قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Monumental fight for Facebook cryptobook comes

Monumental fight for Facebook cryptobook comes

Michael J. Casey is Chairman of CoinDesk's Advisory Board and MIT's Digital Unit Initiative Senior Adviser for Block Investigation.

The following article originally appeared in the CoinDesk Weekly, custom-made bulletin, delivered every Sunday only on

Given how slow the Washington lawmakers have taken to produce a coherent, informed look at the crypto-wave, the actions of the Financial Services Commission last week over the ambitious Facebook balance project were remarkably quick

did not reflect the urgent demands of Rep. Maxin Waters (D-Calif.) Facebook to suspend work on Libra until hearings are held or how European lawmakers have filed similar complaints. 1

9659005] The important outcome of these legislators' actions is that they can make such requests at all. as this is not the case for truly decentralized projects.

Unlike BattleKnight, a representative in Congress can directly identify and talk to the people in charge of the Libra project. They can summon them and thus press them. They can start with David Marcus, head of the Facebook subsidiary at Calibra, but ultimately this is Mark Zuckerberg's Chief Executive Officer, who will give legislators the greatest influence.

In this case, the dollar stops with Zook.

Now imagine a Congressional leader who calls for a halt to the development of the bitch. Who will be putting pressure on an end to an open source project involving millions of world-wide, mostly unidentified developers, miners and consumers?

This distinction – between a project with one recognizable authority and another whose management is distributed and without a founder with a founder who has never revealed its identity – goes to the heart of the cripto critique of society that the initiative of the giant of social media is not resistant to censorship.

When someone is responsible, an interested party – a politician, a banker, a regulator, a shareholder – can rely on them to make changes. And when the bloc consensus model is based on authorized membership in a club, a coordinated effort for change or censorship, the book is always possible. And if the leading registry or its software can be changed by this pressure, Libra's platform can not unconditionally promise to support open, unlimited access for users and an inexpensive environment for developers to innovate.

Let's be clear: Libra's designers have thought deeply about how to protect their project from Facebook itself, both in a real sense and in a public view. In their commitment to decentralization, the team has placed the code under an open-source license, handed over the management of the network to a separate Swiss foundation that has contributed 27 external partners to work with Facebook as independent, authorized nodes in the network and verbally committed to the transition to a model without permission over time. There is a structure and a road map that Libra can grow and survive regardless of its genesis as a Facebook project.

It's all right. But we are still in the phase of genesis, which is and will depend on the central role of a particularly powerful company for a while.

The Problem of Culture

At risk of telling the obvious, Marcus and his team are paid by Facebook. Follow the money, as they say. But also, follow the code.

The most important source code of the Scales Protocol is now open, but it's designed and generated on Facebook. So, whether project managers and developers resist or not, the culture of this organization will be essentially embedded in Libra's design priorities.

The elephant in the room is that the latest news drum has revealed Facebook's corporate culture is deeply toxic. The company's capitalism surveillance model has turned consumers into pawns in a global data manipulation game, cultured echo chambers with limited thought, irreparable harm to the worthy cause of journalism, and deeply undermined our democracy.

This inheritance is an inevitable reason why people, including MPs, are worried about the fact that Facebook may be on the way to creating a new international model for money and payments. Correctly or wrongly there is optics that is not useful.

Wharton Professor Kevin Verbah argues in the New York Times this week that Facebook scales are a bold effort to restore public confidence by leveraging the accountability embedded in blockchain technology. But at the stage of the genesis of the project, with no choice but to trust Facebook's early contribution, the legacy of previous distrust can easily become a huge barrier to its advancement.

In spite of everything above, I actually want Libra to succeed. (Note: I also want Facebook to die – this is not a contradiction, these two results can and should be separate, in fact, that's the main issue of the problem.)

Libra's team has focused on achieving financial inclusion for the 2 billion adults in the world who do not have bank accounts. This is a noble goal and they go in a smart way – from a truly international, cross-border, interbank perspective. Take all these people into the international economy and the payout can be huge for them and the rest of us.

And let's face it, Battlein fails to meet the promises of his advocates for a financial inclusion decision. The impact of Bitcoin and other cryptolaughs on the $ 800 billion global money transfer market is negligible.

Of course, deployment can increase if the Lightning chain lives in line with its promise to allow for larger transaction processing if stable projects solve a volatility problem and if new encryption solutions can improve security and user experience with cryptographic portfolios. But these decisions will take time. We must act now.

In the end, it is not clear that global human-to-human payments are a viable case of using battlefields, perhaps because too many HODLing speculators push all spending. And, of course, no other pay-focused cryptography has placed a large part of the money transfer market.

