Libra, a cryptocurrency developed by Facebook, has been gaining momentum over the past few months, as digital currencies are turning heads of many, especially tech giants.
As everything and anything, Libra also garnered different point of views and opinions from the cryptocurrency community itself. Unfortunately, a lot of them feel that Libra doesn’t have what it takes to be a cryptocurrency, based on its properties.
Basically, a digital currency should be secured by cryptography to provide secrecy and integrity to the data. Bitcoin, the world’s first cryptocurrency that still tops the list, has set a trademark for other cryptocurrencies.
Hence, Libra is seen to be contradicting with Bitcoin’s decentralized nature because a transaction using Libra needs to be confirmed by companies that are approved as validators based on the funds they provide. This may also lead to some transactions to be expurgated.
Among the comments made on Facebook’s Libra, that has made its way to the news is by the man behind the concept of smart contracts, Nick Szabo. He actually tweeted that “Libra is a cryptocurrency in the same way that a doll is a baby.”
The Bitcoin developer’s statement was based on the fact that the Libra network is centralized as the validators have access to censor transaction details. It is notable that Paypal, Visa and Uber are among the companies that paid $10M to become validators.
Although in the past decade, cryptocurrency has gained different meanings as up to 1000 digital currency being invented, most of them are more or less still similar to bitcoin. But certain properties like not being decentralized is basically defeating the purpose of it being a digital currency. So, the upcoming decade may put the definition of cryptocurrency at stake.
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