There is a common saying that goes back for centuries, and it’s the following: “Actions speak louder than words”. It is often attributed to Abraham Lincoln, one of the most celebrated figures in United States history. Regardless, the idea is that one should watch the actions of a certain individual or organization to truly figure out where they are going.
While Mark Zuckerberg, the CEO of Facebook, has spoken about decentralization before, he hasn’t been extremely vocal about blockchain, especially compared to others in the tech sector. Regardless, it appears as though Facebook, one of the most popular social networks in the world, has just acquired blockchain startup Chainspace.
There are many reasons for a company to purchase another company. For example, one company might purchase a startup quickly because it understands that the startup has the potential to one day be meaningful competition. There are also reasons to purchase a company such as for its intellectual property, management, consumer base, and other reasons.
In this particular situation, Facebook apparently purchased the company because of the startup members, in what is traditionally known as an “acqui-hire”. The Chainspace website even slyly refers to the move, stating that they are “moving on to something new”.
For those curious as to what exactly Chainspace was attempting to accomplish, it describes itself as a “planetary scale smart contracts platform”. It is clear that the startup was dedicated to speeding up the amount of transactions possible with blockchain technology.
Considering the fact that Facebook has already reportedly been developing a stablecoin to introduce on Whatsapp (which it also acquired years ago), it makes sense that the company might want to hire the team, which might be more familiar with blockchain than others. The team is reportedly joining Facebook’s blockchain division, which is led by David Marcus, previously associated with both Facebook and Paypal.