The Ultimate Beginners Guide on Facebook-Backed Cryptocurrency Diem
Everyone knows Facebook but very few know their another dimension in the Crypto Industry. From the year 2018, it started showing its interest in blockchain technology and hired some crypto developers which gives some clues to the world about facebook’s intervention in the crypto industry. Later, they officially released the white paper about their own cryptocurrency named Libra in partnership with Libra Association. The important thing to know here is Facebook does not have full authority over this digital coin, it is one among the partners. This announcement of facebook created huge hype in the crypto industry and Libra became the talk of the town.
Later in 2020, Facebook renamed Libra as Diem and it is expected to launch in the year 2021. Let’s know more about Diem.
What is Diem ?
Diem is a kind of stable coin. The term Diem is derived from the latin word meaning “Day” The ultimate purpose of Diem is to make online payments that run on Diem’s own Diem blockchain which is integrated with a cryptocurrency wallet named NOVI. The Diem blockchain is designed in a way that lets developers build their own apps as in Ethereum blockchain. It is said that Diem has great efficiency and has the capability to handle 1000 transactions per second.
Why is Libra renamed as Diem?
In the month of june 2019, Facebook revealed the project structure of Libra. The Libra Association confirmed that the blockchain is powered by the group of 27 companies including facebook.At the end of the same year, several strong members of the association like Visa, Mastercard, Paypal, eBAy, etc, have left the project. The project has also faced some legal and regulatory issues. Thus the libra association did not launch the coin on the desired date in 2020.
Then in 2020, Libra stood up with the new name Diem. This is not just the matter of a new brand name but also reformation of the new strong team. Many iconic figures from top brands like Microsoft were hired for this project.
The Diem Blockchain
The Diem Blockchain is one of the most prominent factors while talking about facebook currency Diem that is powered by the group of validators. They have responsibilities to confirm the transactions according to the consensus protocol.
Diem has taken necessary requirements to improve the efficiency, security and flexibility of the blockchain that are listed below
1. Programmed Language - Move
Move is the kind of language which is used in the smart contract of Deim blockchain which ensures standard security. Which helps to manage node valitors and payment transfers efficiently
2. Byzantine Fault Tolerant Consensus
Deim is designed with BFT consensus mechanism that has three prominent objectives like better energy efficiency,lower latency and continuous operation
3. Blockchain Data Structure
All the transactions on Facebook Diem blockchain are essential to safeguard using Merkle trees, which are data structures leveraged by different blockchains.This implementation of Merkle tree in Facebook Diem can simplify the work and ensure a unified framework which allows for readability of data for verifying data integrity.
Cryptocurrency Wallet is the important element to store digital currency. For Diem, Facebook built their own digital wallet called Novi. This wallet works like all other crypto wallets with private keys.Novi wallet is designed to be safe and secured, facebook believes that the security layers in the Novi wallet will build trust among its users.
- Any people can use Novi Wallet after account registration
- Novi wallet does not charge anything while transactions
- It has built-in fraud protection which is ultimately safe
- The money received to the novi wallet is automatically converted into Diem currency
- Transactions via novi are happened in the matter of seconds
What can you Do with Diem?
Imagine holding Diem, what are you going to do with it? you have two options
1. Make payments with Diem
Actually, the ultimate purpose of Diem is to make payments.it makes transactions faster and safer. Diem has unlimited possibilities and use cases but it will depend on the popularity and people’s trust. As it is not only for transactions but also provides an opportunity to invest in it,
Diem will be primarily used in P2P Exchanges between Facebook games, whatsapp and popular e-commerce websites like ebay, uber, spotify will be all set to accept Diem
How does Diem Payment Work?
The payment system provides support for single-currency stablecoins and multi-currency stable coins for international payments so that Diem coins will be acceptable all over the globe. The payment system provides support for single-currency stablecoins and multi-currency stable coins for international payments so that Diem coin will be acceptable all over the globe. All transactions are validated and stored in the Deim Blockchain. Unlike other cryptocurrencies, Diem Transactions will be reviewed and controlled by the entity named Diem Association which is a group of 27 big tech companies.
Facebook Cryptocurrency Diem Release Date
The exact date has not been officially disclosed anywhere, but the cryptocurrency is expected to release in early 2021.
Will Diem Succeed ?
Diem has been facing many criticisms from the first day. The design and function of diem is no more different than any blockchain projects but we could also Consider Facebook, the powerful brand already has many millions of active users.
However, hope that it will bring the new dimension in payment methods
Let us wait for renovation in digital payments!