So, perhaps the recipe for global payment expansion lies in a cross-border low-volatility international stabilizer backed by a basket of leading currencies and developed with huge programs and marketing of 28 technology and financial giants. Also, when you combine the number of users on Facebook, Instagram and WhatsApp, the number of potential wallets reaches 4 billion. Effects of the global network. For all the other things that are equal – that is, if we ignore the problem of Libra genesis that inherited the toxic roots of Facebook – it can also be argued that the authorized corporate network is the best approach for Libra's blockers in place of a completely open, impossible chain such as a battlefield or ether. The heavy upturn needed for early global convergence – software development, marketing efforts and public policy – requires significant corporate resources to be deployed in a targeted, coordinated way that can hardly be achieved by open source communities. There are advantages in terms of efficiency of centralization. As the project grows, Libra hopes to expand the consortium. This could undermine the effectiveness of coordination, but with the classic compromise between centralization and decentralization, adding new members – more NGOs, some banks, perhaps trade unionists and some state pension funds – will achieve greater diversity and lower capability for reconciliation. This is far from perfection, but the transition in time makes things closer to resisting censorship in the future when it will matter – if it comes to that.

What does this mean for Battlecruise and Cripp

you think Libra's success will be positive for the battleships – and the price action last week suggests that the market sees the same thing.

Here's why: Now, a value proposition that's good for a battleship is that it's going to be a more liquid, numerically contemporary risk hedge model than gold when people have to keep their value in something immunized by political and institutional risk. This argument could be strengthened if Libra is able to turn billions of people into electronic payment portfolios, as it will broaden the strength of block-based digital money as a way to the future. At the same time, because of its genesis as a Facebook-initiated, authorized system, Libra will not shake the perception of political inclination – censorship – risks. For many people, then the battlefield, also called digital gold, will become an obvious alternative.

The currency-backed balance marker is a true competitor to other backup cryptos such as the USDC issued by the CENTER Coalition originally formed by Circle and Coinbase, GUSD, Gemini's stablecoin, and PAX , by Paxos

But we can imagine the events that work for the latter. Developing countries such as India, for example, may become hostile to a new currency that comes into circulation, which takes away the demand from their local currencies, but they would accept a digital dollar, given , that the greenback is already circulating in their economies. Consumers could also be happier to keep the symbols linked to single sovereign currencies instead of a basket that is difficult to measure. And if the concerns about centralized control undermine Libra's confidence or restrict innovation, the fact that these symbols are built on really impossible blocks can make them more attractive (even if you still have to trust the reserve holder to guarantee price stability.)

Whatever happens, the world of cash flow is incredibly enormous. Only foreign currency transactions cost $ 6 trillion a day. This allows plenty of room for different models, different tastes and different trust systems to coordinate digital value exchanges. none of its Crippo competitors ever managed to overcome the barriers to economic participation. Financial exclusion generates poverty, which in turn generates terrorism and war.

And if we assume that technology, if it is not ready yet, will eventually get there, then the biggest threat to it is a political mistake. 19659004] The wording of the statements by Waters and European legislators was that the private exchange system could not replace national currencies. This is not what Libis intends, but the belief that it undermines national sovereignty over money can cause fears and lead to a ban on Libra. And if that happens, it creates an ugly precedent for all other competing ideas, whether USDC, GUSD, PAX or DAI or something else.

The capacity of projects to promote financial inclusion may also be affected by the Financial Action Task Force or the FATF, the adoption of a new rule for the exchange of cryptographic data. If they are ratified by enough states that could limit the free flow of crypto-data between addresses that have not gone through a process known as "guess your client." In other words, this could represent a real hindrance to Libra's dream and all others to financially involve "untied banks".

The end result: Libra's team has interrupted work and we all have a lot to do with it. Project representatives have to face the reality that at least the dollar stops with Zook and the regulators will use it against them.

We all have to wish them success, trying to persuade politicians that an open system of global financial transactions is important. (It is encouraging that the Bank of England is open-minded, offers technology companies like Libra to have access to funds directly from central banks .)

But, likewise, we must be vigilant against corporate authority that can easily turn this important project into something more sinister. Facebook's own history is a reminder of the risks we face.

I think that right now another company is working with this ball. But as this is not the case, the need for all of us to take direct interest in this project is even greater. powers. But we also have to expect an intelligent, open regulation that encourages companies to compete and bring innovations to an open system that creates opportunities for everyone on this planet.

Photo: David Tran Photo / Shutterstock.com

Source link