Andreessen Horowitz (A16z), a leading venture capital firm operating in the crypto sector, has nabbed two of the leading engineers working on Facebook’s digital currency project for its digital asset fund.
According to a Monday report from CNBC, Nassim Eddequiouaq and Riyaz Faizullabhoy have jumped ship from Facebook to A16z after spending two years working on the social media giant’s Novi digital wallet (formerly Calibra).
Faizullabhoy will serve as the chief technology officer, while Eddequiouaq will take on the role of the chief information security officer at A16z’s crypto division. Faizullabhoy stated:
“Andreessen Horowitz has shown an impressive dedication to advancing the entire crypto ecosystem over the past decade, and we jumped at the chance to join their premier team and provide technical support to their rapidly-expanding portfolio.”
A16z founder Marc Andreessen has sat on Facebook’s board since 2008 — one year prior to the launch of Andreessen Horowitz.
Anthony Albanese, chief operating officer of A16z, described the firm’s new talent as having a greater “opportunity to impact the crypto ecosystem on a very broad scale” through their new roles.
The year 2021 seems to be a big year for the blockchain world as several projects, such as nonfungible tokens (NFTs) and centralized decentralized finance exchanges (CeDeFis), are taking the central stage. Also at the forefront is Facebook’s Libra.
Not too long ago, the media was rife with the news that the world’s largest social media network was developing plans for a global digital currency. Then, after a while, it looked like Facebook shelved plans for it. Disputes with regulators around the globe had a hand in delaying and redirecting Facebook’s plans a bit. Instead of backing out, Facebook decided to strategize and launch a "different" global digital currency later in 2021, after rebranding the project to Diem.
It is different in the sense that they had a change of name and administration. However, the Libra Association, later renamed to Diem Association in December 2020, will manage the project.
What is Facebook Diem?
Facebook Diem is a soon-to-be-launched permissionless payment system based on blockchain technology. The system will have a stablecoin called Diem and run on its blockchain network.
Although Facebook proposed the project, Diem Association will oversee the entire operation of the project for transparency's sake. The Diem Association is a body of companies from different sectors of the economy, including technology, fintech, telecoms, venture capital and nonprofits.
The initial coin, Libra, was not decentralized, and neither is Diem. While the goal is to be permissionless, the current plan is for Diem to run on a permissioned blockchain. Consequently, only members of the Diem Association can run transactions on it.
However, it is so because the development team has not yet developed a robust solution that can handle permissionless transactions for its billions of potential users. Enthusiasts are hopeful this will change as soon as the project develops in the pipeline.
In the long run, the ultimate objective of Diem is to help the world to gain access to financial services easier and faster. The United States dollar, the euro, the British pound, and other major fiat currencies will back up the Diem Project. If the project gets approval from the U.S. regulators, Diem will function as a full-scale central bank that runs on blockchain technology. As you probably know, this is nothing like Bitcoin (BTC) and others.
Following sweeping crackdowns by China against Bitcoin mining activity, the United States has now emerged as the leading nation in terms of hash rate.
CBECI data also shows Kazakhstan (18%) and Russia (11%) as the next major Bitcoin mining centers outside the United States. These three nations have gained significant market share in the wake of China’s crypto mining ban.
Back in June, Cointelegraph reported that BTC.com, one of the largest Chinese Bitcoin miners, was relocating to Kazakhstan.
Perhaps of particular interest is the fact that CBECI data shows a 0% hash rate from China. However, it is possible that covert mining operations are still ongoing despite the ban.
The United States accounting for the greatest share of global hash rate distribution likely completes the expected East−West miner migration following Beijing’s clampdown.
This Daily Dose was brought to you by Cointelegraph.