2021 will be an important year for the blockchain world as more projects such as non-financial tokens (NFTs) and decentralized central financial exchanges (CeDeFis) enter the central stage. Facebook’s weight also takes center stage.
Not so long ago, the media was full of news that the largest social network in the world was developing plans to create a global digital currency. So, after a while, it seemed that Facebook was delaying plans in this regard. Disagreements with regulators around the world have delayed and altered Facebook’s plans a bit. Rather than back down, Facebook decided to strategize and launch a “different” global digital currency later in 2021, after reallocating the project to Diem.
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It is different in the sense that they changed their name and management. However, the Libra Association, later renamed Diem Association in December 2020, will run the project.
What is Facebook Diem?
Facebook Diem – An unlicensed payment system based on blockchain technology will be launched soon. The system will have a stablecoin called Diem and operate on the blockchain network.
Although Facebook has proposed the project, the Deem Association will oversee the entire project to ensure transparency. Diem is an alliance of companies from various sectors of the economy, including technology, fintech, telecommunications, venture capital, and non-profit organizations.
The first currency, Libra, was not as decentralized as Diem. While the goal is not to obtain a license, Dim is currently planning to use the approved blockchain. Thus, only members of the Deem Association can conduct transactions with it.
However, the development team has not yet come up with a reliable solution that can handle the unauthorized transactions of billions of potential users. Enthusiasts hope that the situation will change after the development of the project.
Ultimately, Diem’s ultimate goal is to help the world access financial services faster and easier. The Diem project will be supported by the US dollar, the euro, the British pound and other official currencies. If the project is approved by US regulators, Diem will operate as a full-fledged central bank powered by blockchain technology. As you probably know, this is nothing more than Bitcoin (BTC) and others.
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Components of the new global digital currency for Facebook
Facebook’s new global digital currency aims to revolutionize the global payment system. Thus, the Facebook Diem project consists of three unique parts that work concurrently to create an inclusive and secure financial system. They include:
Solid foundation for blockchain technology
The new cryptocurrency component Facebook Diem is a blockchain infrastructure with reliable scalability and security that serves as the technological backbone of the payment system.
Dima source code is publicly available on Github. The source code written in Rust is available to everyone.
This provides scalability and helps the infrastructure to accommodate more projects. Deem is also developing a new programming language, Move, for creating smart contracts and executing single transactions.
2. A new digital wallet.
While creating a digital portfolio after well-known training exercises is quite simple, Novi is a complex portfolio that takes time and attention that you can afford. One of Facebook’s many companies, Novi Financial, is developing a digital wallet for Project Diem. Until the end of 2020, the wallet was called Calibra.
Novi is a standalone app that we expect will support integration with WhatsApp, Messenger, Instagram and possibly some other platforms. The ease of use is really impressive.
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Diem is a critical component of Facebook’s new global digital currency project. It heavily supports Diem’s reserves, which include cash or cash equivalents.
There are also short-term government securities. Thus, Diem is a stable currency. According to the development team, a coin like Bitcoin and a number of others cannot be hacked. In the early stages, only DEM members can process transactions. However, Dim plans to transition to a flawless system within the first five years after launch.
core values that add to the uniqueness of the design as everyone prepares for its launch in late 2021: