An introduction to the Diem Blockchain.
An introduction to the Diem Blockchain.
The Association is an independent membership organization headquartered in Geneva, Switzerland.
The Association’s purpose is to coordinate and provide a framework of governance decision-making for the Diem network and Diem Reserve; oversee the operation and evolution of the Diem payment system; facilitate the provision of services on top of the Diem Blockchain in a safe and compliant manner; and establish social impact grant-making in support of financial inclusion.
The Association is governed by the Diem Association Council, which is comprised of one representative per Association Member. Each Council representative is entitled to one vote on each matter brought to the Council for approval. Together, they make policy decisions on the governance of the Diem network, the Diem payment system, and the Diem Reserve.
The Diem payment system incorporates three aspects that work together to create a more inclusive financial system: 1) A secure, scalable, and reliable blockchain as the technological backbone of the payment system; 2) Diem Coins that are backed by a reserve of assets made up of cash or cash equivalents and very short-term government securities; and 3) Governance by the independent Diem Association and its subsidiary Diem Networks, tasked with developing and operating the payment system.
Safety and security are the Diem Association’s highest priorities. Our goal is to develop a system designed to ensure compliance with applicable laws and regulations while supporting our objectives of openness and financial inclusion. Integrated safeguards enable people and businesses to trust the security and integrity of the Diem payment system.
Because it is intended to address a global audience, the software that implements the Diem Blockchain is open source — designed so that anyone can build on it and billions of people can depend on it for their financial needs. We believe this is an important way to help lower barriers to entry and encourage interoperability and competition to facilitate frictionless payments for more people.
Blockchain is a technology that can safely store transaction records on a peer-to-peer network instead of storing them in a single location. Independent servers around the world, called nodes, make up the network that operates the blockchain.
Diem Coins are single-currency stablecoins (e.g., ≋USD, ≋EUR, and ≋GBP) and a multi-currency coin (≋XDM) supported on the Diem payment system.
A Diem single-currency stablecoin is a digital asset that has a specific face value in one fiat currency. Diem single-currency stablecoins will be fully backed by the Diem Reserve, which will consist of cash or cash equivalents and very short-term government securities denominated in the same currency as the stablecoins.
≋XDM is a digital composite of some of the single-currency stablecoins available on the Diem network and can be used as an efficient cross-border settlement coin as well as a neutral, low-volatility option for people and businesses in countries that do not have a single-currency stablecoin on the network yet.
Not yet! Over the coming months, the Association will be working to develop and grow the Diem payment system.
We expect most users will be able to buy Diem Coins through exchanges that list Diem Coins or through the applications that will be built on the Diem Blockchain, including digital wallets and other financial products and services.
Diem Coin holders can use Diem Coins for everyday use to purchase goods and services, transfer Diem Coins to other users, or convert the Diem Coins into local currency.
We expect that the use of Diem Coins will be permissible in all countries where the use of virtual currency is allowed, although certain business activities and transactions involving Diem Coins may be subject to regulation.
The Diem Reserve is administered to preserve the value of Diem Coins over time. The Reserve will hold, in cash or cash equivalents and very short-term government securities, an amount at least equal to the face value of each Diem Coin in circulation.
If you believe in what the Diem network could do for billions of people around the world, share your perspective, and join in. Your feedback is needed to make financial inclusion a reality for people everywhere.
If you are a researcher or protocol developer, a preview of the testnet is available under the Apache 2.0 Open Source License, with accompanying documentation. The testnet is still a prototype under development, but you can read, build, and provide feedback right away.