Oh, Libra… Has it occurred to you yet that perhaps venturing into the crypto space wasn’t the greatest idea? And that maybe creating an entirely new cryptocurrency as a means of garnering Facebook’s trust back wasn’t the best response to the Cambridge Analytica scandal?
Libra Pushes Through the Mud
Despite several companies exiting the Libra Association, despite several delays, regulatory problems and anger from the U.S. Congress and international governing bodies, Libra has taken the time to let its “fans” know that it will be moving forward as planned.
The Libra Association was going to start out with 28 members. It fell to 27 over a week ago when PayPal, one of the project’s biggest supporters, decided to hit the road and pursue other paths. This really didn’t look good considering David Marcus, the head of Facebook’s blockchain department and the leading developer behind Libra, used to be a PayPal executive.
From there, several defections took place. At press time, as many as six companies have cut their ties to the Libra Association, including Mastercard, Visa and Uber citing worries regarding regulation and the company’s tough relationship with U.S. lawmakers.
Libra, however, is either being very stubborn, or has a lot of resolve. Today, the company signed 21 charter members at its latest inauguration meeting in Geneva, Switzerland. Despite everything that’s happened, it appears there are a few companies out there willing to stay loyal, and Libra is doing all it can to hang onto them.
At this stage, though, it’s easy to assume that perhaps its not so much loyalty that’s keeping these firms together, but rather the potential for profit. Many of the remaining members of the Libra Association are capital venture funds that are intrigued by the notion of making money with new technology. While Facebook itself has been around for roughly 16 years, Libra is still relatively new. Nobody has developed a centralized global cryptocurrency like this before, so it’s possible many of these companies that stay are thinking about all the money there is to be had.
Will People Even Use It?
The only issue is there will be no funds unless people agree to utilize Libra, and at this stage, that notion is looking a little far-fetched. It seems Facebook is having a very hard time repairing its reputation following the Cambridge scandal in 2018, and surveys suggests that trust in Libra is very weak, with less than three percent of Facebook users saying they would consider using it.
That would be a real shame if the company puts all this work, time, and above all, money into something that winds up on the cutting room floor. If the company were to lose enough, it’s likely Facebook would have a very hard time recovering financially.
Libra developers launch pre-mainnet of the project
- The pre-mainnet is a functional copy of the future Libra’s net.
- The team plans to hold collaborative events to attract developers to the project.
Libra Association revealed the details about the development of the digital coin backed by the social media giant Facebook.
Currently, the pre-mainnet is a copy of the future operational net that allows to access the functionality and test it before the launch.
“Until we launch mainnet, the best and fastest way we have to demonstrate Libra network functionality and provide early access to developers around the world is through our pre-mainnet,” the team wrote in the blog-post.
The pre-mainnet includes seven active nodes and 14 nodes in process with eight nodes out of technical control of the team.
Notably, the test network has registered over 51,000 transactions since its launch in September. Currenlty there are 34 various projects, including ten cryptocurrency wallets and eleven block explorers created in Libra’s testnet.
“The Libra Association intends to deploy 100 nodes on the mainnet, representing a mix of on-premises and cloud-hosted infrastructure. All the work we are doing now on pre-mainnet supports this goal of greater resiliency on the network through a wider diversity of infrastructure,”the team added.
The roadmap with the key milestones of the project was published in October.
Also, the team held a Libra Core Summit to attract new developers to the project and build a collaborative development plan for Libra Core. The company plans to have such events on a regular basis to discuss issues and opportunities of Libra ecosystem with the developers. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Facebook Touts Crypto Project Libra: 51,000 Transactions and Counting
Facebook’s project Libra is building a global community of developers and technical infrastructure as the controversial digital currency is underway, despite efforts by regulators to slow it down and even halt its launch. Based on a permissioned blockchain, unlike Bitcoin and other cryptocurrencies that use public blockchains, the Libra testnet has logged over 51,000 transactions since it was reset in September.
After the Libra Association lost key member companies amid regulatory pressure and ominous letters from politicians that cautioned against any affiliation with the project, 21 remaining members, including Facebook, signed the association’s official charter in Geneva, Switzerland last month.
The organization is now praising its passionate community of developers who are moving the project forward. According to an official blog post,
“Our community of developers has responded enthusiastically, logging an amazing 34 projects in just seven weeks since launch of the testnet:
- 10 wallets
- 11 blockchain explorers
- 2 IDEs
- 1 API
- 11 clients”
According to Libra’s development update last month,
“Following the Testnet, we hope to have a successful launch of the Libra Mainnet. One method we use for tracking the project’s success is how many of the deployed nodes are managed by different partners.
The end goal of Mainnet is for all partners to have nodes deployed on the network. Each node will run on a mixture of on-premises and cloud hosted infrastructure. Our belief is that wider diversity of infrastructure will provide more resiliency to the Libra network.”
You can check out Libra’s latest blog post here.
John McAfee Isn’t a Huge Fan of Libra
Antivirus mogul John McAfee – who has repeatedly touted bitcoin, saying it will reach $1 million by the year 2020 – has a few harsh words for Libra.
McAfee: Libra Is the Opposite of Crypto
The Facebook cryptocurrency appears to be getting on everybody’s nerves lately. Members of Congress have repeatedly taken aim at the project, saying that it could potentially open the door to money laundering and other malicious activity. They are also unclear as to how (or whether) Libra could potentially keep customers’ financial data safe and secure.
Now, it’s McAfee that’s shelling some ugly words at the cryptocurrency project. In a recent interview with The Hill, he states:
Libra is the reverse of the original intent of cryptocurrency. Rather than freeing people by giving them privacy and anonymity, it follows everything that you do. It’s taking Facebook’s vast knowledge base of every individual and increasing it to include every single financial transaction that they do. I don’t think this is in the interest of the people nor in the society.
McAfee seems to have an issue with Libra’s potentially centralized nature. The idea that cryptocurrency could somehow spy on its users and report their financial habits is a little troubling for many people. Crypto is designed to be a largely decentralized system, in which people have more control over their monetary statuses.
Libra, however, will be monitored and governed by an entire Association that at point, included conglomerates like Uber, Visa, Mastercard and PayPal. While some of these companies have since left the Libra Association, the group is still comprised of approximately 21 separate enterprises looking to have a say in what Libra customers can (and cannot) do.
During the interview, McAfee took a moment to discuss his new cryptocurrency exchange, McAfee DEX, which he says is so decentralized, people are not even required to give their name or an email address when they sign up to trade. While this may sound a bit shady at first glance, McAfee argues that this is exactly how a company needs to do things if it’s serious about bringing crypto’s primary goals to light.
Other individuals don’t necessarily have a problem with Libra itself, but believe that Facebook is the wrong company to be running the show. One such person is Joseph Lubin, the co-founder of Ethereum, who recently commented that while Libra has some outstanding properties to its name, the fact that it’s tied to Facebook could potentially tarnish its reputation.
Libra Won’t Continue Without Approval
Mark Zuckerberg, the CEO of Facebook, has commented that Libra won’t continue without regulatory approval. During a recent hearing, he stated:
Some have suggested that we intend to circumvent regulators and regulations. We want to be clear: Facebook will not be a part of launching the Libra payments system anywhere in the world unless all U.S. regulators approve it.