Facebook has been expressing its ambitions to create a cryptocurrency for several years now. Alongside the main Diem network, Facebook has created Pontem, a sort of test network. According to the latest information, this one will be based on Substrate, the base of the Polkadot network.
Facebook to conquer cryptocurrencies
In early 2019, the giant of GAFAMs, Facebook made official its desire to create a cryptocurrency. Initially named “Libra,” the project met with widespread reluctance from regulators around the world.
Faced with pressure from regulators, Facebook decided to revise its project and took the opportunity to rename it “Diem”, to separate itself from the image that Libra could have had with institutions.
Taking the form of a stablecoin whose value will be based on that of the U.S. dollar, Diem should see the light of day sometime in 2021.
Pontem: the test chain based on Polkadot
In parallel with the Diem network, which will unsurprisingly be a private blockchain, the project teams have developed an alternative network that will act as a test network. Launched in 2020, Pontem is a public and permissionless blockchain, which implies that anyone can use it. Its goal is to allow third-party application developers to test their applications in a Diem-like environment before they are migrated there.
Under the hood, Pontem is a blockchain based on Substrate, the same base that was developed and is used by the Polkadot network. As a reminder, Polkadot is a blockchain infrastructure that aims to foster interconnection between different chains. In fact, it acts as a backbone between the different chains, called parachains, that make up its ecosystem.
An alliance between Pontem and Pinknode
In a note published on July 17 on Pontem’s Medium blog, we learned that the project had partnered with node provider Pinknode.
In effect, Pinknode provides infrastructure for developers, allowing them to build their applications without the need for a node on the network, and all the hardware and maintenance that entails.
“By providing API endpoints through a simplified integration process and maintaining a secure, reliable and scalable node infrastructure, Pinknode helps innovators launch development quickly and accelerate product lifecycles.”Pontem announcement
This partnership will therefore provide developers who want to test their applications, before they are deployed on the Diem network, with a robust infrastructure to connect and interact with the Pontem network.
In addition, because Pontem is developed on the same foundation as Polkadot, Pinknode will allow the networks to interconnect, as the announcement explains:
“In light of our synergies as infrastructure projects on Polkadot, Pinknode fully supports Pontem’s mission to build a bridge to Diem’s permission blockchain and potentially onboard billions of users on the Polkadot ecosystem.”
For its part, the Diem project continues its development across the Atlantic. Recently, the project announced that it has found a bank to hold the funds needed to issue its currency.