Translated material
Zuckerberg vs Durov: The Bell compared Facebook and Telegram cryptocurrencies
Facebook on June 18 presented the Libra cryptocurrency platform project. It was supported by the payment systems Visa, Mastercard, PayPal, as well as influential venture funds and technological companies. Libra is more than another cryptocurrency. It is designed to change the idea of humanity about financial services.
However, not only Facebook is trying to do this. We figured out how cryptocurrencies can conquer the world and what you have from this.
This material was written for the weekly technology building The Bell . You can subscribe to it here .
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What is so important in Libra?
Brief answer: Libra is not just cryptocurrency. This is the first large -scale attempt to create a world digital currency on the subjects of the present: including the reserve, inflation targeting, additional ministry and destruction of excess money supply.
- Libra is supported by large technologists and the main payment systems: ebay, uber, Visa, MasterCard, etc.
- Unlike Bitcoin and many other cryptocurrencies, Libra will be provided with real money and financial instruments. The reserve is formed by the founders, it consists of a basket of fiat money, as well as sovereign papers. One of the most important goals of the Libra reserve is to avoid the high volatility that other cryptocurrencies are now subject to.
- Libra complies with the requirements of the regulators, since it will be protected from inflation (with the provision of cryptocurrencies will be low -inflation assets) and jumps, and the transactions themselves will occur in “conventional units” that the founders agreed to use.
- The transactions "pseudonym", that is, are not tied to real identity certificates, but any withdrawal of funds is already by traditional methods. Thus, Libra exists in a traditional banking paradigm that understands the supervisory authorities.
What am I to me? If Libra becomes popular, it is quite capable of becoming a digital analogue of dollars stored under a pillow - a popular way of storing savings in developing countries.
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Who controls all this?
Brief answer: Council from financial organizations and technological companies.
It is assumed that the Association of Libra founders will include 100 organizations that will make $ 10 million to the formation of a reserve or security. These are payment systems, technological companies, telecoms, blockchain corporations, venture funds, as well as non-profit and research organizations.
- Mastercard, PayPal, Visa, as well as Stripe and Payu (fintech and government of the Naspers holding) have already joined from payment systems.
- From technology companies - Booking, Ebay, Lyft, Uber, Spotify and others. Of course, Libra supports Facebook with its “daughter” Calibra.
- From telecoms, Iliad and Vodafone are present.
- From venture funds - Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital and Union Square Ventures.
Until three giants joined Libra: Google, Apple and Amazon. Each of them, if desired, is able to try to launch its own cryptocurrency or restrain the spread of Libra.
What am I to me? Libra are companies that comply with the requirements of the regulators - including in identification issues. In addition, they can introduce their own rules of the game or leave the old heritage. For example: the commission may decrease or disappear from the implementation during digital transfers from the VISA card to MasterCard. But at the same time, the maximum amount that is limited by the requirements of the regulators is unlikely to grow.
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When will all this begin?
Brief answer: In the first half of 2020.
- Libra organizers expect that 100 organizations will include the association. This is an important number, because the charter says that no member of the association can control more than 1% of the vote (how the voices between Facebook and its Calibra are distributed is unclear).
- Over time, it is expected that part of the votes will be given to large Libra holders who did not invest in the reserve. Five years later, such participants will have at least 20% of the vote.
- In the first half of 2020, Libra will become available to the general public. Probably, then payment decisions will appear from the Facebook Calibra - primarily a wallet.
- An interesting fact: to start a Calibra wallet, you will not need an account on Facebook. There is enough passport or other certificate issued by the state.
What am I to me? You can compare anonymous and non -anonymous crypto platform. By this moment, most likely, for several months, Ton Durov will exist and develop, which does not require a passport during registration. This blockchain platform will be controlled by fool and unnamed investors.
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Have you really done anything like this yet?
Brief answer: They didn’t do this right.
- The key problem of cryptocurrencies was their speculative nature and anonymity. Such anarchy did not like the central banks and other regulators. Libra bypasses this problem using low volatility and positioning itself as a tool for business processes of participants.
- In other words, a person with a Calibra wallet, transferring the equivalent of $ 20, in fact pays everything with real money from the Libra reserve, which is a very real deal. And although its transaction can be carried out in a semi -enony manner, at both ends the participants know at least that the payer and the recipient are identified.
