Facebook encryption program Libra lacks blockchain spirit, progress will be delayed

The much-anticipated Facebook cryptocurrency project Libra may face major obstacles.

Although there are reports that Facebook announced its new cryptocurrency on April 18th, according to Coindesk's informed sources, libra's progress has been delayed, and there is still a long way to go before the software can be used. The delay is because blockchain industry insiders are reluctant to work on projects like Facebook that don't have a true cryptocurrency spirit.

One source estimated that 2020 will be a more realistic test timeframe, so any announcements made can only be forward-looking preliminary plans.

Based on conversations with seven sources, CoinDesk confirmed that Facebook's plan is to associate users' financial information with their Facebook profile. These data may be controlled by Facebook in the company database. They even talked about the integration with the external payment party MasterCard and Visa. Yesterday, The Wall Street Journal reported that MasterCard, Visa and other 10 companies have signed an agreement to fund Facebook GlobalCoin.

These insiders also compared GlobalCoin with Alipay, which allows digital payments on social platforms.

This has created a disagreement between Facebook and the blockchain industry partners. These partners are reluctant to work on projects where a user has little control over their digital identity. There is news that Facebook has had fruitless negotiations with startups Tendermint and Stellar. Facebook even expressed interest in acquiring Moxie Marlinspike's startup, MobileCoin.

The above team declined to comment. Later, Facebook acquired the blockchain startup Chainspace and showed great interest in its proprietary consensus algorithm.

Blockchain consultant Maya Zehavi told CoinDesk that she is concerned that GlobalCoin and Visa, MasterCard, PayPal and Facebook may create a system with limited accountability but sufficient power to exclude individual users from business. In addition, the technology website The Information reported that the minimum fee for GlobalCoin node operators in the future is $10 million.

“They are creating an anti-competitive moat,” Zehavi added.

"It creates a data silo that doesn't guarantee data sharing between participants. And if you become a risk management problem, you can kick you out of Uber, Facebook, and Shopify through data manipulation."

In view of Facebook's public plan and decentralization of the blockchain, the spirit of privacy is in conflict, Facebook is actively recruiting people with high salaries.

According to the Coin desk, one source said Facebook hired a team of dozens of cryptocurrency experts, each with a multi-million dollar salary. At the same time, Facebook is actively seeking partnerships with global brands like Uber. Since Facebook's approximately 2.3 billion monthly active users mostly live outside the US, this partnership is critical to positioning its cryptocurrency as a global asset rather than a US brand.

In addition, the public believes that Bitcoin and other cryptocurrencies are more secure and private than traditional payment methods, which may explain why Facebook is marketing this project in the name of the blockchain.

Facebook declined to comment on how to use or share user data. It also declined to comment on the way in which GlobalCoin accounts are regulated.

By Susan

This article comes from the push of Bitpush News , reproduced to indicate the source

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

The Avalanche Foundation Dives Into Meme Coins

The Avalanche Foundation has introduced a comprehensive 3-page guideline to assist in their transition towards incorp...

Market

The Battle of Bountiful Bitcoin: Samourai Wallet vs. Ocean Mining

Samourai Wallet accuses Ocean, a major BTC mining pool, of censoring certain Bitcoin transactions.

Market

Decoding Ethena Arthur Hayes' Views on USDe Opportunities and Risks

Arthur Hayes is confident in the exceptional approach and high yield of Ethena's (USDe) stablecoin, which could poten...

Blockchain

Revolut Launches Data Phone Plans for UK Customers

Revolut, a leading UK-based financial institution, has recently launched a new data phone plan specifically designed ...

Blockchain

Nuggets and Avalanches: A Tale of Crypto Adventures

Polygon's zkEVM is the reason why NFT sales have been able to remain strong despite recent slumps.

Blockchain

Is XRP’s Luck About to Change? The Golden Cross Predicts an Epic Breakout

XRP, a popular cryptocurrency, has been relatively stagnant recently but there may be a positive shift ahead as it fo...