7 things we need to know before the Facebook cryptocurrency white paper is released

A white paper for Libra's blueprint for Facebook's cryptocurrency will be released today, and is expected to be one of the most compelling cryptocurrency announcements recently announced by a major technology company.

A white paper for Libra's blueprint for Facebook's cryptocurrency will be released today, and is expected to be one of the most compelling cryptocurrency announcements recently announced by a major technology company.

On the eve of the announcement, let's review what we know so far (or think we know).

1. Libra cryptocurrency will be supported by a well-known Silicon Valley supporters alliance

According to reports, Facebook will hand over control of its cryptocurrency network to a Silicon Valley alliance called Libra Association, which will include Visa, MasterCard, Spotify, Uber, PayPal, Vodafone and eBay. Each organization pays $10 million to get the privileges to run a node in Libra, and some speculate that these nodes will be converted into transactional data for accessing all networks. According to reports, Facebook also tried to raise $1 billion from external supporters to invest in its cryptocurrency (to convey the feeling that a network will not be controlled by Facebook).

2, this will be a stable currency

Looking for a stable coin, a cryptocurrency whose nominal market value is closely linked to ordinary legal currency, will be a holy grail in encryption technology.

According to the BBC, Libra will be linked to a basket of real-world currencies, including the US dollar, the Japanese yen and the euro. It will also be used for in-app payments in “ten countries”, and Facebook has reportedly sought to work with online merchants to establish interoperability with cryptocurrencies. According to reports, funds invested by members of the consortium will be used as collateral in the monetary base "Libra Reserve".

3. Facebook is launching a proprietary blockchain

According to The Block, Libra will officially launch a test network next year. In a leaked blog post published by Facebook, Libra Network is a more efficient, safer and more valuable blockchain than it already operates.

4. Some people think this is a scam.

CoinDesk reported that several companies that contacted Facebook refused. They claim that Libra is inconsistent with the image of the gatekeeper's belief advocated by a large number of cryptocurrency communities. The reason is that a currency jointly controlled by well-known supporters is clearly a product of failure, creating an unpleasant middle ground between the inefficiency of decentralization, and systematic and centralized operations are prone to insecurity. .

"This has nothing to do with the blockchain. It's completely private, controlled, centralized, verified and authorized by a few licensed nodes," the famous blockchain critic Dr. Nuril Roubini told CoinDesk.

However, Facebook will apparently release Libra's software under the Apache 2.0 open source license, which is somewhat in line with geek ethics.

5. Facebook has been selling its tokens to major exchanges.

According to Nathaniel Popper of The New York Times, Facebook seeks to work with several large cryptocurrency exchanges, including Coinbase, and by self-proclaimed "Facebook founder" Cameron and Gemini, operated by Tyler Winklevoss. This may be obvious, but it means that the currency itself will be a tradable asset, and like any other currency we imagine, its market value will be challenged if it does not usurp bitcoin.

6. Facebook CEO Mark Zuckerberg has been talking about a new privacy-centric data model.

Zuckerberg told Jonathan Zittrain, a law professor at Harvard University earlier this year, that he is considering putting Facebook Connect (the portal for the network) on the "blockchain," he found based on the district. The blockchain privacy solution is “very attractive” and acknowledges potential security issues.

Other things he said left an impression on Libra, and if that's what he said, it's like a frozen PayPal. Listening to Zach in a metaphorical way: "Payment is one of the areas where we have the opportunity to make it easier. I believe that sending money to others should be as easy as sending photos."

7, Facebook is trying to appease regulators

In May of this year, Congress contacted Facebook to deepen its understanding of its cryptocurrency program, asking if Facebook was trying to reach out to potential users, and what steps would be taken to protect their privacy, leading the company to acquire two compliances for Coinbase. official.

As the BBC reported, Facebook is also cautious, avoiding angering regulators in multiple countries, and apparently has sought to work closely with them.

Moreover, considering that Facebook invested about $13 million in lobbying activities last year, some observers speculate that the project will stimulate a clear new round of pro-encryption regulations. Some people say that this rising trend will enhance all encryption technologies and clear the way for large-scale new development.

This article is translated into the original deep chain Deepchain, unauthorized, it is forbidden to reprint.

Source: Decrypt(https://decrypt.co/7492/7-things-we-know-about-tomorrows-facebook-crypto-launch)