Facebook revealed it’s Whitepaper and the associated missions for its new cryptocurrency, Libra. Libra is being designed not only as a means of payment but as a complete Blockchain platform. Ran Neuner, a Crypto-reporter, tweeted,
Just read the Libra stuff. Facebook just went all in on Crypto.
The Blockchain team, under David Marcus, has focused on almost all applications and bottlenecks of existing blockchain projects. In the end, they have created a mixed bag of cryptocurrencies; which challenges the utility and functionality of many existing cryptocurrencies. Mark Zuckerberg, the CEO and Co-Founder of Facebook noted,
Facebook is coming together with 27 organizations around the world to start the non-profit Libra Association and create a new currency called Libra.
Libra Vs. Ethereum and Smart Contract Platforms
The non-profit organization, Libra Association, is similar to several development teams behind existing cryptocurrencies like the Ethereum Foundation, Litecoin Foundation, and Stellar Organization. The Association will be responsible for implementing and releasing updates or changes on the blockchain. David Marcus, the leader of Blockchain Team at Facebook, tweeted,
What we are presenting is only the beginning, and there’s a lot to improve. We wanted to share early and work with you, rather than wait for “perfection”.
The WhitePaper also revealed that the blockchain platform would execute programs compiled in a new programming language, Move. This is remarkably similar to Ethereum and its’ programming language solidity. The programs that run on top of these blockchains are essentially called smart contracts. Hence, the vision seems to include the utility provided by Ethereum, Tron, and EOS on a scalable blockchain.
Libra Vs. XRP
There are two types of blockchain based ledger on the basis on their validator duties. The validating nodes in Bitcoin or Ethereum are permissionless, whereas in XRP and JPM coin they are ‘permissioned.’ In the former, the blockchain is open to the public for inspection, mining or staking and developing smart contracts on it. Whereas, in the later, permission is required to join the network.
There are arguments for and against both protocols; Facebook has taken the ‘permission‘ approach. Moreover, this has also allowed other Financial Services leaders like VISA, MasterCard, and PayPal to join the movement. Andreas Antonopolous noted in a tweet,
While Facebook’s Libra doesn’t compete against any open, public, permissionless, borderless, neutral, censorship-resistant blockchains, it *will* compete against both retail banks and central banks. This is going to be fun to watch.
Libra Vs. Stablecoins
Volatility has been the most significant concern around Bitcoin and cryptocurrencies since its inception. Global leaders and economists have often dubbed them as an instrument of speculation, and nothing else. Libra took the high road on this one as well, by implementing a stablecoin backed by a mixed bag of assets.
Until now, the market has primarily witnessed US dollar pegged stablecoins with institutions working on other FIAT based stablecoins. Nevertheless, as Peter Schiff noted, all FIAT currencies are eventually doomed, the team has backed it by a basket of assets (Stable currencies and Government bonds). David Marcus aims to make the currency viable for at least a hundred years.
Libra vs. Bitcoin
This comparison should have been at the top of the list. All the above features and characteristics that Facebook has implemented on Libra aims at transforming the Financial Services Industry. Zuckerberg also noted,
This is especially important for people who don’t have access to traditional banks or financial services… We aspire to make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos.
Libra can be used as a means of payment and also as a store of value due to its stability. Moreover, it is independent of centralized control, in this case, distributed centralized control. Hence, it replicates the idea behind Bitcoin and has sought to release an improvised version of it.
Libra ‘airdrop’ or launch will happen sometime in 2020. Moreover, until then, we can various organization working on Move and Libra to integrate the blockchain as per their usage.
Do you think that the ‘ultimate blockchain version’ from Facebook will dethrone Bitcoin and Ethereum? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com