Analysis: Libra shows Facebook's ambitions in the second half of the Internet

Summary

Event : On June 18, 2019, Libra White Paper, a cryptocurrency created by Facebook and 27 industry giants, was released. This is the first cryptocurrency project jointly led by global Internet, finance, telecommunications and other multi-domain giants. Gee also expressed his opinion on Facebook on Facebook.

Facebook has joined forces with multi-industry giants to launch a white paper on a simple, borderless currency and financial infrastructure for billions of people . Today, led by Facebook, the world's 27 financial and telecommunications giants and well-known academic institutions jointly released a white paper on cryptocurrency, and its stable currency was named “Libra”. Libra's mission is to create a simple, borderless currency and financial infrastructure that serves billions of people. According to the white paper, Libra is built on a secure, scalable and reliable blockchain; backed by asset reserves that give it intrinsic value; governed by an independent Libra association whose mission is to promote the development of this financial ecosystem. Internet and mobile broadband enable billions of people around the world to access knowledge and information from around the world, enjoy high-fidelity communications, and a variety of lower-cost, more convenient services. The Libra Association believes it is time to make more based on blockchain. People have the right to access financial services and cheap capital.

We believe that Libra's vision demonstrates Facebook's ambitions in the second half of the Internet. Social networks provide a platform for information sharing, and Libra will create a platform for value interaction based on a variety of scenarios. Previously, JMP issued by Morgan was still limited to use between financial customers, and Libra is indeed a stable currency of 2C, its influence will be greater, and the regulatory pressure is even worse.

The global giants are vying to lay out the blockchain, and the blockchain has entered the application era. In recent years, blockchain has become one of the most important areas for countries and giant companies. The blockchain industry is no longer an emerging field for start-up companies. On the contrary, international giants are vying to lay out blockchains. Recently, The Wall Street Journal reported on a joint currency program of 14 international banks represented by UBS Group AG. The 14 major banks and financial institutions from the United States, Europe and Japan invested a total of 50 million pounds. US$63.2 million), a joint venture company called Fnality International, will launch the USC (Utility Settlement Coin). Taking the Internet and financial fields as a breakthrough, the blockchain has entered the application era.

The continuous integration and application of blockchain, AI and 5G will promote the decentralization of the Internet business model. The blockchain provides a large peer-to-peer peer-to-peer account network, where management data and accounts are no longer dependent on the central server, making it possible for massive personal terminals to jointly manage data and account systems. The encryption features of the blockchain ensure that individuals enjoy ownership of the data, which will reshape the architecture and value distribution model of the information network. The 5G edge network and fog computing will provide the basis for network communication next time, while the edge network architecture and data communication model will spawn new products and business models. Many investors questioned that the inefficiency of the blockchain could not be compared with the centralized system, but we believe that the efficiency of the network era is only a dimension pursued, transparent and irreversible and extremely important, even in some scenarios better than efficiency.

Recommended mainline : We recommend focusing on digital property rights in the blockchain industry, including copyright transactions, digital identities (identity information, biogenetic features, etc.), supply chain finance, and edge computing. Including Anne shares, easy to see shares, Donggang shares, Kelan software, Huijin Technology, digital certification, Guomai Technology and other stocks.

Risk warning: regulatory policy uncertainty, blockchain infrastructure development is not up to expectations.

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1. Facebook leads the release of cryptocurrency, the era of blockchain application

Event : On June 18, 2019, Libra White Paper, a cryptocurrency created by Facebook and 27 industry giants, was released. This is the first cryptocurrency project jointly led by global Internet, finance, telecommunications and other multi-domain giants.

Facebook has joined forces with multi-industry giants to launch a white paper on a simple, borderless currency and financial infrastructure for billions of people. Today, led by Facebook, the world's 27 financial and telecommunications giants and well-known academic institutions jointly released a white paper on cryptocurrency, and its stable currency was named “Libra”. Libra's mission is to create a simple, borderless currency and financial infrastructure that serves billions of people. According to the white paper, Libra is built on a secure, scalable and reliable blockchain; backed by asset reserves that give it intrinsic value; governed by an independent Libra association whose mission is to promote the development of this financial ecosystem. Internet and mobile broadband enable billions of people around the world to access knowledge and information from around the world, enjoy high-fidelity communications, and a variety of lower-cost, more convenient services. The Libra Association believes it is time to make more based on blockchain. People have the right to access financial services and cheap capital.

