Facebook’s Entry Into Crypto is Bad News For Decentralization

Josh Lawler
Jun 26 · 5 min read
Photo by Sean Pollock on Unsplash

(Not investment advice or legal advice)

From the depths of crypto-winter, forged by the Securities and Exchange Commission, enters the enterpization of distributed ledger technology. In 2019, at Blockchain conferences from New York City to Amsterdam, the number of developmental projects exhibiting is dwindling and corporate-enterprise salespersons are multiplying like tribbles.[1] They have names like IBM, Lenovo, and Accenture. Of course, Facebook Libra is the talk of the town.

What we stand to lose

This is a real bummer. Adoption and operation of decentralized systems provides a chance at something new for this world; a reason for us all to get along. I’m not naïve enough to suggest that Bitcoin equals world peace. I will say that cryptocurrency[2] and publicly-available, decentralized ledgers foster an unprecedented level of collaboration across individual population demographics.[3] Never before has there been complete open access to uniform business information (a public ledger). Everyone involved is sharing. In a world of abundant resources, we share. Take away the open access (for instance, by restricting information to a ledger open only to select viewers (say a consortium) and we have the world of scarce resources. Scarce resources are a primary motivation for almost all conflict.

How we are going to lose it

Photo by Markus Spiske on Unsplash

What we can do about it — Decentralization finds its niche

Photo by Hasan Almasi on Unsplash

Josh Lawler

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Josh Lawler is a partner at Zuber Lawler whose practice focuses on mergers & acquisitions, securities law and technology transactions.