The Facebook-founded Libra Association has revised its planned digital currency after regulatory concerns and public backlash made the project's initial vision untenable.
Libra was introduced last June as a global digital currency, that would be linked to the value of real-world currencies and used by Facebook and others. It was to be based on a permissioned blockchain only authorized parties could record transactions with permissionless governance no single party could change the rules of the network.
Initially, the idea took the form of a chaperoned version of Bitcoin. Rather than relying on permissionless consensus to exchange value, Libra's transactional bookkeeping was to be overseen by Facebook and an association of data-harvesting friends.
But its stated ambition [PDF] was to move toward the Bitcoin model, "where anyone that follows the rules of the protocol and contributes the right types of resources (e.g., computing power in the case of a proof-of-work system) can do so."
That's now been abandoned, replaced by more modest goals outlined in an explanatory paper [PDF].
Derisively referred to as Facebank or Facebucks, Libra alarmed regulators, advocacy groups, and competitors. The idea of allowing Facebook to set up a minimally accountable global financial data chokepoint after its many privacy and misinformation controversies raised more than a few eyebrows.
The criticism that followed last summer's launch announcement led to many of the initial Libra Association members to back away from the project.
So Libra now intends to play by the rules of global finance. On Thursday, the Libra Association asked the Swiss Financial Markets Supervisory Authority (FINMA) for permission to obtain a payment system license. The currency's future form thus looks more like PayPal than an Ayn Rand-inspired run around regulation.
According to David Marcus, co-creator and a board member of Libra and head of Facebook digital wallet subsidiary Calibra, this means implementing measures to combat money laundering, to avoid financing terrorism, and to enforce national financial sanctions.
Libra will now offer "stablecoins" digital currency pegged to, and exchangeable for, specific national currencies in addition to the multicurrency Libra Coin.
And instead of moving toward a permissionless model, Libra aspires to move toward "a market-driven open and competitive network," said Marcus via Twitter.
He also noted that the Libra Association is now member-funded, with less than 10 per cent of funding coming from Facebook. Distancing Libra from Facebook may make it more palatable to those put off by the ubiquitous social network.
The Libra Association anticipates that Designated Dealers (of Libra currency), Virtual Asset Service Providers (businesses selling digital stuff), and Unhosted Wallet Users (people with Libra Blockchain addresses) will be the major users of the currency.
Not everything is changing however: Libra will continue to rely on blockchain technology. The Register asked the Libra Association why a blockchain, as opposed to a traditional database, is necessary.
A spokesperson for the organization offered a not-particularly enlightening reply: "Blockchain technology leverages decades of experience with distributed and open systems. We are using blockchain technology to bring these innovations in security and operability to a new payment system."
The organization's white paper provides a bit more insight into the ostensible benefits of a blockchain.
"One outcome of the above design decisions is that the Libra Blockchain will provide public verifiability, meaning that anyone (validators, Libra Networks, Virtual Asset Service Providers (VASPs), law enforcement, or any third party) can audit the accuracy of all operations," the paper says.
"Another outcome of the above design decisions is that the Libra Blockchain will support a privacy approach that will take into account the variety of participants on the network."
Yet the paper provides no detail about how everything will be both auditable and private, or how the Libra Association defines privacy, which in general means being unobserved.
"We will collectively continue to work as hard as we can to enable people and businesses to send and receive money globally as easily as it is to send a text message and at a much lower cost," said Marcus via Twitter.
