Facebook launched its crypto project, Libra, at the beginning of this year. However, there has been growing criticism on the project from industry firms and crypto enthusiasts. The sentiment is that “blockchain” and “crypto” can never sport the principles of a decentralized network. The latest to voice his skepticism about Libra is Marcus Treacher the customer success SVP at Ripple.
Ripple executive says Libra is a “walled garden”
Last week Treacher told CNBC that Libra’s main challenge is being a “walled garden” system. In essence, what Treacher meant is that he sees Facebook’s Crypto as a closed system that doesn’t allow seamless entry or exit of users and nodes. This implies that Libra will be under the control of a team of executives, and power won’t be in the hands of users. Since it will be a cryptocurrency controlled by its creators its will thus be centralized.
The internet largely comprises of walled gardens and the advent of blockchain systems seeks to get rid of and do away from the controlling central authorities. The comments from Treacher are somewhat interesting considering most analysts and crypto enthusiast consider Ripple as centralized Crypto. Currently, Ripple executives who control the cryptocurrency and act as primary owners hold over 50% of Ripple’s XRP units.
Treacher defended their model indicating that Ripple does not have a walled garden and that it is a network with no limit that connects all users and players interested in the network. On Libra, Treacher may be right considering the Libra network when it launches will run under different nodes controlled by corporations. The corporations include Coinbase, PayPal, Uber, Visa, Booking Holdings, and MasterCard, among other investment groups and cryptocurrency firms.
Libra will have less impact just like Bakkt
According to Treacher, Libra has massive potential, and he says that it is a good thing Facebook is venturing into Crypto. He believes that it could potentially have significant in legitimizing the institutional adoption of cryptocurrency. However, this is still questionable owing to the reputation that Libra’s parent company has regarding privacy.
Industry experts and analysts indicated that Bakkt, which aims at bringing institutional players into the crypto industry, has done little. It has been the reason for the slump of Bitcoin in the past few days after it failed to gain serious attention. So there is a sentiment that Libra could also do little in regards to the institutionalization of Crypto.
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