The CEO of OptDyn, Alex Karasulu, stated that Libra is not a liberating currency like other cryptocurrencies, but it’s still a much better version than Paypal. The blockchain currency, Libra, operates a bit different from other blockchain currencies. It is a permission blockchain. The currency only allows licensed validators on the platform. It is not like other blockchain currencies with little restrictions on who is allowed on the network.
He further pointed out that the transaction validators, who are about 100, are responsible for keeping track and validating any transaction within the Libra network. The currency is already running like a cartel, which may pose some difficulties soon. It could lead to some issues with those organizations not within the foundation. Again, crypto-anarchist and diehard Bitcoiners would not like how the 100 corporate members manage the network.
Stakeholders in the cryptocurrency market believe that Libra does not liberate transactions from the control of central banks. It is the major difference between Bitcoin and other currencies in the cryptocurrency market. Also, many people won’t call Libra a safer platform, especially for investors that are worried about market instability of sovereign fiat currencies.
Karasulu also stressed that the main problem investors have over Libra is the likelihood that the central banks can have a stronghold on the currency. Usually, it should be determined by market forces, just like in other cryptocurrencies. Others have even argued that because of this difference, Libra should not be called a cryptocurrency.
Even their technology is also different. While Bitcoin and other cryptocurrencies use a network of a database from different computers, Libra maintains a permissioned blockchain. It is far too easy to control activities and transactions over the Libra network than other blockchain technologies. Every transaction has to pass through a list of trusted parties.
However, Karasulu also noted that Libra has a very big potential to grow and surpass many other cryptocurrencies in value. Facebook, the social networking giant with billions of users, created the currency. If they can find a way to get some of these users to invest in Libra, the currency will have a very solid foundation. And it seems Facebook is already moving in that direction.
A Threat to other Cryptocurrencies
Although some crypto investors may not like using the platform, it still poses a lot of threat to other cryptocurrencies. That’s because of the potential investors facebook may likely lure from its billions of users. The CEO of Interlaps Wayne Chen also stressed the competitive threat of Libra. According to him, even though there are derivative and technical differences between Libra and other cryptocurrencies, Libra’s stability will have a compounding effect on other cryptocurrencies.
No matter how anyone sees the Libra platform, the cryptocurrency will continue to draw criticisms from banks, big governments, and the cryptocurrency market.