Sponsored: Webcast: Build the next generation of your business in the public cloud
Go here to read the rest:
- THE TEACHER'S DESK: We're almost there | Columns | thetimestribune.com - Times Tribune of Corbin - April 11th, 2021
- Allison Hanes: Laissez-faire fatalism seems to have infected Legault - Montreal Gazette - March 31st, 2021
- Letter: Re: Ethan Orr's Article on the Middle Class - Arizona Daily Star - March 31st, 2021
- Reaching Active Minds: Ayn Rand and the Ford Hall Forum - New Ideal - March 25th, 2021
- In Mosaic's darkly funny 'Inherit the Windbag,' an epic bickerfest (ep. 3) - DC Metro Theater Arts - March 25th, 2021
- Ralph Nader on Corporatism's Threat to Democracy - Progressive.org - March 25th, 2021
- There is such a thing as society: it has overcome Covid and restored the truth - TheArticle - March 20th, 2021
- Letter to the editor | UPJ nowhere to be found on Outlier site - TribDem.com - March 20th, 2021
- Talks of replacing Woody Allen in Ann Arbor mural reignited after new documentary - MLive.com - March 20th, 2021
- We wince; therefore, we are | Our Readers Speak | register-herald.com - Beckley Register-Herald - March 20th, 2021
- Why We Need Shakespeare and Beethoven - The Dispatch - March 20th, 2021
- B1G tourney preview: After 20 wins in NCAA regular season, Gophers still have something to prove in playoffs - Brainerd Dispatch - March 20th, 2021
- The Worst Ted Cruz Moments in History - Dallas Observer - March 20th, 2021
- The Books That Shaped Tina Howard and Teas to Pair With Them - Fort Worth Magazine - March 7th, 2021
- Are You Bullish or Bearish on America and Wall Street? - Stock Investor - March 7th, 2021
- Satire: Why two beers is the perfect amount - The State Press - March 7th, 2021
- Elon Musk and Amber Heard: How Did the Two Celebrities Meet? - Showbiz Cheat Sheet - March 7th, 2021
- CPAC Exposed the GOP's Fight for the Working Class as Just Another Culture War | Opinion - Newsweek - March 7th, 2021
- An Excerpt From 'Peter and the Wolves' by Adele Bertei on the Brief, Brilliant Life of Peter Laughner - Cleveland Scene - February 10th, 2021
- Our nation has never fully agreed on much, but it hasn't always torn itself apart | TheHill - The Hill - February 8th, 2021
- Paul and Romney embarrass themselves by lashing out at trans athletes - Outsports - February 8th, 2021
- Why Telling Students to 'Trust the Experts' Is Poor Advice | Caroline Breashears - Foundation for Economic Education - February 8th, 2021
- Liz was Isolated as a Felon on the Run, Transitioning Alone: Nick Cammilleri and Zackary Drucker on Their HBO Docuseries The Lady and the Dale -... - February 8th, 2021
- Letter: Pleased that Newhouse defended Constitution | Letters To Editor | yakimaherald.com - Yakima Herald-Republic - January 29th, 2021
- The more I practice, the better my luck - Las Cruces Bulletin - January 29th, 2021
- Geddy Lee on the Genius of Neil Peart - Rolling Stone - January 29th, 2021
- The Lady and The Dale | Review - The GATE - January 29th, 2021
- Ayn Rand on Morality and the Misuse of Political Power - New Ideal - January 27th, 2021
- 'The Lady and the Dale': TV Review - Hollywood Reporter - January 27th, 2021
- Closer to the park: St. Catharines commissions artwork to honour Rush drummer Neil Peart - The Globe and Mail - January 27th, 2021
- No more echo chambers: the internet's best left-wing thinkers - Spectator.co.uk - January 27th, 2021
- Currencies get back to the task at hand - FXStreet - January 27th, 2021
- Wikipedia is the last bastion of idealism on the internet Prospect Magazine - Prospect Magazine - January 27th, 2021
- article image Op-Ed: Investors making big money, but where are the trillions going? - Digital Journal - January 19th, 2021
- Unmasking the Deceased Programmer Who Donated 28 Bitcoin to Capitol Hill Rioters - Crypto Briefing - January 19th, 2021
- An Expert Explains the US Capitol Hill riot: anatomy of an insurrection - The Indian Express - January 15th, 2021
- PERRY: Mayor Coffman's mock-homeless close-up highlights the danger of unreality TV - Sentinel Colorado - January 15th, 2021
- The Meaning Of Work For A Happy Life (And New Year) - Forbes - January 15th, 2021
