In-depth analysis of Facebook cryptocurrency projects Libra: Disappointment and hope coexist

After warming up for nearly half a year, social media giant Facebook announced its own cryptocurrency project “Libra” yesterday and officially released the Libra white paper.

To be honest, from the release of the white paper to the present, I have seen it several times before and after. The comments and opinions of the various roads on the Internet have also been seen in seven seven eight eight. But very embarrassed, I still don't have "get" to where everyone is excited?

Or maybe most people just have to pay attention to what Libra white paper says, just think that Facebook will bring his 2.7 billion users into the market, which will trigger the next round of cryptocurrency.

• Fed Chairman Powell: Facebook's currency has no effect on monetary policy
• Facebook holds high "Libra" Bitcoin market rises
• Facebook's "currency" A-share blockchain concept stocks are all red and questioning Libra's risk

But no matter what expectations we have, and no matter where Facebook is going, I still need to seriously understand what Libra said and what to do.

First, the white paper just tells us that Libra's mission is to build a simple, borderless currency and financial infrastructure that serves billions of people.

However, there is not much breakthrough in the specific design and implementation. It is that Facebook has pulled a lot of giant companies and wants to work together to create a “mortgage stable currency”.

In fact, the whole white paper gives me a feeling of a bit of a hurry, so it is very disappointing. If you look over and over again, you will find that each sentence is a sense of sight!

As for the stable currency, this thing is not new in the currency circle. There are a bunch of products on the market. Only this time to end the credit endorsement of "Libra" is not Tether, the wonderful company that the auditors have to fire, but the famous Facebook and some of the world's leading industry giants.

In short, Libra will be the highest credit rating and endorsed mortgage stable currency.

But on the contrary, Libra has a fundamental difference between Bitcoin and Ethereum, which are well-known digital currencies.

Because Bitcoin and Ethereum are both "digging", their creation and trading are not endorsed by any institution or individual, but rely on people's consensus. Therefore, they are closer to commodities, and can be said to be an electronic, "precious metal" that has not yet been fully accepted by people.

Libra is a mortgage, behind the foundation, and once a mortgage occurs, Libra is not a native asset like gold and silver. In fact, Libra is more like a corporate bond of the foundation, which can be traded and settled in the market, and is based on blockchain technology.

There is actually a problem here. Libra can be distributed in a traditional way with a foundation. Why use a blockchain? In fact, answering this question, we can understand the true value of the blockchain in the Libra project.

First of all, for the currency, the various attributes behind it, such as trading, settlement, guarantee, reserve, etc., have always been the existence of the most advanced macro narrative of mankind. So what really matters is never the form, but the substance endorsement.

The credit rating of the endorsements required by the global settlement currency is not supported by the combination of dozens of giant companies. Moreover, the foundation naturally has the risk of “disadundering and repaying accounts”.

But using the blockchain here, you can use its transparent and non-tamperable features to increase Libra's credibility to a level similar to sovereign currency. While possessing the credibility of the approximate French currency, Libra also has the contract function developed by the world's top technical team and the corresponding language Move.

This is the real highlight of the white paper, but unfortunately, it's just that.

To be honest, it seems that the whole white paper really attracts me. Because if Libra is really used in large quantities as cash, it would be very interesting to support cash for smart contracts.

To put it simply, if the previous contract was written on paper, the smart contract is that the contract is written directly on the money. At that time, the kind of operation that locks the digital currency directly into the smart contract to pay wages may become a reality.

But realistically, this scene is really far away. And whether Libra can be accepted as a currency is still unknown.

Of course, if you leave this very distant and unsure "bright spot", you will find that Libra is not closest to any cryptocurrency, nor a stable currency like USDT, but Alipay.

Yes, you are not mistaken, it is Alipay! In fact, if you look closely at Libra's white paper, you'll find that Libra can do almost everything that Libra can do, including cross-border payments, and doesn't require blockchain technology. Moreover, you need to trust Facebook when you use Libra, which is actually not fundamentally different from trusting Alibaba.

Even the Libra white paper explicitly mentions that “all interest receivables” is owned by the Foundation and is not given to customers. This is not as good as the balance of the conscience.

So, what Libra really wants to do is probably to take a slice of the traditional financial market, especially the payment field. Just like Alipay, Libra belongs to the corner of the Internet giant's financial industry, but the pace is much slower.

In short, you clearly shouted "blockchain revolution", but the reality is likely to be just an "an Alipay without a balance function."

Written here, I am not singing about Libra, or saying that this thing can't be done. It just means that most people are over-interpreted, and they are too beautiful to express, and he is excited.

As for Libra's future, it will depend to a large extent on how much Facebook invests.

On the one hand, Facebook has always had the ambition to make payments. However, because the US financial system is highly closed, mature and autonomous, and unwilling to intervene by Internet agencies, it frequently hits the wall. This time Facebook wants to break this environmental limitation through blockchain technology, and with its huge user base, it is indeed possible to make a world.

But on the other hand, we can also see the obvious traces of the work in the Libra white paper and the smell of some very familiar cut leeks. From this perspective, it is difficult to judge whether Libra will be another thunder. The big rain is just a means to boost the stock price.

But in any case, Libra seems to have opened a Pandora's Box. (Wheat Field Finance)

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