Facebook's Diem (formerly Libra) testnet is now live for more than 43 days at the time of publication. The latest update from blockchain explorer reveals that the network can only process an average of six transactions per second (tps). The testnet’s highest transaction speed was recorded at 24 transactions per second (tps). Facebook's stablecoin needs to boost up its performance speed before its much-anticipated launch in 2021.
While Bitcoin transaction stands at 4 tps, Ethereum has a transaction speed of about 13 tps. Meanwhile, payment service VISA can process a transaction speed of about 1,700 transactions per second.
Even with the media coverage and expectations of the stablecoin towards global financial domination, Diem had performed quite poorly in comparison to Visa executing 1,700 transactions per second. In fact, Visa’s transaction is 70 times more than Diem’s highest reported tps.
The testnet will be looking to boost up its and evaluate the performance of the network. The top addresses contain 9.1 trillion LBR units with the testnet running close to 10 trillion tokens in 31,184 addresses.
Despite the various challenges, the Diem Association indicated on launching the testnet into the hands of potential companies, users, and customers. Reportedly, the stablecoin is set for a January 2021 launch backed by the U.S. dollar. However, the dates of the public launch are still unclear.
Lawmakers around the world expressed concerns when Facebook had announced launching its Libra stablecoin back in 2019. Some of the central banks even took upon launching its own central bank digital currency to counter Libra.
Since then, the firm had changed its stablecoin name and branding from Libra to the Diem dollar in order to distance itself from Facebook.
If the performance of the Diem stablecoin is not improved, the unsubstantial claims that the stablecoin is a threat to the global financial system will prove to be completely baseless.