Stripe is Building a New Blockchain: Tempo
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Fintech giant Stripe is quietly developing a new blockchain, dubbed “Tempo,” according to a recent job posting discovered on the Blockchain Association’s website. The advertisement,dated August 3rd,describes Tempo as a “high-performance,payments-focused blockchain.”
Tempo: Key Details
The job posting, which has since been removed following inquiries from Fortune, reveals several key aspects of the project:
- Stealth Mode: Tempo is currently in stealth mode, indicating early stages of development.
- Small Team: A dedicated team of just five individuals is currently working on the project.
- Strategic Partnership: The blockchain is being built in collaboration with Paradigm, a prominent crypto venture capital firm. Matt Huang, cofounder and managing partner of Paradigm, also sits on Stripe’s board.
- Target Audience: The marketing role specifically seeks experience targeting a Fortune 500 audience, suggesting a focus on enterprise adoption.
Technical Specifications
Sources familiar with the project, speaking on condition of anonymity, indicate that Tempo is a Layer 1 blockchain – meaning it’s not built on top of existing protocols like Ethereum. However, it is compatible with the coding language used on Ethereum, perhaps easing development and integration for existing Ethereum developers.
This compatibility is a significant detail. Ethereum remains the dominant blockchain for decentralized applications, and compatibility allows developers to leverage existing tools and expertise.
Why is stripe Building a Blockchain?
while Stripe has integrated with various cryptocurrencies and blockchain technologies in the past, building its own blockchain represents a significant strategic shift. The focus on “payments-focused” suggests Stripe aims to address specific limitations of existing blockchains when it comes to processing transactions at scale and reducing costs.
Stripe’s core buisness revolves around simplifying online payments. A dedicated blockchain could allow them to:
- Reduce Transaction Fees: Bypass customary banking infrastructure and associated fees.
- Increase Transaction Speed: Offer faster settlement times compared to traditional payment rails.
- Enhance Control: Gain greater control over the payment process and data.
Company Response
Both Stripe and Paradigm declined to comment on the development of Tempo when contacted by Fortune. The removal of the job posting following the inquiry further confirms the project’s sensitive nature.
Key Takeaways
- Stripe is actively developing a new layer 1 blockchain called Tempo.
- Tempo is designed for payments and aims to improve efficiency and reduce costs.
- The project is a collaboration between Stripe and Paradigm.
- Stripe is targeting enterprise adoption with a focus on Fortune 500 companies.
Looking Ahead: The emergence of Tempo signals a growing trend of established fintech companies exploring blockchain technology to reshape the future of payments. While still in its early stages, Tempo has the potential to disrupt the existing payment landscape if Stripe can successfully leverage its expertise and network to build a robust and scalable blockchain solution.