A breakdown of Facebook Coin (Libra)

Danny Scott
Jun 21, 2019 · 6 min read

Introduction

Scroll to the bottom for a TLDR!

What is Facebook’s Libra?

Facebook define Libra as — “The Libra Blockchain is a decentralized, programmable database designed to support low-volatility cryptocurrency that will have the ability to serve as an efficient medium of exchange for billions of people around the world.

What are their aims?

Facebook go on to say in the whitepaper that they’re “trying to create a financial infrastructure that can foster innovation”, but of course, it will be guided by themselves and their buddies in what users can and can’t do — for at least the first 5 years their decentralised platform is actually a centralised conglomerate (it may become decentralised in the future). And, I use the word “may” with emphasis, as their current method of becoming decentralised doesn’t actually have a technical solution for how it will be achieved.

My take on their actual aims?

One side of me believes that they don’t know their aims themselves, particular as a project of this nature could evolve over time into a variety of things.

Technical

They seem to have done their technical research, however, different routes always come with different compromises.

Regulation

As soon as the news about Libra was released, governments around the world started clambering to figure out what to do and if it falls under some form of regulation? Does it sit outside? It’s a massive grey area right now, but as the Libra Foundation (Facebook) is in control, the governments have a centralised target to approach.

Internal Politics

Currently, Facebook has 28 companies signed up, each with a vote within their foundation — it all seems great! The real problem arises when they all want different developments and features to suit their business models. Don’t forget that there are quite a range of industries involved here including payments, technology, telecommunications, cryptocurrency, venture capital and non profits.

Conclusion and TLDR;

Is it a true Blockchain? No
Is it going to compete with Bitcoin? No
Is it Trustless? No
Is it Decentralised? No
Is it Immutable? No
Is it an attempt at world-domination? Yes
Do we trust it? No

CoinCorner

A leading Bitcoin exchange

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