Libra technology is not a decentralized cryptocurrency

The ability to send money to anyone from a smartphone to a smartphone without a bank account. This

the moment seems to have scared the most bankersaround the world, in general, the excitement around the upcoming Zuckerberg Libra cryptocurrency is far from complete. To this add oil and bitcoin experts, who argue that Libra does not fit the concept of cryptocurrency at all. Facebook’s own digital currency has been in development for a long time, but it was recently announced. And those who understand what blockchain is, what bitcoin is and decentralization. They know for sure that Libra cannot be a cryptocurrency, and cannot offer the same level of security that Bitcoin possesses.

Cryptocurrency

The world's first real cryptocurrency underthe name bitcoin, and in the name of the currency type the word crypto, because there is a solid end-to-end encryption. Hacking or intercepting such a transaction is almost impossible. And the transaction cannot be lost either, it cannot be concealed, rubbing traces, because each action is recorded in a log, but not simple, but distributed, that is, it cannot be used by individual users, but only one and all. In this case, the system will not succeed, because millions of people will have to deceive themselves. There is no control in the Bitcoin network, everything is free for any user, there is no centralized management, no director or management structure.

Libra is not a crypt?

Compare Libra with bitcoin cryptocurrency evenincorrectly, since it is governed by the Libra Association, and this is a closed system, this is the circle of certain people, organizations that are carefully selected. It is this structure that will manage all transactions, it will also support its own version of the blockchain. After the launch, the number of partners who will manage everything will be 100, and no one else will be allowed.

In addition, even the structure of Libra does not implyno decentralization, and for cryptocurrency and the blockchain in general, this is the main feature. And all centralized systems from time to time experience shocks, they do not have the stability that cryptocurrency offers. Each member of the association (the future Libra board) pays a $ 10 million membership fee, which becomes the reserve of the entire digital currency. The reserve will consist of real assets, from real money, securities to precious metals, real estate and other assets. It turns out that this is the same Central Bank as the others. That reserves will give Libra stability. While Bitcoin is absolutely not provided with any reserve, not even one dollar.

Bank in the smartphone

Libra, according to experts, is centralizedthe network, so it does not have the advantages of cryptocurrency, the board can deny service to anyone, it can cancel transactions, request information about who you are transferring to, how much. In general, an ordinary bank, only in a smartphone and with a social network instead of your bank. And if you remember the reputation of Facebook, then the question arises of trusting whether users are ready to trust them with their money.

In general, Libra, this is another attempt to createalternative to the state monopoly on money. So, competitors of Libra are not cryptocurrencies, they are state and commercial banks. And they are unlikely to give such a strong competitor.

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