Ethereum Cofounder, Mihai Alisie has expressed his concerns about the idea of Facebook Libra project’s possibility of disrupting the blockchain’s privacy.
Alisei maintained that the blockchain technology was supposed to render a decentralized trustless peer-to-peer system of exchange between users which enables privacy of gains. According to Alisei,
Regulated blockchain projects like Libra would subject blockchain users under the watch and scrutiny of financial regulators. This would totally erode the privacy expected of the blockchain.
Facebook Libra caused quite a stir since its official announcement. Facebook and it’s Libra team came under several attacks and oppositions which served as a major resistance to the project’s development. Earlier this month, Maxine Waters and other top members of the House Financial Service Committee asked Facebook to halt the development of Libra until the further regulatory investigation was concluded.
Based on these circumstances, Facebook’s Boss; Mark Zuckerberg and his Libra team would attend a Senate hearing next week. The head of Facebook’s Libra project, David Marcus, promised to answer all legislators’ “important questions”.
Although Libra fell on rocky waters in some countries like India, Iran, and China, it has also become immensely popular among crypto enthusiasts who believe widely in the project.
The more Libra’s popularity grows, the more likely it becomes of it to be heavily regulated, thereby subjecting its blockchain privacy to the set of regulations under which the present financial system and banking are run.
Distributed networks are simply decentralized and exists over a P2P design. Corporate control goes against the ethos of distributed networks. There is no much decentralization, privacy, and anonymity. Libra would achieve a hybrid- something partially decentralized which would retain some of the qualities of the present banking system or financial service agencies.