Facebook has recently released its new crypto project called Libra. The market has received it generally well and many are very excited about how it could eventually affect Bitcoin (BTC) and the whole crypto ecosystem. However, the crypto and blockchain project Hedera Hashgraph considers that Facebook has copied their idea.
Hedera Hashgraph The Project Behind Libra’s Proposal?
According to Mance Harmon, the co-founder and chief executive of Hedera said that representatives of his company met with Facebook to discuss different issues. Mance mentioned that Facebook had several questions and that they have explained how they thought to deal with technology and blockchain challenges.
Governance was also one of the main issues discussed and they explained how a governing council of trusted organizations is essential for increasing trust in the crypto market. There is an important difference between Libra’s governance model and Hedera Hashgraph’s governance model. On the Libra network, members have to pay $10 million to become a node and be eligible to buy the Libra Investment Token. Meanwhile, members of the Hedera council can earn coins from their work running the network.
Hedera claims to be the only and first company before Libra with this government council governance model. Some of the firms included in this council are AMlaw100, DLA Piper and also T-Mobile’s parent company Deutsche Telekom.
Some of the investors that placed their funds in Hedera include Barry Silbert of Grayscale Investment. The Hedera Hashgraph platform is also built in “post-blockchain” directed acyclic graph (DAG) technology. This platform becomes more efficient as it gets bigger since new transactions are verified by nodes that verified two previous transactions.
According to Harmon, the crypto market changed after the announcement made by Facebook, he mentioned that while the crypto market has a global presence it is still a niche community. This is why Facebook’s Libra will introduce crypto to a much broader market than now.
Harmon mentioned about Facebook’s Libra project:
“Also, Facebook Libra made it clear that it’s no longer enough to simply have a protocol platform and a community. To compete in this market requires a governance model that mainstream, enterprise customers will trust. We led the way with the Hedera Governing Council, and now Facebook has validated that approach.”
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