What is the significance of Facebook launching Libra?

Recently, Facebook's global cryptocurrency project Libra official website officially launched and released a white paper. A world-class Internet giant has adopted not only blockchain technology, but also currency, and the impact is self-evident. Some even believe that this is the most important white paper in the digital currency field since Bitcoin in 2009 and Ethereum in 2013.

Many people understand Libra as a new stable currency, which is not enough, because USDT, JPMCoin and countless platform coins can be regarded as stable coins, even such as Q coins and various games. The currency also acts as a stable currency within a certain range. Although Libra is still only at the planning stage, at least a lot of innovative ideas are revealed from the Libra white paper.

Mission Innovation: From Information to Wealth Connections

In Libra's official video, it is repeatedly emphasized that “technology is changing the world… Can we create a global stable and secure currency?” “Blockchain”, “global currency” and “safety inclusive”. And Facebook also claims that this is a "new world for everyone to share money." With the world-class digital currency Libra, trade between the world has become faster and easier, and cross-border remittances of foreigners have become safe and reliable.

Founded in 2004, Facebook has been exploring the world of connections. Under this mission, it has become the world's leading online social media and social networking service provider for more than a decade, helping more than 2 billion people around the world achieve space. Link and share your opinions in the form of photos and videos.

As Zuckerberg realizes: "For your generation, getting everyone to use the Internet will bring you many great opportunities. People often use the Internet as a tool for entertainment or communication, but for this For the vast majority of people in the world, the Internet is actually a lifeline.

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And on August 21, 2013, Facebook announced the establishment of the Internet.org organization with a number of telecom partners. The project aims to enable people all over the world to access the Internet through the integration of technology industry resources. Achieve global network connectivity.

The birth of the Internet and mobile broadband has enabled 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. However, for many people, pure connectivity is not enough. Due to the impact of cost, reliability and fluency of remittances, financial services that are urgently needed by financial services often have insufficient or limited financial services, which is precisely the result. Social injustice and poverty. According to statistics, there are still 1.7 billion adults in the world who are not exposed to the financial system and cannot enjoy the financial services provided by traditional banks. Among them, 1 billion people have mobile phones and nearly 500 million people have access to the Internet.

Today, the launch of the Libra project, in line with what Facebook emphasizes, will enable “everyone has the right to control the results of their legitimate work,” an ambitious vision that will reach at least 2 billion people and span more than 100 countries. Abandoning the absolute control of the Internet in the past, but the result of all users "co-creation and co-creation." Such a mission can not help but remind people of the "civil, civil, and private" that Lincoln called at Fort Collins, which undoubtedly has a better solution to the problems of value measurement, value flow, and wealth distribution.

At present, Libra does not seem to have actual currency at the beginning. It is more about establishing a currency scale in the data age. First, it satisfies the international exchange of Internet digital currency and the penetrating payment between transnational individuals. With the establishment and improvement of the system. There is a great possibility of completing the switch of its new world currency system. If it can be successfully established and operated, it is worth looking forward to as the world currency scale of the data system of the Internet era.

Model Innovation: Building a Value Scale in the Digital Age

The rapid development of the Internet over the past two decades has brought tremendous impact to human life and brought many conveniences to people's lives. However, in the process of development, due to the low cost and easy to copy and modify the information transmission, there are huge hidden dangers in information security and asset security.

In the World Economic Forum's 2018 Global Risk Report, cyberattacks were included in the top five global risks for the first time, becoming the third largest risk factor in the world in 2018. Only in 2018, various major cybersecurity incidents emerged one after another. In January, Intel broke the "ghost" and "blown" two processor vulnerabilities, causing malicious programs to obtain sensitive information; in April, hackers used Cisco high-risk vulnerabilities to launch attacks, and more than 200,000 Cisco devices were affected; in June, Symantec Corp. found hackers to conduct cyber attacks on satellite communications, telecommunications, geospatial imaging services, and military systems in the United States and Southeast Asian countries. In September, Facebook reported hacking and more than 50 million users’ personal privacy information Risk; in November, the US Department of Homeland Security said hackers repeatedly tried to undermine the US electoral system.

And asset security incidents are more common in our daily lives. Money laundering, account piracy and countless forms of fraud are cross-border. These are common problems in our current financial sector. In fact, standing in an economy, the basic function of finance is the value scale of money and the function of payment. At present, China's Alipay and WeChat are indeed very effective in mobile payment; from a global perspective, finance is in various economies. There is also an important basic function between exchanges. Currency is the value scale of all things, and exchange is a comparison of the value scales between economies.

According to Libra's vision, it is undoubtedly the financial infrastructure to establish the Internet system, which can well understand Facebook's monetization motives.

From the perspective of the global village, there is already a world currency. With the development of technology and the deep involvement of the Internet in the future, it is necessary to form an electronic world consensus currency in the true sense of the whole earth. The structure and lifestyle of the global village and the way of thinking also need to gradually replace and replace the current monetary system with the world consensus currency based on blockchain.

