U.S. Markets closed
  • S&P 500

    -31.14 (-0.72%)
  • Dow 30

    -171.29 (-0.50%)
  • Nasdaq

    -164.43 (-1.25%)
  • Russell 2000

    -31.31 (-1.55%)
  • Crude Oil

    +1.09 (+1.26%)
  • Gold

    -10.30 (-0.58%)
  • Silver

    -0.30 (-1.52%)

    +0.0012 (+0.1222%)
  • 10-Yr Bond

    +0.0690 (+2.44%)
  • Vix

    +0.36 (+1.83%)

    -0.0043 (-0.3543%)

    +0.7920 (+0.5901%)

    -672.86 (-2.81%)
  • CMC Crypto 200

    -18.17 (-3.17%)
  • FTSE 100

    -20.31 (-0.27%)
  • Nikkei 225

    +353.86 (+1.23%)

Polkadot Ecosystem Eyeing Facebook’s Blockchain Project

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Diem Association, the rebranded Libra cryptocurrency project co-founded by Facebook (FB), is preparing to launch a blockchain and accompanying stablecoin in the U.S. later this year.

Diem is a blockchain-based payment system that aims to become the primary payment service supporting Facebook and its ecosystem of products. Besides acting as the name for the network, Diem will also serve as the network’s native cryptocurrency, helping connect consumers and businesses within the Facebook economy.

Based on the network’s new coding language, titled “Move,” Diem eventually intends to roll out the network beyond U.S. borders. In the meantime, because Diem still isn’t live and hasn’t announced a launch date, developers eager to construct applications for the network that will appeal to Facebook’s 2.7 billion users must start building and testing ideas elsewhere.

Unlike permissionless blockchains like Bitcoin and Ethereum, where anyone can freely participate and build, Diem is a permissioned blockchain, meaning that anyone who wants to participate requires the network’s approval first. (See Bitcoin Stock Comparison on TipRanks)

The Diem Experimentation Environment

To help developers gain access to the Move language and begin building applications, Pontem Network, a decentralized application (dApp) framework built on Polkadot, has developed an experimental test environment.

Pontem will play a role as the ‘permissionless version’ of the ‘private' Diem Blockchain, helping introduce Diem’s native Move language to a broader audience. Put simply, Pontem provides a bridge between the permissioned Diem network and other permissionless, decentralized blockchains.

Meanwhile, Pontem has partnered with Pinknode, another Polkadot-based service provider, to help scale this test network’s abilities even further. Together, this freshly announced partnership will offer application developers more flexibility and freedom to customize their beta products and test market acceptance.

After thorough testing and development in Pontem, applications built in this experimental environment can be migrated directly to the Diem blockchain, thanks to the cross-compatibility Pontem delivers to both networks.

Keeping a Focus on Compatibility

Both Pinknode and Pontem offer solutions to improve Polkadot's existing infrastructure, which will help expand the ecosystem and enable more developers to leverage the suite of tools and features.

As Pontem continues to add more features to its “Polkadot-based alternative” to Facebook’s Diem, Pinknode will play the role of providing secure, scalable, and reliable infrastructure solutions to support developers further.

By integrating Pinknode into its infrastructure, Pontem is cementing itself as the R&D hub for Diem, allowing developers to build, test, and deploy decentralized applications using public blockchains first.

Furthermore, it will lay the groundwork for numerous other applications to join the network, introducing Diem’s (and Facebook’s) users to decentralized finance (DeFi) and non-fungible tokens (NFTs), among other potential use cases.

Disclosure: Reuben Jackson held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.