- Currency wealthy money is already issuing some banks. For example, Jpmorgan Chase in February 2019 became the first large American bank to release its coin - JPM Coin. This is the so -called Stablecoin, that is, a coin with a rigid binding to the cost. JPM Coin costs $ 1, is used for purchases and transfers by customers of the bank and is destroyed after the transaction is completed. This is much faster than traditional banking transfers, including cross -border.
- Another way to circumvent regulation is to use cryptocurrencies in internal operations of payment systems. Exactly this happened recently with Ripple, which produces the XRP currency. Ripple will buy up to 10% of the MoneyGram payment system in exchange for the use of XRP in everyday operations. Ripple blue dream is to introduce XRP in banks, convincing them not to invent their tokens.
What am I to me? A convenient way to pay without the slightest opportunity to play. It is unclear how attractive Libra smart contracts will be, as its financial services will be based on real estimates, and not on speculative interest.
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What is the benefit of Mark Zuckerberg?
Brief answer: Nothing, but in whom. In 2.7 billion users.
All companies - Libra founders benefit from access to potential currency holders - ordinary people. Facebook, possessing unprecedented influence, wins three times:
- The monthly ecosystem audience, including Facebook, WhatsApp, Instagram and Messenger, has 2.7 billion people. This is one of the largest digital ecosystems on the planet. For comparison, the entire labor force of mankind has 3.47 billion people. If each user brings at least a dollar per year at the expense of Libra, any investments for Facebook will pay off.
- The main growth point for Facebook is 1.7 billion people who still do not have access to non -cash money and banking services. If their solvency is activated using Libra, the potential audience for Facebook will almost double. The key direction is the acceleration and reduction in money transfers, especially expensive in developing countries (see diagram).
- Libra will allow Facebook to earn not only on advertising. The most obvious monetization scheme is the commission from the purchase of goods and services within Facebook. Libra will turn Facebook from the world's largest advertising space in the world's largest store with huge advertising space. Most of all, in spirit, this is similar to Chinese WeChat - at the same time a messenger, an application platform and who knows everything about the owner of the wallet.
What is it to me from this: you are likely to automatically get access to Libra if you use any Facebook service.
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But what about Pavel Durov and his Ton?
Brief answer: Gram Durov and Libra Tsuckerberg correlate as a Soviet ruble and a gold dollar provided with gold to the Bretton Wood Agreement.
We described in detail the blockchain platform of Durov Ton, which should be launched until November 2019 (here is an article on the technical device Ton).
Ton's fundamental idea is to create its own scalable and protected Internet, which is able to absorb external services, but is self -sufficient.
Libra, on the contrary, is provided with a financial reserve (although, of course, not necessarily gold) and provides access to money for everyone. But its infrastructure is based on an existing economy and a system of relations, including offline ones. TON and GRAM walking in it are a much more innovative and at the same time risky system.
What am I to me? Gram is good for anonymous investment in the growing attractiveness of the virtual world. Libra - for those who move with all real money to digital space.
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What's wrong with Libra?
Brief answer: there is a lot of bad, but depending on whom.
- For speculators, the new currency is extremely unattractive, as it is originally conceived as low -layer.
- For lovers of digital currencies , this is literally written by the director of the Canadian non -profit organization Open Privacy, “Cryptocurrency with Uber ethics, PayPal censorship and VISA centralization, united by the well -known privacy of Facebook”.
- Critics have already nicknamed Libra “Tsukbax” and “Feiskaya”. They emphasize that if Facebook finds a way to dominate the created association, the whole idea of the world currency can fail.
- Blockchain experts pay attention to the fact that initially not everyone can verify transactions. This makes the platform not free. The creators of Libra are not believed when they say that over time they are going to weaken the entrance threshold.
- For corporations - Libra founders, the attractiveness of the new currency is proportional to the number of consumers who can provide digital financial services.
The main fear is that the corporate world currency is safe only if there is no dominant faction among the managers. Facebook has always had problems with ensuring equal management: recently, 68% of the company's shareholders voted to ensure that Zuckerberg leave the post of chairman. But the Facebook share capital is distributed in such a way that the control remains at the Zuckerberg himself, who did not listen to the recommendation of shareholders.
What am I to me? Think ten times before investing in Libra or trust the participants of the association your own transaction history.