From the earliest gold system to the dollar-denominated system and then to the monetary system, every switch of the world currency is often gradually connected with the existing system. Based on a basket of currencies, coupled with the dataization of the alliance chain, Libra, which started the establishment of the world monetary system from the most basic payment and exchange, is similar to the previous generations of the world currency system, and this does not seem to be too The subversive model is precisely a huge innovation.

In the face of the current situation, there are about 1.7 billion people in the world who do not have bank accounts. The average cross-border transfer requires 3-5 working days, and the average transfer rate per transfer is 7%, while 85% of the world's trade is still using cash settlement… …. From cross-border transfers to ubiquitous payments, Libra is expected to reduce these frictions, drive social wealth safely and efficiently, and truly build a simple, borderless currency and financial infrastructure that serves billions of people.

Organizational innovation: an efficient core replaces the absolute center

Although the Internet has only developed for a short period of more than 20 years, it has quickly experienced a civilization process similar to that of human society for thousands of years. From the initial local area network to the global interconnection, the application industry has also grown from a local to a global unicorn enterprise. evolution.

Today, from the US FAAMG (Facebook, Apple, Amazon, Microsoft, Google), to China's BAT (Baidu, Alibaba, Tencent) and TMD (Today's headlines, Meituan, Didi), and countless new Internet giants, It is often a centralized form of organization.

The centralized organization form brings efficiency to a certain extent, and because of the network effect and scale effect, it can facilitate the rapid growth and agglomeration of Internet services, which is also an important feature of the development of mobile Internet. However, it cannot be ignored that the centralized organizational form is also prone to form new Internet totalitarianism, which not only causes the organization to be rigid and bloated, but also has great obstacles to internal innovation. Decentralization and openness are the new trends in the future.

Libra Network is managed by the Libra Association (non-profit organization), which includes well-known companies, non-profit organizations and academic institutions in various industries around the world. Facebook is a member of the association and is responsible for the construction and operation services before the official network release. It will continue until the end of 2019, after the official network release, Libra will be managed by the association.

The Libra Association has a total of 28 members of the initial association and plans to reach 100 in the future. The members of the initial association cover a number of industry giants such as payment, e-commerce, TMT, telecommunications, and some of the leading forces in the blockchain industry and venture capital industry and well-known academic research institutions. It is worth noting that Internet companies such as eBay, Lyft, and Uber have the opportunity to provide rich payment scenarios for Libra. MasterCard, PayPal, Visa and other payment giants have the opportunity to become a “compliant currency exchange service provider” in the Libra network. Or act as a clearing center in the chain expansion plan.

In contrast, the centralized organization of the traditional Internet giants is somewhat like a monarchy, which can bring about the concentration of resources in a short period of time and form rapid growth, but there are natural closures and limitations; Bitcoin, Ethereum and other thousand Currency bidding is somewhat like anarchism. Although it is absolutely fair, it is easy to form huge uncertainties. Similar to the sharp rise and fall of various currency prices, it is not conducive to building a stable financial order. The Libra Association Similar to the democratic republican system, there is no absolute center, but there is an efficient core, which can guarantee the fairness of the organization and balance the stability of development, which is crucial for the establishment of the financial foundation.

Thinking: Why is Facebook launching Libra?

With the advent of the digital economy era, the value of a company is no longer a possession of resources, but a hub for information and wealth circulation. Therefore, there is a platform for value. From the current business of the five global Internet companies with the highest market capitalization, Apple is the largest mobile terminal platform, Microsoft occupies the computer platform, Amazon is the largest enterprise application platform, Google is the largest information transmission platform, and Facebook is the individual. The largest platform for applications. This corresponds to the Chinese market. In fact, the Internet giants undoubtedly provide an efficient platform in a large-scale market.

However, in contrast, Facebook's social attributes make its data security critical, and because of the widespread suspicion of data breaches, the company's great instability.

Libra's launch is a crucial choice for Facebook. First of all, the Libra project is based on the application of blockchain technology, which can greatly ensure information security. This is undoubtedly the inevitable choice for Facebook to continue to consolidate the original social platform, giving users more confidence. Second, Facebook currently has 100. More than 2 billion users in many countries, which exceeds the current use of all currencies (including national sovereign currency), when the "behavior is payment, the state is settled" real realization, will undoubtedly bring great improvement in financial efficiency, Facebook It will also occupy another platform for larger, higher-frequency use; finally, the Libra Association's setup, and the inclusion of the current head office in many industries, this mode of cooperation with its competition will further enrich Facebook's business. Ecology, for Facebook's next step can usher in more room for development.

Of course, any new technological revolution can't get rid of certain obstacles. Libra's proposal has won both appreciation and many doubts, as well as local supervision, but it is precisely every breakthrough that finally brings the society. Real progress.

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