A recent article in coindesk ‘I Don’t Trust Facebook With Anything:’ The World Reacts to Facebook’s Libra was an interesting read, here are my thoughts on why Facebook’s project libra will never be trusted by the blockchain community, would like to hear further thoughts?
It’s not decentralized in the first place to even be blockchain technology.
The Daily Crunch TechCrunch’s round-up of important stories has stated that Facebooks Project Libra is NOT a blockchain technology. Another article by TechCrunch denounces libra from the cryptocurrency pool of talent "Libra currently looks more like a fiat currency than a cryptocurrency" Essentially, the Libra Association is now in charge of a quasi-fiat currency and will face a ton of challenges on the regulatory front. It comes down from its governance structure and technical implementation.
At the heart of cryptocurrencies and much of the blockchain technology behind them is the concept of ‘decentralization’.
An article in crypto briefing explains decentralization as a movement. It is a conscious effort by some people across the globe to reduce the control that certain organizations, such as banks and technology companies, exert over our lives. Truly decentralized blockchains, like Bitcoin’s, are controlled by no single person or entity. Users are in control of what they spend, with whom, and on what. The miners that work to keep the network running smoothly do receive a transaction fee for doing so. It is minuscule in comparison to that imposed by Visa, MasterCard, and PayPal. Legacy payment processors have joined forces with Facebook to co-opt the cryptocurrency movement and keep control in the hands of the global conglomerates that have been selling your data and taking your money for years. Libra will be a centralized cryptocurrency, despite efforts to involve stakeholders such as other payment companies – which is likely a ploy to avoid the regulatory issues that have plagued the cryptocurrency industry to date.
Who is doing it right?
Facebook’s project Libra seems oddly similar to Element Zero, however, unlink Facebook and all other corporation partners, Element Zero foundation is a not-for-profit organization with a stablecoin that completes removes volatility. The Element Zero protocol is live and did not take Visa and Uber (two main blockchain value violators) to give $10M to complete. Payment Processors Join Forces With Facebook To Control, Tax, And Monitor Your Spending sources have compared Facebook’s GlobalCoin to Alipay, which provides digital payments across social platforms however has been linked to the Chinese government surveillance, and cited political lobbying as a foundation of Facebook’s broader effort.
Facebook has a history of selling, leaking and controlling users data.
Facebook has already misused your data and now project Libra wants control of your money. If history shows, they will use and share your data according to its own agenda rather than that of the people and the decentralized community. Sources attribute the delay to blockchain industry incumbents being reluctant to work on a project that doesn’t appear to have the hallmarks of a true cryptocurrency.
Facebook is losing popularity.
The majority of the users leaving Facebook in 2019 are going to Instagram, which is a Facebook-owned entity. The decline in the millennial segments may be a result of younger folks being more tech-savvy and aware of the consequences of Facebook's data and privacy policies.