Well, a lot of confusion revolves around Libra and Bitcoin has recently been addressed by Facebook Digital Currency Boss, David Marcus. He wrote an official note and emphasized that “Libra is Not as Open as, Say Bitcoin”.
Then What It Is?
Facebook is yet to launch Libra coin – but, yes it is two weeks since it launched the whitepaper of Libra coin. And every day, the word “Libra” is popping up on a new bulletin with striking questions, regulatory oversight, criticizing remarks and sometimes, with a positive & welcome move. In a note, published on July 3rd, 2019 on Facebook, David Marcus who is the CEO of Libra’s wallet Calibra addressed a number of questions and attempted to clear a few misunderstandings about the Libra project.
While answering to a key question “Is this (Libra) really a blockchain? It’s not open. It’s not decentralized!” the social media giant’s blockchain lead explains that ‘it is definitely not as open as, say Bitcoin’. As Bitcoin is a decentralized currency on top of open blockchain technology, according to Marcus, Libra is not as open as Bitcoin’ where anyone can participate in the consensus algorithm. In his words;
While the initial mechanism by which organizations can run a node and become a member of the Libra Association, is definitely not as open as, say Bitcoin, where anyone can participate in the consensus algorithm, the Libra Blockchain is absolutely designed to be open.
Libra Crypto User Won’t Have To Trust Facebook
Facebook understands the principle of open blockchain but at the same time, Libra is said to be on a perimissioned blockchain at its launch. In the meantime, Mr.Marcus confirmed that they’re gradually transitioning to a permissionless state in the future. At this point of time, Libra is hitting the market with few private entities that will govern its non-profit and open association, dubbed, Libra Association. Subsequently, this association counts at least 28 founding members and the name of Facebook is one among 28 members. Concerning this point, Mr.Marcus explained;
But it was important to start with trusted entities that could operate in a regulated environment and with the operational expertise required to ensure the integrity of the network in its foundational stage.
Just to note, this was the point which had earlier highlighted as the key topic of concern, citing the power of Libra in few private players including VISA, MasterCard, Vodafone, Uber, Facebook and more. Accordingly, Mr.Marcus addressed this question and states that Libra users won’t have to trust Facebook to leverage the benefit of Libra. He explained that Facebook won’t have any special responsibility for the Libra Network.
Addressing the point of permissionless blockchain, he wrote;
There’s no question that there are more decentralized blockchains available, and that the Libra Association must strive to gradually decentralize it further.