Facebook’s Whitepaper Has Major Red Flags Involving Changes to Their Plans and ID Concerns

  • Facebook’s whitepaper includes a brief statement about promoting “an open identity standard.”
  • Bobby Ong pointed out that Facebook has made changes to the whitepaper since the release.

The decision that Facebook has taken on to launch the Libra cryptocurrency has been a fairly bold movie for the social media platform, and it has been met with a lot of debate. As a result, there are plenty of people wondering what the next move could possibly be for the cryptocurrency industry and for Facebook.

The whitepaper for Libra offers significant details about the new cryptocurrency, but the concept of privacy leaves customers a little out of the loop. As well as launching a new stablecoin, the asset could soon change the way that people trust each other online. Consumers can find a brief moment at the top of page nine, discussing how Libra will be governed.

Specifically, the whitepaper says,

“An additional goal of the association is to develop and promote an open identity standard. We believe that decentralized and portable digital identity is a prerequisite to financial inclusion and competition.”

In reaction, Director Dave Birch of Consult Hyperion, who has written books about Bitcoin and digital identity, said that these few lines are “the most interesting” of the entire document. Using identity to clear pathways online is a major issue to many people, exceeding the importance of adding a cryptocurrency. Birch added that there is not a single comment placed in the whitepaper that isn’t intentional and that the statements are “there for a reason.” He added that Facebook is “actually going to try and fix the identity problem,” though a spokesperson with Facebook said that the company has nothing else to add.

Just a week after the whitepaper was released, there are some analysts discovering changes that could ultimately change the path that the asset is taking. Co-founder of CoinGecko, Bobby Ong, stated that he has been researching the whitepaper, discovering a very interesting change – the lack of bank deposit currencies for USD, EUR, GBP, and JPY. He tweeted that he remembered seeing these currencies in the whitepaper when it was first released, but it no longer shows them.

Before now, the white paper said that whichever local currency is used would not always see the same conversion. Instead, it would include the value of the underlying assets, which means that an individual Libra’s value would end up fluctuating as well.

When the token was first introduced in their announcement, the whitepaper also said that there would be an algorithm called the Libra BFT consensus protocol. Facebook claimed that the launch would deal with transactions speed and privacy, which are issues that Calibra is overlooking. With these changes, there is clearly some upset within the community. In fact, there are many members right now that say that the decision to exclude these fiat currencies will not bode well for Facebook.

When the whitepaper was released, Facebook commented,

“When data is stored on the Libra Blockchain, a transaction will be associated with metadata containing the time the transaction was committed to the blockchain and the validator node that added the transaction to the blockchain. Transactions do not contain links to a user’s real-world identity.”

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