- Is It Selfish to Never Wear a Mask? - New Ideal - October 22nd, 2020
- Ayn Rands power isnt dimmed by the collectivist age of the pandemic - Telegraph.co.uk - October 20th, 2020
- What Tech Calls Thinking: Book Review | by Joshua Adams | Oct, 2020 - Medium - October 20th, 2020
- Welcome to Dystopia: 45 Visions of What Lies Ahead - Morning Star Online - October 20th, 2020
- The Dictatorial Impulse Behind the Shaming of PPP Recipients - New Ideal - July 21st, 2020
- Instead Of Open Or Closed, Dial Your Mind To Active - Forbes - July 21st, 2020
- Big problems with the Paycheck Protection Program? - The Week - July 21st, 2020
- Finally: Diamond and Silk are releasing a book - The Spectator USA - July 21st, 2020
- Tagore's Gora to Krishnamurthy's Ponniyin Selvan: Add these regional language books to your reading list - India Today - July 21st, 2020
- When MGM and the FBI Chased 'The Father of the Atomic Bomb' - WhoWhatWhy - July 21st, 2020
- What's Wrong With Ayn Rand's Philosophy? - The Objective ... - July 13th, 2020
- In sign of the times, Ayn Rand Institute approved for PPP loan - Reuters - July 13th, 2020
- 'We Took PPP Funds and Would Do It Again' - New Ideal - July 13th, 2020
- Auchter's Art: The confusing narrative of Betsy DeVos - Michigan Radio - July 13th, 2020
- Wisconsin school board member asked to resign after posting that 'George Floyd is drug free for 2 months' - Milwaukee Journal Sentinel - July 13th, 2020
- St. Joseph reaps short-lived cash infusion - News-Press Now - July 13th, 2020
- Tips and Murmurs: Ayn Rand Institute gets government handout - Crikey - July 13th, 2020
- Local anti-tax groups find even they need big government aid sometimes - Seattle Times - July 13th, 2020
- Climbing aboard the PPP train | Opinion | citizensvoice.com - Wilkes-Barre Citizens Voice - July 13th, 2020
- Prominent and politically connected Austin firms among those getting bailout loans - Austin American-Statesman - July 13th, 2020
- Indiana PPP loan recipients: See the full searchable list of who received them - Courier & Press - July 13th, 2020
- Mississippi PPP loan recipients: See the full searchable list of who received them - Hattiesburg American - July 13th, 2020
- Paycheck Protection Payouts Give Taxpayers Plenty To Ponder | K. Lloyd Billingsley - The Beacon - July 13th, 2020
- Whats the Deal With Parler and its Rising Popularity? - The Wire - July 13th, 2020
- We Talked With the Cast of 'Brave New World'! - The Mary Sue - July 13th, 2020
- Remember to find a reason to smile - News from southeastern Connecticut - theday.com - June 24th, 2020
- Shockingly, Law School Named For Affirmative Action Opponent Bad At Race And Diversity - Above the Law - June 24th, 2020
- When Tribal Journalists Try to 'Cancel' Ayn Rand (Part 2) - New Ideal - June 20th, 2020
- Understanding the Reactionary Outlook - Merion West - June 20th, 2020
- I visited the secret lair of the Ayn Rand cult - Haaretz - April 18th, 2020
- Ayn Rand's dystopia is here right now and 'Atlas' is shrugging - Fox Business - April 18th, 2020
- Rugged Individualism in Times of Pandemic Endangers Human Life Everywhere - The Good Men Project - April 18th, 2020
- The very American conflict between liberty and lockdown - The Week - April 18th, 2020
- Kelly Loeffler Knows What Socialism Is, And It Is 'Opposing Insider Trading' - Wonkette - April 18th, 2020
- OP-ED | The Era of Small Government is Over - CT News Junkie - April 18th, 2020
- Gangster in the White House: Noam Chomsky on COVID-19, WHO, China, Gaza and Global Capitalism - Democracy Now! - April 18th, 2020
- Experts Assess Pandemic's Damage to the Economy - New Ideal - March 31st, 2020
- Yaron Brook Talks Ayn Rand's ATLAS SHRUGGED, FOUNTAINHEAD & Covid-19 On Tom Needham's SOUNDS OF FILM - Broadway World - March 31st, 2020
- Sen. Rand Paul's reply to why he risked exposing people, or Selfish is as selfish does - Louisville Eccentric Observer - March 31st, 2020
- The Social-Distancing Culture War Has Begun - The Atlantic - March 31st, 2020
- How Coronavirus is shaking up the moral universe - Economic Times - March 31st, 2020
- Society's 'invisible bonds' come into the light - Newsroom - March 31st, 2020