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What to expect from Facebook: the Pros and cons Libra

Expected cryptoprocta Libra from Facebook caused a wave of criticism. There are even rumors that the company could abandon the development. Khachatur Ghukasyan, CEO of platform CryptoEYE from Zichain, shared the view that will be able to offer Libra, if the project will still be run.

Libra is a handy tool for international transfers, purchases and travel, because it solves the problem of expensive conversions, long remittances and underdevelopment of many banks (e.g. absence of the high Commission for the currency conversion and remittances).

You should not consider Libra as the replacement of the base currency or as a means of saving — but as an instrument of payment cryptocurrency Libra is incredibly convenient.

The main disadvantage of Libra in that it is based on a private blockchain, developed by Facebook and is not fully decentralized structure for validation of transaction nodes will need to obtain permission from the system.

Critics believe that such a structure actually deprives Libra right to be called a cryptocurrency. This is absolutely wrong: it’s just that Libra different approach to solving the “trilemma of the blockchain”. This principle States:

Three main properties are decentralization, scalability, security — any blockchain can have only two.

The Creator of bitcoin gave priority to decentralisation and security, and the scalability problem the developers are fighting still. The creators of the Libra donated decentralization for scalability, because their cryptocurrency conceived as a global tool capable of handling thousands of transactions per second. For those who vital a decentralized digital currency, there is still bitcoin. For potential users Libra decentralization is hardly considered a key condition.

The centralization of the cryptocurrencies it does not automatically less reliable, as decentralization is not a panacea. But don’t forget that Libra created by Facebook, which in recent years has greatly worsened the reputation of in the protection of user data. Here we can recall and storing of user passwords in open access on the internal servers of the company, and fiasco with Cambridge Analytica. If the company can not cope with the protection of our accounts in their social network, why give her information about personal Finance through Libra?

Facebook is Facebook: Will people trust bitcoin Libra

This is a legitimate question, and Facebook will have to try in order to allay the fears of users. Let’s hope the company will reconsider its approach to information security following the recent fine of $ 5 billion, and will provide the proper degree of autonomy for the Association Libra.

If we talk about integration stablein existing platforms Facebook, the greatest potential for implementation of payments in Libra through the company-owned Zuckerberg’s WhatsApp messenger. Users from developed countries usually use multiple instant messengers at the same time — but in developing countries the popularity of WhatsApp it is difficult to overestimate.

In the twenty-first century, Internet access has opened for billions of users. Today, the share of Internet users or 48.5 per cent of the population — just 10 years ago the figure was 25%, in 2000 this “privilege” could use only 6%. A large number of users in Africa, Southeast Asia and the middle East choose WhatsApp as a simple and convenient means of communication.

The access to financial services extends not so quickly as Internet access. To date, more than 1 billion people do not have the ability to open a Bank account, take loans, etc. As a rule, these people are forced to pay and money transfer services. Thus, the time for starting the selected ideal Libra and will allow the project to gain an audience in the hundreds of millions of people who already have Internet access, but do not yet have credit cards.

The cost of Libra is linked to the basket yet unnamed financial assets to ensure its stability and low volatility required to perform the role of a universal payment instrument.

The idea itself is not new — in the world there are many tablconv. One of the problems of this sector of the cryptocurrency industry is that not all high-end stabilini can convincingly prove that they have sufficient reserves pledged as security the value of coins.

And in this matter the status of Facebook as a public company can go to the project at hand, given the strict financial reporting requirements, you can be sure that with the reserves at the Libra everything will be fine.

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