Social media behemoth Facebook with a 2.5 billion monthly active user base (1/3rd of the world population) has announced it plans to roll out its cryptocurrency in the second half of 2021. Initially, the project was named Libra started on 18th June 2019 with multiple big players such as PayPal, eBay, Visa, and MasterCard.
However, the project landed into myriads of controversies and concerns from central bankers as well as world leaders like financial stability, a breeding ground for money laundering, and privatization of the money. In addition to this, high-end payment organizations exited the Libra consortium, due to regulatory obstructions.
Since then, the ambitious project has undergone a plethora of changes. Libra is now renamed as – “Diem“, which means “day” in the Latin language. The renaming of facebook cryptocurrency is done with a hope to overcome the regulator’s concerns along with setting foot in the emerging virtual currency.
Let us peep into some groundbreaking deets in connection with Facebook cryptocurrency Diem.
What is Diem?
What was originally initiated by the conglomerate label moniker as Facebook, Diem is now under the complete jurisdiction of an independent body in the shape of Diem association. The launch of this project was primarily propelled with a motive to allow universal access to financial services.
Additionally, what makes Diem a quite secure, scalable, and reliable network is the very fact that it is developed on the most authentic technology of this current era-Blockchain! Being open to all, it has the potential to serve millions of people around the globe.
Moving further; Blockchain technology is acclaimed to furnish a decentralized, fortified and transparent database ledger for verifying transactions. To further enhance this technology, Diem is thought to have built an open-source prototype entitled by the name Diem core.
How Diem Is Connected to Facebook?
Diem is a project started by visionary Mark Zuckerberg with a mission of empowering 1.7 billion users without a bank account to do financial transactions globally. Plus, the project was earlier overseen by the Libra association. However, due to regulatory backfire the group name was rebranded.
With that being said, The Libra association will now be acknowledged as the Diem association. And Silicon Valley giant Facebook is a member of the Diem association just like other 26 member organizations. To add, the Diem association will work independently from Facebook.
Furthermore, the Diem association is proposing to launch a stablecoin – a virtual currency pegged by the US dollar. Simply put, 1 Diem coin is equivalent to 1 US Dollar. The coin can be used to exchange goods and services in the real world.
Along with this, the Diem association is responsible to fortify that the Diem dollar maintains its US dollar value.
Also worth noting, Diem coins just like other virtual currencies are processed and stored in a digital wallet. To add, Facebook is renaming its digital wallet from Calibra to Novi. Similar to the Bitcoin wallet, the Facebook-backed Novi wallet is built on blockchain technology that will act as the digital wallet for Diem dollars.
What’s more, the Novi wallet is a secure, safe, and easy-to-use platform to transfer and receive money as well as to keep Diem coins.
So, does this mean Diem is independent of Facebook? Perhaps the answer is no! Without Facebook, Diem would have been just like any other dollar-pegged stablecoin in the overcrowded crypto marketplace, where Tether is the king in stablecoin. Thereupon, can say the Diem and the Facebook collaboration is interesting among billion Facebook users if only 1/10 of their users choose to use Diem, the cryptocurrency would rapidly become the top virtual currency to invest in!
What’s the future of Diem transactions?
Since it hasn’t practically hit the roads, as of now one can only foresee its future. But if you take the words of most aficionados, they sense Diem to make history in the coming days when it will supersede all other cryptocurrencies. Albeit, virtual currency has been seen existing for a while now; however, many people are brimmed with a train of thoughts that it is meant only for financial, tech-savvy experts.
Such a notion is likely to vanquish with the emergence of Diem that is on the cards to be launched pretty soon. With congregating subscribers associated with Facebook, Whatsapp, and Instagram, the momentous social media company touts its rich user base of over 2.8 million.
Throwing some extra illumination; when Diem officially rolls out in the market, users will be privileged to make transactions via the mode of Novi wallet. The most intriguing part about this particular cryptocurrency lies in the fact that it is simple to comprehend, which is likely to lure smorgasbords of population.
What’s more about Diem?
For your enlightenment; Diem is incessantly undergoing rapid testing. During its “testnet” phase (according to crypto industry language) its number of transactions surpassed the figure of 50 million transactions. Indisputably, that’s quite a number! The intent of such testing allows the professionals to envision any sort of flaws with the current system and eventually to work upon them. When consistent things would be accomplished by the developers ditching blemishes, the Diem platform could be thrown open to the public.
How many diem transactions per second in testnet?
Per data, a throughput of over 3 transactions (approx.) could be processed in a second. This may give an impression of being brisk; however, retards significantly when compared with its other counterparts like Bitcoin (4.6 tps) and Ethereum (15 tps). Plus, Diem seems to be a no match to Solana that is acclaimed to carry out almost 6500 tps. However, it is opined that Diem won’t be able to contest anywhere near capacity.
What’s holding back Diem?
Diem is almost in its final stages before an official launch. All eyes are set on the Swiss Financial Market Supervisory Authority (FINMA) to give its final nod to the project. Most perhaps, Diem will be up for grabs for public access in a very short while this year only. Rest assured, when it is finally approved, this project is likely to bestow a catalyst fostering more and more individuals in adopting the cryptocurrency approach.
No matter! It’s “Libra”, “Diem”, or “Zuck-Bucks”, the idea behind this revolutionary proposed digital currency is to make Facebook Diem cryptocurrency accessible to the global community at low cost.
The cryptocurrency landscape will surely witness amendments with Diem’s entry into the market- a new financial system for the global economy is on its way!