Facebook, Inc., an American online social media networking company, based in Menlo Park, California, as per a recent press release statement on Feb. 4th, 2019, announced the acquisition of Chainspace. a blockchain startup company, founded by researchers from University College London. This is apparently Facebook’s first blockchain acquisition. As per confirmed reports, Facebook acquired the blockchain startup primarily for its skilled staff and has not acquired any of the startup’s technologies. The acquisition also confirms that four of the total of five researchers working on Chainspace’s academic whitepaper will be joining the social media network.
Chainspace, in its bid to find a solution for blockchain scalability issues, was applying sharding to smart contracts, as per the information available on the startup’s website, the company is apparently working on Sharded Byzantine Atomic Commit (S-BAC) protocol for internet-scale blockchains.
Blockchain tech owing to its security and tamper-proof trustless capabilities is lauded by many great minds, but still, when it comes to processing transactions, the tech is still nowhere closer to the traditional payments systems like Visa or PayPal, in terms of scalability. These traditional payment platforms – Visa at 2000 tps (transactions per second), and PayPal at 115 tps are much ahead of the Bitcoin network tps which fluctuates between 2 and 18.
Sharding, on the other hand, runs parallelly with multiple networked machines. This approach splits up transaction verifications, by automatically dividing networks into shards or smaller sections, with each shard running a smaller-scale S-BAC protocol.