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 a result of the stellar node-as-a-service solutions that it offers to developers. The superior infrastructural utility that it offers makes it central to the project as it “will be a key 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 singular move will introduce Facebook’s over 2 billion users to the DeFi ecosystem.
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OhNoCrypto
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, @KhareemSudlow