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How different is the Facebook cryptobook

A visual representation of a coin with crypto-gravity displayed in front of the Facebook and Libra logos.

Chesnot |

The Social Media Company was forced to defend the Capitol Hill project due to regulatory concerns over data privacy and potential illegal exploitation while the G-7 warns it to be a " serious "legal risk.

This is an experiment in monetary systems for the digital age, and is inevitably compared to popular cryptoLavels like a BattleKnight. However, many experts ask whether Libra can even be called crypto-wave

Besides the fact that both come with white paper and are called crypto-fluorescence, Libra and Battle are actually very different. Here is a brief description of the main differences between the two.

Different Technologies

One of the biggest differences is the underlying technology behind the two currencies. blockchain. In essence, this is a database supported by a network of computers on which transactions are secured in such a way that it is almost impossible to interfere.

Libra also use a form of block or distributed technology. But unlike a battlefield, Libra's block is allowed ̵

1; at least for now – which means that transactions can only be added to it by a group of trusted parties. Each member of a non-governmental organization has invested at least $ 10 million in the project.

Libra will create a centralized structure run by an unselected "association," made up exclusively of large institutions that have bought their voting rights, "said Ido Sade Mann, founder and president of the Saga Foundation, a crypto-product company JP Morgan's chairman Jacob Frenkel

This is different from the bitcoin network that can be accessed and maintained by anyone who has enough hardware and internet access.

"CryptoLabs are determined by the lack of trust in trusted intermediaries," said Peter van Walkenburg, director of the Coin Center's Cryptology Policy Research Center, on a recent blog.

"We believe that Libra is not a cryptic because of the use of a permitted book and relies on a trusted issuer to own and manage a fund of assets that support the currency."

Bitcoin's White Paper describes the virtual currency as an equivalent payment system, allowing people to exchange money without going through a bank.

This is commonly used today as a form of investment, with the term "HODL" being a common jargon in the industry to describe buying and staying in the cryptoLight in the long run. It is often called "digital gold".

Libra's main purpose is to use cross-border payments and money transfers. The currency is tied to a basket of government-backed currencies and other assets to avoid variable fluctuations, often seen in cryptobultures as battlefields and ethers. maintaining a stable value. David Marcus, Facebook's head of the blockchain initiative, has already said it will work "more like a traditional currency" than a crypto-roll.

"Battle of Facebook and Battle of Facebook are stages of currency development, but in completely different ways," said Charles Heiter, CNBC's co-founder and CEO of CryptoCompare's Digital Forex Comparison Platform.

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"Battle is unauthorized, fully decentralized, deflationary and volatile." Libra is allowed, more centralized, regulated by supply and demand, and is fixed to fictitious currencies. "is that Facebook and its partner companies can adjust their supply to match the amount of other assets held in reserve, effectively maintaining a stable price even when demand changes

Bitcoin on the other hand has a fixed The total number of battles that will ever be cut is "hardly closed" to 21 million

"Battle delivery is fixed and can not respond to market demand," said Sadeh Man of the Saga Foundation. "Libraries are created or burned when one of the authorized is Libra's distributor to deposit or withdraw money from his reserve. "But some worry that the block block company's project may be tied to other digital assets by regulators

This would be problematic given the difference between Libra and the digital currency as a battlefield, as the battlefield excludes the need for financial intermediaries, the Libra model depends on the individuals who form the Libra Association, Van Walkenburg of the Coin Center said.

"A system without intermediaries is a system without an intermediary risk and therefore there is no need for regulation aimed at protecting against the types of risk presented by intermediaries," he said. White paper with scales and hopes to reach 100 members until the release of the currency. The token will be launched in the first half of 2020

Although the Bitcoin network includes so-called "miners" recording transactions, there will be no point regulating them as they are not credible custodians of consumer funds, he said Van Valkenburgh. The exchange and portfolios of crypto-lutets, on the other hand, require regulatory oversight, he added.

Questions about how Libra will fit into existing financial regulations were raised during a Wednesday hearing. The Facebook Marcus was on the grill of whether Libra can be considered financial security, which he thinks can not be. But Markus said he could possibly be considered a commodity.

Jace Clayton, chairman of the Securities and Exchange Commission, told CNBC last year he told CNBC that cryptopludes like a battleship can not be regarded as securities. Cryptouls are "substitutes for sovereign currencies" like the dollar and the euro, he said.

Nevertheless, if Facebook and its partners manage to overcome the regulatory obstacles that accompany Libra, the currency "will undoubtedly have a tremendous impact on

Andy Bryant, Chief Operating Officer of European BitFlyer CryptoLogging Business Libra could begin to persuade people that there are "other ways" to store value rather than using fiat currencies such as the US dollar. "If that's all Libra is doing, I think it will be a big step forward , "ca for him.

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