Facebook’s “Diem Dolla” test network delivers disappointing results

The dire Testnet results from Facebook’s Diem (formerly Libra) have dampened claims that the digital currency poses a threat to global financial stability. This is the conclusion that can be derived from a Diem Blockchain Explorer update that showed that the network only processes an average of 6 transactions per second (tps) with the highest reported value being 24 tps. So far, the test network for Diem has been running for more than 43 days.

The testnet’s performance shows that much more needs to be done before launching January 2021 (as planned) if the team is still hoping and promoting its stablecoin to outperform existing blockchain networks. The blockchain networks Bitcoin and Ethereum currently provide 4 and 13 tps, respectively. The stablecoin’s early metrics, if not improved, will reduce Diem’s ​​perceived attractiveness and unfounded claims that they pose a threat to the global financial system.

Many central banks and governments around the world expressed concern when Facebook and its partners announced the upcoming launch of Libra in 2019. Since then, a number of central banks immediately began disrupting their ability to launch their own digital currencies in order to thwart Libra. Earlier this month, the association unexpectedly changed its name and brand from Libra to Diem Dolla. Diem means “day” in Latin.

Based on these Testnet results, Diem is currently far behind the payment giant Visa. Visa can process up to 1,700 transactions per second. Visa’s transaction throughput, 70 times higher than Diem’s ​​highest reported tps, exposes unfounded fears, following Libra’s announcement.

Despite the many challenges, the Diem Association is determined to roll out the testnet and bring it into the hands of potential users, customers and companies.

In reality, the Diem Dolla will only be a 1: 1 USD backed coin, contrary to Libra’s ambitions to become a global reserve currency capable of competing with other currencies such as USD, EUR or Japanese yen.

Speaking of Facebook’s ambition to release Libra in 2019, Tencent founder Ma Hoa Dang said, “It’s not about whether you can or not, it’s about whether you can or not,” and it will Reality. when regulations and government barriers killed the Libra in its infancy.

Teacher

According to AZCoin News

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