The global giants are vying to lay out the blockchain, and the blockchain has entered the application era. In recent years, blockchain has become one of the most important areas for countries and giant companies. The blockchain industry is no longer an emerging field for start-up companies. On the contrary, international giants are vying to lay out blockchains. Recently, The Wall Street Journal reported on a joint currency program of 14 international banks represented by UBS Group AG. The 14 major banks and financial institutions from the United States, Europe and Japan invested a total of 50 million pounds. US$63.2 million), a joint venture company called Fnality International, will launch the USC (Utility Settlement Coin). Taking the Internet and financial fields as a breakthrough, the blockchain has entered the application era.

The continuous integration and application of blockchain, AI and 5G will promote the decentralization of the Internet business model. The blockchain provides a large peer-to-peer peer-to-peer account network, where management data and accounts are no longer dependent on the central server, making it possible for massive personal terminals to jointly manage data and account systems. The encryption features of the blockchain ensure that individuals enjoy ownership of the data, which will reshape the architecture and value distribution model of the information network. The 5G edge network and fog computing will provide the basis for network communication next time, while the edge network architecture and data communication model will spawn new products and business models.

Recommended mainline : We recommend focusing on digital property rights in the blockchain industry, including copyright transactions, digital identities (identity information, biogenetic features, etc.), supply chain finance, and edge computing. Including Anne shares, easy to see shares, Donggang shares, Hailian Jinhui, Xinchen Technology, digital certification, Jinzheng shares, Hang Seng Electronics, NetScience Technology, Huada Gene, Guomai Technology, Digital Zhengtong and other stocks.

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2. Facebook anchors a basket of legal and short-term government bonds, and the sword refers to “stabilized coins”.

Facebook believes that blockchain and cryptocurrencies have unique attributes that address the issues of financial service availability and reputation, including: distributed management to ensure that the network is not controlled by a single entity; open access allows anyone with Internet access to participate Among them; and security encryption technology can protect the security of funds. It also believes that the existing blockchain lacks scalability, cryptocurrency volatility, poor performance in maintaining value and acting as a medium of exchange, and some ineffective in anti-money laundering.

Facebook's attempt to solve existing financial services problems with blockchain is to issue a stable, low-inflation, globally accepted digital native currency that will employ a range of low-volatility assets (such as stability and credibility). A good central bank provides cash and government bonds) for mortgages. This is a type of issuance that is often used in "stable currency" in cryptocurrency, that is, mortgage currency (the other is mortgage digital currency).

According to the Libra white paper, Libra coins will only be manufactured when an authorized dealer invests legal assets to buy Libra coins from the association to fully support the new currency. Libra coins will only be destroyed when an authorized dealer sells Libra coins to the association in exchange for mortgage assets. Since authorized dealers are always able to sell Libra coins to reserves at a price equal to the value of the basket, Libra reserves assume the role of “final buyer”; these activities of the Libra Association are regulated and constrained by the reserve management policy, which only Changes can be made with the consent of a majority of the members of the association.

These expressions reflect Libra's role as a "world central bank" in the blockchain to some extent, and before the end of 2019, because Facebook has leadership in the Libra Association, this will make Facebook face the US Securities Regulatory Commission. (SEC), the Federal Reserve, the Commodity Futures Trading Commission, the Ministry of Finance's Financial Crimes Enforcement Network (FinCEN) and other institutions' regulatory pressures. For example, Libra may be identified as a “securities” and therefore need to be registered with the SEC, and its wallet service provider (the bank of funds on the blockchain) may also be required to register with the Ministry of Finance as a money payment service provider (MSB).

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risk warning

Regulatory policy uncertainty. At present, the blockchain is in the early stage of development. There are certain uncertainties in the management of blockchain technology, project financing and tokens in various countries around the world. Therefore, there is uncertainty in the development of industry company projects.

Blockchain infrastructure development is not up to expectations. Blockchain is the core technology for solving various applications. At present, blockchain infrastructure can not support high-performance network deployment. Decentralization and security will have some restraint on high performance. Blockchain infrastructure may not be developed. Expected risk.